The Gym Share Discussion Threads

[sh1984] 31/8/2016 09:49

Surprised at the SP, just as much as you today - Given company is making profit, probably down due to some profit taking as there were some big buys yesterday at market close.

Difficult to gauge with this one, Share Price was at 274p in April and if anything the company is in a better position now compared to 4 months ago......

[tflemmings84] 31/8/2016 09:04

Excellent results as expected - when should we expect the share rise though? not much movement so far!

[boffster] 30/8/2016 14:32

I don't see how this earnings multiple can be justified. Competition in this sector is cut throat, and this business doesn't appear to bring anything new or exciting to the table. I don't think growth will be maintained without further fundraising / takeovers. Can't see it ever making a return for its shareholders. Best avoided IMHO

[sh1984] 30/8/2016 11:04

Up she goes.......... hoping for another bounce up on tomorrow's RNS on interim results.

[tflemmings84] 30/8/2016 09:01

I sure did!

[sh1984] 30/8/2016 08:18

Up today, on the news of fitness first takeover & site split off, so in essence less competition for gym group.



Hope you bought last week

[sh1984] 26/8/2016 15:12

Interim results due Wednesday 31 August 2016, so should see some buys coming up in anticipation of good results based on previous trading statement. Given bank holiday this weekend, hope to see some good activity today & Tuesday.

[oregano] 26/8/2016 11:41

there are alot of business out there whose business model is under threat. the GYM group is a disrupter. it is a clean business, no legacy problems that come from old tech or acquisitions. and given the fact it has gone no-where (in share price terms) since the float, it is now much better value at 11x EBITDA.

Personally i think it is a trade up to 250 - 80p, when you get the VC backers coming in and placing a load more stock. it does rely on good forthcoming numbers, but i think the trading statement gave us some visibility. of course it could produce good numbers and go no-where, but i look at stocks like PFG that have recovered well post Brexit and don;t see why this shouldn't follow suit.

[tflemmings84] 26/8/2016 11:31

Thanks guys. I think i'll be picking up some of these too. Roll on results day!

[sh1984] 26/8/2016 10:57

Debt will always be high initially for this type of business due to the large investment needed upfront for new facilities & equipment. I expect the level of debt will reduce this year as they can leverage their supply chain to cut purchase costs and also reduce their operational cost base as they expand.

Based on their previous update total members at 30 June 2016 of 424,000, are up 19.4% versus H1 2015 (June 2015: 355,000)& Strong cash generation in the period with net debt reduced to £2.5m at 30 June 2016 (December 2015: £7.1m).

The consensus market forecast is for profit of £8.9 million if they hit that or are anywhere near then this is a winner.

[oregano] 26/8/2016 10:37

i have been picking some of these up. having been a member of Virgin / Nuffield gyms for many years, i visited a Gym group. It is an amazing concept, and a third of the price of their competitors. if they stopped growing they'd chuck off cash, but so long as they can find the locations(which a weak economy should help), they should carry on growing. I guess the risks are a slow down in member growth, or the impact of the living wage. there is still 40% owned by VCs, but I'd guess they will wait for price appreciation before they look to sell. I could be wrong on that.

tfl - their debt is going to rise a bit from here.

[tflemmings84] 26/8/2016 10:28

Definitely expanding at a high rate and i suspect they'll continue to do so. Just feel like theres not a huge amount of interest in the share. I'm fairly new to all this but their pre-tax against debt doesnt seem in a great position at present

[sh1984] 26/8/2016 10:19

Agree with you on the results being positive, why do you think the fundamentals are dodgy? the gym group is in a niche position as a low cost gym operator with only one major competitor. Customer numbers are increasing at a high rate and they are opening new facilities across the country, will be a challenge to maintain that level of growth, but surely it's in a better position than 90% of other gym operators due to its low cost base.

[tflemmings84] 26/8/2016 09:51

Any thoughts on the upcoming results?? I suspect the results will be positive but the fundamentals still look dodgy

[sh1984] 23/8/2016 16:27

Some big buys today, hope it continues for the remainder of the week on the sentiment of positive results next week.

Nice article out recently too

www.ibtimes.co.uk/britains-gym-sector-flexes-muscles-it-looks-withstand-possible-recession-1577649

[sh1984] 18/8/2016 14:37

Mickey,

Did some research and if they meet market expectations (£8-9m profit) which the CEO claimed was on track last reporting period then this is undervalued............ I'm in

[sh1984] 17/8/2016 11:32

results due end August?

[mickeyb] 19/7/2016 16:05

Something's up as this is a positive rise today.

[gamwah] 04/7/2016 13:19

Are the results due tomorrow still?

[mickeyb] 02/6/2016 14:05

large number of shares traded last 2 days, maybe share price will now rebound back to April high's.

[rjmahan] 18/4/2016 20:34

Has anyone modelled this ?

[ethioninja] 16/4/2016 15:59

cheap & open 24 hours is a great selling point but we all know 99% of the customers will want to use it during normal hours; which is where the problem will arise.


i've been there and it's like oxford circus tube station;therefore i wouldn't bother researching further, notify me when they make a profit though.

[mickeyb] 09/3/2016 13:36

Results out on Tuesday 15th March 2016, should see a rise before.

[aphrodites] 28/1/2016 10:21

Looks like there are very few followers of GYM but thought those who are here might like to know that I spoke to an institutional holder of the shares who said he had been approached several times recently by market makers who were trying to get hold of stock.