(Alliance News) - Gym Group PLC on Friday said revenue in 2020 was hit by lockdown-enforced site closures, with the low-cost gym operator losing 45% of its trading days due to restrictions.
The company also added that it has bolstered its board by adding the chief executive of online healthcare platform Push Doctor to its non-executive team, as well as former England and Manchester United football star Rio Ferdinand.
Revenue in 2020 dropped 47% to GBP80.5 million from GBP153.1 million, Gym Group explaining it lost "45% of the trading days in the year due to closure as a result of government restrictions".
During the current closures, Gym Group's monthly cash burn is roughly GBP5 million, lower than the GBP6 million from the November lockdown. Gym Group has taken advantage of UK government support, the company said.
Last week Tuesday, UK Chancellor of the Exchequer Rishi Sunak unveiled a fresh GBP4.6 billion support package for businesses across the UK dealt a further crippling blow by enforced closures.
It included one-off top-up grants worth up to GBP9,000 per property for firms in the retail, hospitality and leisure sectors to help nurse them through to the spring.
All its units 184 of its sites are closed, Gym Group said. In December, the new tier 4 restrictions meant it forced to close 162 of its gyms, though it was allowed to operate in areas under tier 3 restrictions.
Membership numbers were down 27% annually to 578,000 at the end of December from 794,000.
However, headline price per membership was up 2.0% to GBP18.81 from GBP18.45, with the take-up of its premium LIVE IT offering rising to just shy of 23% from just under 19% a year earlier.
The company said it has "significant liquidity" at its disposal through a GBP100 million loan, but given the latest lockdown, it has opened up talks with its lenders to "review the future covenant tests relating to this facility".
Fresh from opening in Chichester, its 184th gym, the company said it has a "strong pipeline" of new sites for 2021 and beyond.
"We will determine the timing of the rollout programme once there is greater visibility about a reopening date for gyms," the company said, adding that it opened eight new gyms in 2020.
On its non-executive appointments, Gym Group said both Ferdinand and Wais Shaifta join from February 1. Stepping down however, is Senior Independent Director Paul Gilbert, who will retire at the company's May annual general meeting.
"Wais has gathered substantial e-commerce expertise from a number of leading online businesses. He is currently CEO at Push Doctor, one of the leading digital healthcare companies in Europe, working in partnership with the NHS to connect thousands of patients each week with clinicians," Gym Group said.
Shaifta also had roles as the director of global operations at beauty marketplace Treatwell as well as international operations director at Just Eat, a precursor to FTSE 100-listed Just Eat Takeaway.com NV.
"Following his renowned football career, Rio has pursued a number of interests in business, broadcasting and charity," the company added.
"Rio is a passionate advocate for fitness, mental health and well-being and diversity."
Gym Group shares were 1.7% higher at 221.61 pence each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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