PRODUCT NEWS
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| PureGym expects European operations to reopen before UK – says it has 12 months of liquidity |
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| 16 Feb 2021 . BY Tom Walker |
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| It currently operates 500 gyms and has around 1.7 million members under the PureGym brand in the UK, Basefit in Switzerland and Fitness World in Denmark / PureGym |
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PureGym expects lockdowns to last "until at least 31 March" – and that it will be reopening its Danish and Swiss operations before the UK.
Offering its bondholders an interim update, the gym chain said all of its operations remain closed and that it had £236m available liquidity at the end of December 2020.
As its targeted total cash burn across the group stands at £4.5m per week, PureGym said this equated to around 12 months of liquidity.
It also revealed that its weekly operational cash burn was £1m better than during "Lockdown 1" in early 2020.
"This is a result of learnings from the original lockdown, allowing faster implementation of operational savings, alongside a more flexible furlough scheme," PureGym said in the statement.
Despite the continued financial pressures caused by the pandemic, the group said the outlook remains positive, as there is "underlying resilience of demand" in all three geographies it operates.
It currently operates 500 gyms and has around 1.7 million members under the PureGym brand in the UK, Basefit in Switzerland and Fitness World in Denmark.
In August 2020 the company revealed that its Danish and Swiss clubs returned to pre-COVID-19 profit levels in the first month of trading after reopening.
"The ability to rebuild the business quickly once gyms are reopened is clear," PureGym said in the update, published this week (15 February), adding that the inevitable closures of some competing gyms will create opportunities for those left standing.
"We expect supply to leave the market, creating further opportunities and medium to long-term outlook remains very positive," the company said.
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