Gym Group is fighting fit

2 UPDATE

LOW-COST gym chain Gym Group is going from strength to strength. It floated last November at 195p, Midas tipped the shares the same month at 202½p and last week the stock closed at 220p following better-thanexpected interim figures.

The company moved from an £800,000 loss to a £4.6million profit and announced a maiden interim dividend of 0.25p. It opened six new gyms during the six months and expects to open at least 15 annually this year and next. Analysts expect full-year profits of £9.2million, rising more than 40 per cent next year to £13.2million, with the dividend up from 0.75p to 1p.

Midas verdict: Britons are becoming fatter, but there is a growing interest in keeping fit. Gym Group offers access to quality equipment and classes at a low cost, an approach with widespread appeal. At 220p, the shares have plenty more potential.

Traded on: Main market Ticker: GYM Contact: tggplc.com or 07739 005462