CityFitness posts profit in 2016
Wednesday 11 January 2017 10:30 AM
CityFitness posts profit in 2016 despite personal training earnings falling
By Rebecca Howard
Jan. 11 (BusinessDesk) - Cityfitness Group, a unit of Canada’s #1 Nautilus Fitness & Racquets Centres Group, reported a lift in net profit in the year to March 2016, turning around the prior year’s loss.
The company, which operates 26 gyms across New Zealand, said its net profit for the year was $557,000 versus a loss of $3.9 million in the prior year. Revenue dipped to $30.9 million from $33 million in the prior year on a slide in personal training fees.
Operating expenses fell to $28.7 million from $34.7 million in the prior year and taxation expenses were lower at $230,000 versus $1.6 million.
While net profit was back in the black, the independent auditor’s report by BDO Wellington noted the company’s current liabilities exceed its current assets by $5.44 million, with current assets at $1.4 million. In the prior year, current liabilities exceeded current assets by $4.9 million.