LONDON (ShareCast) - (Sharecast News) - The Gym Group said Rio Ferdinand would join its board as the company posted a near halving of revenue in 2020.
Ferdinand will start as a non-executive director on 1 February along with online health executive Wais Shaifta. The former Manchester United and England star will help steer the company through the Covid-19 crisis, which has shut all the budget gym operator's venues.

Gym Group's annual revenue fell to £80.5m from £153.1m in the year to the end of December as the budget gym operator was forced to close its gyms for 45% of the year. The company said it was on the lookout for more sites to open gyms.

The company said it expected to burn through about £5m of cash a month during the current closure period - about £1m less than during the November lockdown thanks to government grant support.

Gym Group said it had plenty of liquidity and was in talks with banks to review covenant tests for its £100m lending facility. The shares rose 1.3% to 220.79p at 09:56 GMT.

Gym Group closed 162 of its 183 gyms in December as restrictions tightened and all its sites have been shut since the latest lockdown was announced on 4 January.

Membership fell to 578,000 at the end of December from 794,000 a year earlier with no 2019 students left. Membership subscriptions are frozen so that members do not pay while gyms are closed.

Gym Group chair Penny Hughes said: "At The Gym Group we are planning to restart growth as we serve a changing society that is significantly more conscious of the benefits of good health and well-being. I am delighted that Rio and Wais will join our board bringing real insight to our purpose and our colleague and membership profile."

Since retiring from playing Ferdinand has launched business ventures and appeared as a sports pundit. In 2017 he appeared in a TV programme talking about how he coped with the death of his wife. His Rio Ferdinand Foundation works with young people to help them progress in life.

Ferdinand said: "This is an exciting new step for me. I have been impressed at how The Gym Group is breaking down barriers to fitness by providing high quality gym facilities at low prices with a welcoming and inclusive culture."

Senior independent director Paul Gilbert will retire at the annual general meeting and the company is reorganising board committee responsibilities, Gym Group said.

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