The Gym Group PLC

First-pass take

Gym Group shows strong operating leverage (19% EBITDA growth on 8% revenue growth) and consistent 30% ROIC targets across its low-cost gym estate. However, the company has zero AI exposure—it is a pure-play discretionary fitness operator with no enterprise AI spending tailwinds or AI-driven revenue. Net debt of £59.3m and discretionary demand vulnerability limit downside protection despite low 1.0x leverage.