Banking Update 17 December 2020
Revised Bank Facility
The Gym Group plc ("the Company"), the nationwide operator of 183 low cost gyms, announces today it has signed an amendment ("the Amendment") to the £30 million extension to its banking facilities, put in place with HSBC, Natwest and Banco de Sabadell in June 2020 as part of the Company's COVID-19 contingency planning (the "Extended Bank Facility"). This Extended Bank Facility forms part of a Revolving Credit Facility ("RCF") totalling £100m of facilities provided by the three banks.
Under the Amendment, the term of the Extended Bank Facility will be extended by six months from December 2021 to June 2022 at which point the terms of the original £70 million RCF will apply until its termination in October 2023. The EBITDA covenant tests of the Extended Bank Facility have been amended to take into account the impact of the recent second national lockdown period in which most of the Company's gyms were closed. The new covenant tests also provide a degree of flexibility for further potential closures not yet envisaged.
Re-opening of gyms
As of 12 December 2020, the Company has all of its gyms open. On 2 December, all gyms in England were re-opened, following a 4-week national lockdown, including our sites in Tier-3 locations. In Scotland, nine of the Company's 13 gyms were closed for three weeks as a result of local restrictions but these gyms re-opened on 12 December. All three gyms in Wales are currently open.
As part of the acquisition of 13 sites from easyGym in 2018, the Company acquired two sites that had limited remaining terms on their leases: London Oxford Street and Birmingham Kings Heath. The Company has now agreed new leases on both sites and will be paying the previously agreed contingent consideration in instalments up to the end of 2021. Following a major refurbishment, the London Oxford Street gym re-opened on 2 December.
Launch of the Gym Group's Kickstart Programme
In December the Company welcomed the first 30 recruits onto its Kickstart programme; a scheme supported by the UK Government to encourage 16-24 year-olds into new employment opportunities and training. The new trainees will be working and learning in gyms alongside gym managers and at the same time studying for their personal training qualifications with a view to becoming Fitness Trainers in the Company in due course.
Notification of Trading Update
The Company will be issuing a pre-close trading update on 15 January 2021.
Richard Darwin, CEO of The Gym Group, commented:
"We are pleased to be welcoming members back to our gyms again. The Government's decision to keep gyms open in all tiers shows the important role the sector has in fighting Covid-19 and keeping the nation active. With the extension on our bank facilities secured and good levels of liquidity, The Gym Group is well placed to emerge from the COVID-19 crisis in a strong position."
FOR FURTHER INFORMATION, PLEASE CONTACT:
The Gym Group
Richard Darwin, CEO
Mark George, CFO
via Instinctif Partners
020 7457 2005/10
020 7260 1366
020 7418 8900