Major investor in The Gym Group announces plan to offload shares within the company
The Gym Group, the UK-based fitness chain founded by John Treharne in 2007 and floated on the London Stock Exchange in 2015, has reported a revenue of £121m for the six months to 30 June, 2025, marking an eight percent increase. This growth was accompanied by a four percent rise in the average revenue per member to £21.16 and a four percent increase in the average number of members to 953,000.
Despite this successful first half, Blantyre Capital, a firm known for investing in middle-market companies with specific capital needs, has decided to sell a portion of its shares in The Gym Group. The sale, part of a secondary block trade, will see Blantyre Capital become The Gym Group's third largest shareholder, falling below Goldman Sachs and Liontrust Asset Management. Other major shareholders include RBC Global Asset Management and Fidelity International.
The reason behind Blantyre Capital's decision is not explicitly stated, but the sale is likely a move to rebalance its portfolio. The sale comes after The Gym Group announced that while the first half of 2025 was successful, the cost of new openings and refurbishments would be weighted towards the second half of the year.
Chief executive Will Orr expressed confidence in The Gym Group's full year outlook, citing the excellent performance in the chain's new sites and the evolution of its site proposition. He also mentioned a more tailored marketing approach, which could contribute to future growth.
Following the news of the sell-off, shares in The Gym Group fell by six percent. The Gym Group is expected to announce its half-year results in September. If the sell-off goes ahead, Blantyre Capital will maintain a significant stake in The Gym Group, indicating that it still holds some confidence in the company's prospects. The sale may also be part of Blantyre's strategy to manage its investments and liquidity, as there is a six-month lock-up period following the transaction to prevent further disposals by the seller, subject to certain exemptions.
The Gym Group has previously stated that it is on track to open between 14-16 locations in 2025. With its strong performance so far, it will be interesting to see how the second half of the year unfolds for this growing fitness chain.
- The decision of Blantyre Capital, known for investing in various business sectors, to sell a portion of its shares in The Gym Group indicates a potential rebalancing of their finance portfolio.
- Despite facing a六 percent drop in its share price post the sell-off, The Gym Group's strong revenues, new site performance, and planned marketing strategies suggest confidence in its business growth.
