Investing.com — Shares of Gym Ltd (LON:) jumped more than 6% on Monday after the company released its post-close trading update, signaling strong revenue growth and a positive outlook.

The update reports strong growth in key areas, including membership gains and improved revenue per member, as well as the opening of new sites, which are expected to will continue to drive the company’s growth.

In the update, the company reported an 11% increase in revenues for FY24, which reached £226 million, exceeding consensus estimates by 1%.

Members grew by 5%, reaching 891,000, while the company’s average revenue per member per month increased by 7%, reaching £20.81.

The company also reported a reduction in net debt, to £61.3 million from £66.4 million, underscoring its strong financial position.

Jefferies analysts noted that the company’s updated guidance for FY24, which expects EBITDA to be slightly at the high end of the market forecast, represents a 4% increase over current consensus expectations.

This follows previous guidance upgrades in July and September, which reflected the company’s continued momentum.

A 2% increase in EBITDA is expected in FY25 on current forecasts, with continued growth expected from accelerated site openings. The company has already opened 12 new sites in FY24 and is targeting 14-16 for FY25.

“Average members are c.0.8% higher than we estimate with ARPMPM being c.1.4% lower- we can tell from this that Ultimate and Off-Peak remain the same proportion of mix, c.30% and high single digits,” said. analyst at RBC Capital Markets in a note.