The Gym Group beats expectations on strong reopening demand
The Gym Group today said trading had outperformed expectations since the easing of lockdown measures as Brits flocked back to its venues to get in shape.
The fitness firm reopened its gyms in England on 12 April, followed by reopenings in Scotland on 26 April and Wales on 3 May.
Its entire estate of 187 sites is now open and trading, with social distancing measures in place and a cap on numbers. Group exercise was allowed to resume from 17 May.
The Gym Group hailed strong trading since the reopening with total membership increasing from 547,000 at the end of February to 729,000 by 24 May.
This remains behind the 794,000 members recorded in December 2019. However, the company said all members were now paying after it removed its free freeze option after reopening.
Shares pushed more than three per cent higher in morning trading.
The London-listed group has opened four new sites since reopening in Sydenham, Chichester, York and Cambridge.
But it warned it expected trading limited net membership gains over the coming three months, as the summer is usually a quieter time for gyms.
Net debt at the end of April was £63.1m, with outstanding deferred rent and VAT of a further £9.4m.
The company has a total bank facility of £100m, but said it had started discussions with lenders about increasing its financial flexibility as it looks to roll out new sites.
The Gym Group said it was continuing to enter into new leases, added that shifts in the commercial property market after the pandemic provided opportunities to snap up sites at affordable rents.
“Our members are delighted to be working out in the gym once more with visits per member and new joiner sign-up rates at record levels,” said chief executive Richard Darwin.
“With membership levels growing strongly, we are building our pipeline of new gyms to take advantage of what we see as a unique opportunity to extend affordable fitness to even more locations across the UK.”