The Gym Group revenue rockets a third as pandemic losses linger and shares fall
The Gym Group’s revenue had rocketed a third in the past year, though it continues to swallow lingering pandemic-era losses.
The low-cost gym chain enjoyed a revenue boost to £106m from £80.5m, after pandemic restrictions significantly dampened earnings.
The company has since unveiled a plan to open 28 new gyms in 2022, with 20 leases already exchanged. The group also has its sights set on opening 25 to 30 new sites for 2023 and 2024.
Shares plunged more than five per cent by mid-morning to 195.4p.
The group, however, continued to swallow an operating loss of £35.4m for the 12-month period, just £1m less than the £36.4m hit it took in 2020.
Pandemic punches continued to knock the company’s share earnings, which saw losses fall slightly from 23.1p in 2020 to 20.7p in 2021.
While losses remain, they are shrinking. The gym group’s net debt, which excludes its property network, dwindle from £47.3m to £44.1m in the 12-month period.
Following its re-opening in April, total members climbed from 547,000 at the end of February 2021 to 718,000 by the end of the year.