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The Gym Group swings to interim loss as Covid-19 hits revenues

Wed 02 September 2020 09:13 | A A A

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(Sharecast News) - The Gym Group swung to an interim loss this year after the budge workout centres operator was forced to shutter all of its locations in late March as a result of the Covid-19 pandemic.

The London-listed group posted an adjusted pre-tax loss of £26.3m on Thursday, a marked turnaround when compared to the profit of £7.1m recorded in the first half of last year, as revenues tumbled nearly 50% year-on-year to £37.3m

Losses per share came to 14.9p, another big swing when compared to the earnings per shares of 4.0p seen in 2019.

The Gym Group, which narrowed non-property net debt from £47.2m to £29.2m during the half, also implemented cost reduction plans aimed at stemming outflows, raised roughly £40.0m through an equity placing and locked in a £30.0m extension to its existing £70.0m revolving credit facility

However, despite having reopened on 25 July, the Gym Group said total membership numbers had fallen to 658,000 from 796,000.

Chief executive Richard Darwin said: "Following our decisive actions during lockdown to minimise costs and secure additional liquidity, we have reopened as the strongest capitalised company in the sector.

"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."

As of 0910 BST, Gym Group shares were down1.15% at 155.0p.

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