Losses at Irish gym management software company Glofox last year increased more than two fold to €25m as the company continued in its start-up phase and scaled up its business.
Last year, US tech group ABC Fitness Solutions acquired Glofox for upwards of €200m.
Glofox was only founded in 2017 by Conor O'Loughlin, a former scrum-half with Connacht Rugby, Anthony Kelly and Finn Hegarty.
The firm provides a complete booking, payment membership solution using a cloud based management platform for the health and fitness industry.
Now, new accounts for Zappy Ltd, trading as Glofox, show that losses increased by €14.65m or 140% from €10.4m in 2021 to €25.06m last year.
Revenues at the company more than doubled, rising from €8.33m to €18.2m.
The chief factor behind the losses was administrative expenses increasing from €14.6m to €35.18m.
On the company's going concern status, a note states that "the company is at a start-up phase and is loss making as it continues to scale the business".
The note adds that the company "has sufficient cash reserves to continue to trade for the foreseeable future based on it receiving support from its parent undertaking".
The directors state that "the company expects to incur operating losses in the coming year as the company continues to scale the business".
The directors state that the company "offers a compelling proposition to its customers".
The company recorded an operating loss of €23.95m and interest costs of €1.1m resulted in the pre-tax loss of €25.06m.
Numbers employed increased from 80 to 85 and staff costs rose from €5.88m to €10.56m that included a €2.34m cost concerning "on cancellation of shared phased options".
Directors' remuneration increased from €460,000 to €530,211.
The accounts disclose that the company has parked €3.8m in the Government’s "debt warehousing" scheme arising from the business impact of the Covid-19 pandemic.
A note states that "the company expects to negotiate a payment plan and begin repayments per the requirements in 2023".
The company’s accumulated losses last year more than doubled from €24.65m to €49.7m.
However, the firm's shareholders' deficit reduced from €6.7m to €4.46m after receiving a capital contribution of €23.05m during the year.
A detailed breakdown of the company's costs show that legal and professional costs last year increased from €529,655 to €2.65m while marketing and events costs rose from €2.05m to €3.49m.
Inter-company charges increased almost four fold from €4.39m to €16.2m while computer costs more than doubled from €442,025 to €912,804.
Sales referral and franchise fees also increased sharply from €207,043 to €584,165.
Reporting by Gordon Deegan
