Saudi's Leejam presses ahead with new gym openings after COVID-19 closures

The Saudi-based company has announced its third UAE gym opening since lockdown after losses of $22.8mln in H1 2020

  
People exercise at a gym while maintaining social distancing as government eases lockdown restrictions amid the coronavirus disease (COVID-19) outbreak in Dubai, United Arab Emirates June 10, 2020. Image for illustrative purposes.

People exercise at a gym while maintaining social distancing as government eases lockdown restrictions amid the coronavirus disease (COVID-19) outbreak in Dubai, United Arab Emirates June 10, 2020. Image for illustrative purposes.

REUTERS/Abdel Hadi Ramahi

Leejam Sports Company (Fitness Time) has announced the opening of a new ladies’ fitness centre, its third since gyms have been able to reopen after a three-month enforced closure due to COVID-19.

The new 1,270 sq.m facility, in Al Mamzar, Dubai, will operate under the brand Fitness Time – Ladies, and brings the total number of gyms operated by Leejam in Saudi and the UAE to 135.

In a statement to the Saudi stock exchange, Tadawul, the company said: “This Center is the third one to be opened after the company was allowed to reopen its Fitness Centers on 21st June 2020 following the precautionary closures of all private fitness centers to combat the spread of Covid-19, since 15th March 2020.

“The adverse circumstances of the Covid-19 pandemic have disrupted operations and economic activities around the world and led the company’s fitness centers to be closed for more than three months. Despite that, Leejam Sports Company has successfully opened three Ladies Fitness centers during the last eight days.”

Profit and loss

In its H1 2020 financial report, the company posted losses of SAR 85.6 million ($22.8 million), compared with a profit of SAR 88.1 million ($23.5 million) in the same period in 2019.

The company said it expected to face difficulties in raising funds relating to financial instruments, and that Covid-19 had materially affected its business, but it expected the situation to improve.

However, if the Covid-19 pandemic is prolonged, it will have an effect on the future business performance and impairment assessments of the company’s non-current assets.

“Leejam’s management continues to monitor the situation closely,” the financial statement said.

The company said it would make further announcements about more gym openings in the coming weeks.

(Writing by Imogen Lillywhite; editing by Daniel Luiz)

imogen.lillywhite@refinitiv.com

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© ZAWYA 2020

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