Gym Group PLC (The) Banking Update (9849I)
December 17 2020 - 2:00AM
UK Regulatory
TIDMGYM
RNS Number : 9849I
Gym Group PLC (The)
17 December 2020
17 December 2020
The Gym Group plc
Banking Update
Revised Bank Facility
The Gym Group plc ("the Company"), the nationwide operator of
183 low cost gyms, announces today it has signed an amendment ("the
Amendment") to the GBP30 million extension to its banking
facilities, put in place with HSBC, Natwest and Banco de Sabadell
in June 2020 as part of the Company's COVID-19 contingency planning
(the "Extended Bank Facility"). This Extended Bank Facility forms
part of a Revolving Credit Facility ("RCF") totalling GBP100m of
facilities provided by the three banks.
Under the Amendment, the term of the Extended Bank Facility will
be extended by six months from December 2021 to June 2022 at which
point the terms of the original GBP70 million RCF will apply until
its termination in October 2023. The EBITDA covenant tests of the
Extended Bank Facility have been amended to take into account the
impact of the recent second national lockdown period in which most
of the Company's gyms were closed. The new covenant tests also
provide a degree of flexibility for further potential closures not
yet envisaged.
Re-opening of gyms
As of 12 December 2020, the Company has all of its gyms open. On
2 December, all gyms in England were re-opened, following a 4-week
national lockdown, including our sites in Tier-3 locations. In
Scotland, nine of the Company's 13 gyms were closed for three weeks
as a result of local restrictions but these gyms re-opened on 12
December. All three gyms in Wales are currently open.
As part of the acquisition of 13 sites from easyGym in 2018, the
Company acquired two sites that had limited remaining terms on
their leases: London Oxford Street and Birmingham Kings Heath. The
Company has now agreed new leases on both sites and will be paying
the previously agreed contingent consideration in instalments up to
the end of 2021. Following a major refurbishment, the London Oxford
Street gym re-opened on 2 December.
Launch of the Gym Group's Kickstart Programme
In December the Company welcomed the first 30 recruits onto its
Kickstart programme; a scheme supported by the UK Government to
encourage 16-24 year-olds into new employment opportunities and
training. The new trainees will be working and learning in gyms
alongside gym managers and at the same time studying for their
personal training qualifications with a view to becoming Fitness
Trainers in the Company in due course.
Notification of Trading Update
The Company will be issuing a pre-close trading update on 15
January 2021.
Richard Darwin, CEO of The Gym Group, commented:
" We are pleased to be welcoming members back to our gyms again.
The Government's decision to keep gyms open in all tiers shows the
important role the sector has in fighting Covid-19 and keeping the
nation active. With the extension on our bank facilities secured
and good levels of liquidity, The Gym Group is well placed to
emerge from the COVID-19 crisis in a strong position."
For further information, please contact:
The Gym Group: via Instinctif
Richard Darwin, CEO
Mark George, CFO
Instinctif Partners:
Matthew Smallwood, Justine Warren 0207 457 2005/10
Numis:
Luke Bordewich, George Price 0207 260 1366
Peel Hunt:
Dan Webster, George Sellar 0207 418 8900
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END
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