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(Alliance News) - Gym Group PLC on Wednesday posted an unsurprising swing to loss during a first-half battered by Covid-19 lockdowns, but the company said it was cash flow positive in August after its sites reopened.
Revenue in the six months ended June 30 halved to GBP37.3 million from GBP74.0 million and the gym operator swung to a pretax loss of GBP27.0 million from a GBP5.6 million profit.
Lockdowns in the UK to curb the spread of Covid-19 meant gyms were forced to close on March 20. In England, they reopened on July 25.
Gym Group said its estate is now fully up and running again, after sites in Wales opened doors on August 10, before Scotland followed suit on Monday.
"Following our decisive actions during lockdown to minimise costs and secure additional liquidity, we have reopened as the strongest capitalised company in the sector. Exacting new safety measures and innovative uses of technology have resulted in member numbers and gym usage growing since reopening as member confidence increases," Chief Executive Officer Richard Darwin said.
Membership numbers at the end of June fell 12% to 698,000 from 796,000 a year earlier. Members at the end of August were 676,000, up 2.7% slightly from 658,000 when sites in England reopened on July 25.
Darwin added: "We anticipate the long-term structural growth of low-cost gyms will continue to be driven by the underlying interest in health and fitness, which is accelerating as a result of Covid-19 and the government's initiative to reduce obesity. With the likelihood of a challenging economic environment in the coming months, gym-goers will increasingly look for great value and as the lowest-priced high quality gym operator we are well-placed to meet this demand."
Gym Group noted it was "cash flow positive" in August, its first full month since it was allowed to reopen any sites.
Shares in the company were 1.6% lower at 154.36 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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