Jim Group shares were opened high on Friday after the group shared trading updates for the year ended December 31, 2020.
The company, which owns 184 low-cost gyms, lost 45% of annual trading days amid government restrictions, resulting in a decline in total revenue from £153.1 million in 2019 to £85 million. has been revealed.
The gym group has begun discussions with lenders. The update states: “Given the continued impact of the latest lockdown and its impact on gym operational reopening, we have a discussion with lending banks that continue to cooperate to review future contract tests related to this. We have started the facility.
The company’s membership declined from 794,000 to 578,000. All memberships are frozen so that members don’t pay while the gym is closed.
Chief Executive Richard Darwin commented: “2020 has been a challenging year for our businesses, our members and colleagues. Through the outstanding work of our team, we provide members with a jointly secure athletic environment and the gyms are open. We have demonstrated the resilience of our business model by sometimes profitably trading.
“Cash management during the pandemic has concluded 2020 with manageable levels of debt and substantial liquidity. When health and fitness become more important than ever to our citizens, we are We are ready to emerge from the pandemic and take advantage of the many opportunities available.”
Despite the difficult years, the Jim Group opened eight new sites last year, with three more sites on-site in York, Seidenham and Cambridge.
The group said they “continue to see opportunities to access excellent new sites with attractive rents.” We have built a strong pipeline since 2021 and will continue to advance new leases during this current lockdown period. When you have greater visibility into gym reopening dates, you will determine when your rollout program is timed. ”
Jim Group’s stock is trading +1.66% at 221,61 (1007GMT).
