The Gym Group Set Hike Customer Prices Year

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The Gym Group Set Hike Customer Prices Year

The Gym Group Set Hike Customer Prices Year

The Gym Group is becoming expensive. Customers may have to pay more due to the rapid rise in energy costs. It is set to bear about 2 million pounds of utility bills in 2022.

With the announcement that the group is planning to hike prices, shares sank more than 14 percent and this led to a loss setting at around 8.64 percent. In 2021, the stock prices dropped over 23 percent.

The current monthly customer package starts from 15.99 pounds and it is yet to be revealed the hike figure. However, it is believed the prices could be revised in the second half of 2022.

The Gym Group meanwhile said the current price is cheaper by 4 pounds compared to local competitors and they have retained the price leadership.

The group witnessed an increase in new members last year amid multiple lockdowns due to a fresh Corona variant. About 170,000 people joined and the total strength stands at 718,000. The revenue climbed 31.7 percent and the pre-tax losses dropped to 44.2 million pounds from 47.2 million pounds.

The group is planning to open 28 new sites in 2022 and CEO Richard Darwin said the year started encouragingly that further paved the momentum of excellent recovery. In the last 12 months ending February, membership strength has grown by 50 percent.

Darwin added the rollout program and the opening of 28 new sites is offering more communities to access their gym of great value and high quality.

They have added a new technology platform abreast of undergoing a brand transformation and they are taking advantage of the low-cost gym market growth.

Hargreaves Lansdown analyst Susannah Streeter said the group may witness elasticity as fitness enthusiasts are getting into pre-pandemic habits and simultaneously coping with inflation.

She further added that the quest for fitness will help the group in regaining the losses suffered during the Covid pandemic. However, there is a unique risk that some gym-goers may continue their lockdown habits of working out in virtual classes.

Meanwhile, the prolonged Russia-Ukraine tension may further increase inflation in the country and this may reciprocate with rise in the prices of food and other essential goods including oil and gas. Russia has been slapped with various sanctions by the Western allies. Import of oil and gas from the country has been banned and simultaneously the Russian banks have been removed from the international SWIFT payment systems.

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