18 Mar The Gym Group drops to hefty 2020 loss following Covid closures
The Gym Group today said it was equipped to bounce back from a turbulent year after swinging to a heavy loss in 2020.
The fitness firm suffered a £46.52m pre-tax loss, which signalled a 433 per cent drop from the £14m profit posted for 2019.
The group’s revenue was £80.47m for the year ended 30 December 2020, down almost 50 per cent from the previous year.
During 2020, the company’s gyms were required to close for 45 per cent of trading days in the year due to Covid-19.
There was a higher level of membership retention during the current lockdown versus previous measures.
The firm’s membership level stood at 547,000 at the end of February 2021 compared to 578,000 on 31 December 2020.
Gyms in England are expected to re-open on 12 April after almost a year of closures.
97 per cent of current members say they expect to return to the gym as soon as possible, with three quarters stating that fitness will be more important to them than it was pre-Covid.
The fitness firm will open three new sites in April and one in May, with an additional four starting imminently.
Richard Darwin, CEO of The Gym Group, said that the business demonstrated resilience at the most challenging of times during 2020 and is eager to rebuild.
“We are ready to start rebuilding our memberships levels and growing our estate from 12 April, extending affordable fitness at a time when health and fitness has never been more important,” he said.