The Flyefit gym chain recorded pre-tax losses of €2.71 million in 2020 as revenues almost halved due to Covid-19 restrictions.
That is according to consolidated accounts for Flyefit Holdings Ltd which show that the pre-tax losses of €2.71 million in 2020 follow pre-tax profits of €4.66 million in 2019 - a negative swing of €7.38 million.
This followed revenues decreasing by 48 per cent of €9.1 million from €18.97 million in 2019 to €9.85 million during 2020 as the gym sector was one of the hardest hit by Government enforced pandemic closures.
The losses and revenue decline for 2020 have not stopped directors, Brendan O’Hagan and Séamus Kennedy from continuing with their expansion of the business.
Last October, Flyefit announced a €10 million investment programme in four new premises and upgrades to existing facilities.
The four new "super gyms" are to add 120 new jobs and are targeted to higher anticipated suburban demand as a result of the shift to hybrid working.
In their report accompanying the 2020 accounts, Mr O’Hagan and Mr Kennedy said that the 2020 results were satisfactory in the context of the Covid-19 pandemic.
The chain currently operates 16 gyms in city and suburban locations in the capital and one in Cork.
In response to the pandemic hit on the business, Mr O’Hagan and Mr Kennedy took swingeing cuts to their own pay as directors’ pay was reduced by 76.5 per cent or €325,500 from €425,500 to €100,000 for 2020.
Numbers employed by the business reduced from 93 to 76 as staff costs, including directors’ pay, reduced from €3.15 million to €1.83 million.
In 2020, the business received €623,643 in Government supports last under the heading of "other operating income".
The 2020 pre-tax loss takes account of non-cash depreciation costs of €3.5 million and interest payment of €561,415.
The group’s revenues were made up of €9.67 million in membership income and ancillary income of €174,894.
A note attached to the accounts states that profit and loss forecasts to December 2022 reflect profitability and sufficient cash flow to meet the demands and obligations of the business.
The note further states that agreement has been reached with landlords for rent abatements and deferrals while funding for business expansion has been sanctioned by principal lender, AIB.
Shareholder funds at the end of 2020 totalled €11.1 million. The group’s cash funds increased from €2 million to €3.2 million.
Rent paid by the company to Brendan O’Hagan for the year totalled €490,000.