he Health club Group has claimed it programs to pursue further expansion right after observing reopening “outperform” all anticipations.
The funds conditioning chain, which sank to a £47 million loss in 2020 as lockdowns shuttered its web pages, mentioned new joiner costs are at “document amounts” and that its whole membership has elevated from 547,000 at the close of February to 729,000 this week.
The firm options to consider benefit of reduced rents in retail parks and open at least 14 new gyms, pursuing 4 latest web page openings including one in Sydenham this week – an opening chief govt Richard Darwin reported “demonstrates our self esteem in London”.
The firm said it expects to be hard cash circulation favourable this month, and will direct this in the direction of its new website rollout.
Darwin claimed the group is in conversations with financial institutions to “increase our financial adaptability” and allow an accelerated openings programme. He claimed the business is about to commence operate on 4 new gyms, has exchanged leases on yet another 10 websites, and is “scouring the market for a lot more”.
The CEO stated: “Visits for every member and new joiner sign-up charges are at document ranges. With membership levels expanding strongly, we are creating our pipeline of new gyms to consider advantage of what we see as a unique prospect to increase economical fitness to even much more locations throughout the United kingdom.
“Pre-pandemic we ended up opening 15-20 sites [per year], and I can see a world wherever we go a lot quicker than that, but clearly we need to do the financing discussions.”
Web financial debt at the close of April was £63.1 million, additionally £9.4 million in VAT and deferred rent costs, which Darwin labelled “very manageable”. Pre-pandemic The Health and fitness center Team was successful, creating a £6.2 million earnings in 2019.
The group also cautioned that summertime is a quieter time for its 187 fitness centers, and that it expects to see “constrained” gains in new users above the next number of months.
Shares ended up up 5.5% on Wednesday morning.