The Flyefit gym group is continuing to expand after narrowing its pre-tax losses by 81% to €524,078 last year.
Flyefit Holdings Ltd reduced its losses as revenues last year increased by 11.5% from €9.85m to €10.98m during the business's second-pandemic hit year.
The 2021 revenues of €10.98m remain someway off the group’s pre-Covid-19 revenues of €18.97m in 2019.
The group’s pre-tax losses reduced from €2.71m in 2020 to €524,078 last year.
The group recorded an operating profit of €133,183 last year after recording an operating loss of €2.15m in 2020.
However, interest costs of €657,261 resulted in the pre-tax loss of €524,078.
The directors state that results for the year and the financial position of the group at the end of the year were considered satisfactory.
In a post balance sheet event, the directors state that the Group has continued with their expansion plans and are in the process of completing final steps in the opening of four new gym locations across Dublin.
The new four gym locations are part of a €10m expansion plan by directors, Brendan O’Hagan and Séamus Kennedy and the number of Flyefit gyms operating today has grown to 20 - up from 16 at the start of this year.
The accounts show that the group last year received Government Covid-19 supports of €1.13m after receiving €623,643 under that heading in 2020.
The loss last year takes account of hefty non-cash depreciation costs of €3.5m.
Addressing the business’s going concern status, a note attached to the accounts states that the group has received the support of its principal lender, Allied Irish Bank Plc and funding for further capital expenditure and business expansion has been sanctioned by the lender.
The note also discloses that management accounts throughout 2022 to date continue to reflect positive net assets and that profit and loss and cashflow forecasts have been prepared to June 2023 and beyond, reflecting both profitability and cashflow sufficient to meet the demands and obligations of the business during this period of review.
A breakdown of revenues shows that €10.69m was made up in membership income with €290,188 in ancillary income.
Numbers employed by the group last year increased from 76 to 98 as staff costs dipped from €1.83m to €1.69m.
Pay to directors increased three fold from €100,000 in 2020 to €300,000 last year. During the first year of the pandemic, Mr O'Hagan and Mr Kennedy took swingeing cuts to their own pay where directors’ pay reduced by 76.5% or €325,500 from €425,500 to €100,000.
Shareholder funds at the end of 2021 totalled €10.49m. The group’s cash funds increased from €3.2m to €4.9m.
Rent paid by the company to Brendan O’Hagan for the year totalled €490,000.
Reporting by Gordon Deegan
