Gym Grp Share Price (GYM)

I picked this up because of the long drawn out base, but having looked at the financials I don't think it has ever earned its cost of capital in the last 10 years.

The dividends it paid during the 4 "good" years are less than the dilution during that time.

The operating profit in the most recent results seems to be before rent, so doesn't sound like an operating profit as I know it.

The company appears to be entirely value destructive. The "recovery" from covid will take them back to not earning the cost of capital. Can anyone on this board explain how this story can work out?

Overhead supply from previous trading, within the past year at 110-120, is likely to limit, any rally. Also the travel sector chart, is still contained within the high/low range of beginning of 1/3/24, which is a time pivot, that is expected to show through a break of the high or the low, the direction for the month of March.

Https://www.proactiveinvestors.co.uk/companies/news/1034179/marston-s-loungers-and-gym-group-to-see-shares-rally-says-analyst-1034179.html

I am waiting for this to fall below 99p share price to get involved, still to much risk and not a-lot of upside from the current 114p share price.

The company is moving in the right direction in some aspects but its slower than expected.

The Gym Group plc posted interims for the HY ended 30th June this morning. Revenue grew 18.5% year-on-year to £99.8m, membership at 30 June 2023 was 867,000, up 9.7% year on year. Group adjusted EBITDA was up 4.8% to £35.1m, statutory loss after tax was a little wider at £6.1m. The business is not yet back to profitability or positive EPS following the Pandemic, but it is moving in the right direction. Net Debt lowered to £69.7m while guidance for FY 2023 was reiterated, namely that revenue growth will broadly be offset by cost inflation, while leverage is expected to remain within the range of 1.5 to 2.0x. Valuation looks average with PS ratio at 1.16x, the share price also lacks positive momentum. GYM is moving back in the right direction but remains a share to monitor for the time being...

...from WealthOracle

wealthoracle.co.uk/detailed-result-full/GYM/792