Low cost fitness group The Gym Group says it has more than halved its annual losses, thanks to an increase in both its membership and their spending.

Its revenues for the 12 months to the end of December increased 18 percent to £204million, which sent its pre-tax losses down from £19.4million to £8.3million. Its membership base grew four percent to 850,000 and average monthly revenue per member increased by nine percent to £19.50.

Chief executive Will Orr said that Gym Group has had a strong start to 2024, with revenues for the first two months up 16 percent and average members up three percent.

Gym Group has 233 sites across the country, which are open 24/7, and Orr said that there was “substantial headroom” for low cost operators like it to grow. The fitness group plans to open 50 new sites over the next three years, with 10-12 opening this year.

“With a strong start to 2024, and clear signs that demand for health and fitness has never been stronger, these are solid foundations on which to build our Next Chapter growth plan,” he said.

Gym Group said that it will target Greater London and other urban residential locations for expansion. According to an analysis of the market by PWC, the market has space for up to 850 additional low cost gyms.