The Gym Group PLC (LON:GYM) has announced that all its venues are currently open, though it has lost 2% of members, down to 870,000 in total since the beginning of March as the coronavirus pandemic takes its toll.
Daily gym usage is decreasing and new joiner numbers are “marginally” lower than expected, the FTSE 250-listed added as it reported its full-year results.
READ: The Gym Group's revenues power ahead as membership rises
The low-cost gym chain said it has “drawn up plans” to cope with the coronavirus impact, including pausing its pipeline rollout, and added that it will follow advice from Public Health England.
In the year to 31 December, 2019, The Gym Group said its membership grew by 9% to 794,000, helping revenue jump 24% to £153mln and its pre-tax profit rise by 36% to £14mln.
The Gym Group had proposed a full-year dividend of 1.6p per share, 19% higher than 2018, but the firm said it is expecting to drop it.
An analyst at the Share Centre said demand will pick up where it left off once the coronavirus crisis is over.
"The group remained relatively highly levered which has helped contribute to their impressive growth over the years... their business model remains strong," Joe Healey said.
Shares rose 10% to 90p on Thursday morning.
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