The expanding Flyefit gym group returned to pre-tax profit last year after revenues more than doubled to €22.66m.
The gym sector was one of the hardest hit sectors during the pandemic and new consolidated accounts show that Flyefit Holdings Ltd last year recorded pre-tax profits of €3.27m after sustaining a pre-tax loss of €524,078 in 2021.
This followed revenues at the low cost gym operator increasing by €11.6m or 106% rising from €10.98m to €20.66m.
The directors state that in 2023, the group has continued with their expansion plans and are in the process of completing final steps in the opening of new gym locations across Dublin.
The 2022 revenues of €20.66m top the group’s pre-Covid-19 revenues of €18.97m in 2019.
The group recorded operating profits of €3.89m last year - a 29 fold increase on the operating profits of €133,183 in 2022.
However, interest costs of €627,283 resulted in the pre-tax profit of €3.27m.
The company recorded a post tax profit of €2.63m after incurring a corporation tax charge of €642,067.
The directors state that results for the year and the financial position of the group at the end of the year were considered satisfactory.
Four gyms which opened last year were 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 21 - 20 in Dublin and one in Cork.
The accounts show that the group last year received zero Government Covid-19 supports compared to €1.13m under that heading in 2021.
The loss last year takes account of hefty non-cash depreciation costs of €3.65m.
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 and funding for further capital expenditure and business expansion has been sanctioned by the lender.
The note also discloses that management accounts throughout 2023 to date continue to reflect positive net assets and that profit and loss and cashflow forecasts have been prepared to December 2024, reflecting both profitability and cashflow sufficient to meet the demands and obligations of the business during this period of review.
A breakdown of 2022 revenues shows that €21.64m was made up in membership income with €632,387 in ancillary income along with €391,056 in rental income.
Numbers employed by the group last year more than doubled 98 to 223 as staff costs increased from €1.69m to €4.45m.
Pay to directors increased from €300,000 to €400,000 last year.
Shareholder funds at the end of 2022 totalled €13.12m. The group’s cash funds increased from €4.97m to €5.67m.
Rent paid by the company to director, Brendan O’Hagan for the year totalled €490,000.
Reporting by Gordon Deegan
