Ben Dunne shuts half his gyms due to impact of Covid-19

Gyms in Lucan, Jervis Street, Beacon and Sandyford in Dublin along with Navan and Waterford have closed.

Businessman Ben Dunne has completely shut down half the number of gyms in his gym group due to the business impact of Covid-19.

He described the business impact on his gym business as ‘horrendous’ with the number of gyms reduced from 12 to six. “I’ll give you an insight into what Covid has cost us. Our revenues are less than 50 percent of what they were pre-Covid.” He said that the business was heading towards €13m in revenues pre-Covid “and in the current year we are heading towards €6m”.

Mr Dunne said that in the group's current fiscal year to the end of May “we will make some money”.

He said: “I have lost an awful lot of money but we have swung away from that situation and we are making a profit again”.

Mr Dunne said that the group’s new financial year starts in June “and we are forecasting an increase in profit again”. He said they closed gyms in Lucan, Jervis Street, Beacon and Sandyford in Dublin along with Navan and Waterford.

Ben Dunne: 'We were making operating profits of €6m a year - in my lifetime we won't be back at €6m.'

“I find it very fortunate that I am standing, I am in business and I am not losing money.” 

Mr Dunne said that over the next three years he does see business improving at his slimmed-down gym group compared to how it is doing now. “We were making operating profits of €6m a year - in my lifetime we won't be back at €6m.

He added: “We won’t be able to get back to that because we have half the number of gyms and to try to get money is next to impossible from the banks and if I could I wouldn’t want to because I don’t like borrowings."

Mr Dunne said that he is exploring the addition of kids’ zones to some gyms to increase revenues. He said: “It is survival of the fittest now.” He made his comments when asked to comment on new accounts lodged by his Barkisland (Developments) Ltd which show that revenues plunged by 91 per cent or €5.17m from €5.66m to €494,840 in the 12 months to the end of May last.

Barkisland - which accounts for a number of gyms in the group - recorded a pre-tax loss of €1.55m and this followed a pre-tax profit of €1.2m in the prior year.

The accounts show that membership income plunged from €5.22m to €482,448. The loss takes account of non-cash depreciation charges of €1m.

The business received Government Covid-19 grants of €601,295 during the year.

Mr Dunne has ploughed €13.67m in interest-free loans into the business and last year the net amount advanced by him was €2.3m.

A note attached to the accounts states that Mr Dunne has confirmed that he will not seek repayment of his loan until such time as the company is in a position to pay and that funds will be available to the company for the foreseeable future.

Barkisland’s accumulated profits at the end of May last totalled €12.76m. The value of Barkisland’s tangible assets amounted to €28.9m.