The results reflect both the significant disruption caused by the pandemic and the start of the recovery out of Covid. During this period, gyms were required by the UK Government to close for more than 50% of the trading days. However, with gyms re-opening in April and all remaining Covid restrictions being lifted in July in England, The Gym states to have seen strong demand for their gym memberships. The company now looks forward to a period of sustained recovery and accelerated growth.
The number of trading days lost in H1 2021 was similar to H1 2020, however a lower membership base in H1 2021, due to extended closure periods during 2020 and 2021, resulted in a 21.4% reduction in revenue vs. H1 2020. Strong cost control and government support during closures, together with strong recovery on re-opening, limited Group Adjusted EBITDA less Normalised Rent loss to £8.1m, in line with H1 2020. EBITDA and cash flow were positive in the months May and June, when gyms were fully open again.
“Since the re-opening of gyms in April, The Gym Group has performed strongly with excellent member feedback, a higher rate of visits per member and a rapid recovery in overall membership levels. We have identified some exciting growth opportunities to expand our estate further and raised additional funds from shareholders to capitalise upon them”, commented Richard Darwin, CEO of The Gym Group. “We continue to make fitness accessible for all and deliver further social value to communities around the country. We look forward to the second half of the year and beyond with confidence.”
In July 2021, the company has completed an equity placing in order to accelerate its rollout programme. In addition to four sites opened in the first half of 2021, Thy Gym Group plans to open 40 new sites in the 18 months to December 2022, of which three have opened so far in July and August. Last week, UK-competitor PureGym had announced its expansion to the United States together with its positive results for the second quarter of 2021.
Source: The Gym Group
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