Ben Dunne gyms swing back into profit as owner says ‘paying rent is a mug’s game’

The business returned to profit following Mr Dunne shutting down six of his 12 gyms after exiting rent deals for the various premises.

In an interview, Mr Dunne remarked “paying rent is a mug’s game”.

He said: “My own business has shrunk dramatically but there was a very good reason for that as we took a view on rents which were crazy.”

Mr Dunne said turning around the business involved hard work.

He said: “I didn’t play golf for three years while all of this was going on. When your business is in trouble something has to give and you can’t play golf three days a week with your business under the cosh – well I couldn’t do it anyway.”

He said the matter of his golf handicap is “a minor detail” in such circumstances.

Mr Dunne said the business today consists of six gyms and he confirmed he is eyeing opportunities to expand again.

“We have a very strong balance sheet, no borrowings and plenty of cash. We want to expand but not expanding anywhere where we have to pay rent.“

Mr Dunne said any new gym premises will be purchased.

He said during the Covid-19 pandemic, his gym business “was caught badly” with the costs associated with its rented premises.

Mr Dunne said only two of his gyms today are rented properties but they are “capped and collared”.

"Rent can only go up by 2pc and can only drop by 1pc and we have break clauses in our favour,” he said.

Mr Dunne said in the 12 months to the end of last May the company recorded an operating profit of €3m after making an operating loss of €3m in the prior year.

“There is no fun in losing money, it really becomes hard work,” he said. “We have had a huge swing-around. Any business that swings around from making big losses to making a profit – you would be very naive to say you are not happy with that.”

The closure of six gyms means membership numbers have halved to 25,000.