Thank you, Zoe. Good morning, ladies and gentlemen, and thank you for joining us on the conference call today for Viva Leisure's financial results for the year ended 30th June 2021. I am joined today by our CFO, Mr. Kim Gallagher. Yesterday, aftermarket, various documents, including an investor presentation, were uploaded to the ASX, and we will be referring to these today during our presentation.
This is Veeva Leisure's 3rd set of full year results since listing on the ASX in June 2019, and what a financial year it was. I hope that everyone is doing well and managing during these continued disruptive times to our lives. The agenda for today's presentation, I will provide a quick rundown on the full year performance highlights. I will then pass on to Kim, who will run through the financial results. After which, I will provide some history on the results and how COVID has affected them, both for FY 2021 and so far for FY 2022.
I will then provide a very quick overview and update on our different brands and segments before going into some Q and A. At the back of the investor presentation on Page 34 is a reconciliation of the profit and loss against AASB 2016, which I am sure you are all familiar with. We will not be going through this today. However, if you have any questions, please contact us directly or feel free to ask a question at the end of the presentation. I'm on Slide 5.
I mentioned this in last year's presentation, however, it is important to mention it again. COVID has again significantly affected the Health Club industry in FY 2021 as it did in FY 2020. It has also impacted the start of FY 2022. Further details on the actual impacts will be discussed later in this presentation. Notwithstanding the significant impact for the financial year, Veeva has managed to achieve and increase all in all key metrics over the previous financial year.
The full FY 2021 result is an outstanding result, and I am proud of our entire team of over 1600 members for what they have achieved. Notwithstanding the impacted start of FY 2022, I believe the business is in an excellent position to capitalize on the foundations we have established over the past year and to continue to grow from here. Veeva Leisure has grown from a simple Canberra based operation to now be the 2nd largest health club owner in Australia. Moving to Slide 7 of the presentation. A quick high level summary of the key metrics, which for the year tell us that membership is up 33.8% over the previous year.
Our locations increased 45.5% over the previous year. EBITDA has nearly doubled from the previous year with a 97% increase, and revenue has increased 104.8% over the previous year. Moving to Slide 8, performance highlights. Revenue for FY 2021 was $83,700,000 increasing from $40,900,000 in the previous corresponding period. EBITDA was $11,900,000 ex AASP 16, up from $6,070,000 in the previous year.
This represents a 97% increase from FY 2020. Slide 21 of the presentation, which Kim will go through, has further details on the impacts of EBITDA post our outlook originally issued on 25th May 2021. It was great to see EBITDA and revenue essentially doubling from the previous corresponding period. This reaffirms what we already know in that more Australians are realizing that fitness is essential to their physical, mental and emotional well-being. Also on this slide are Veeva owned location statistics and consolidated statistics when taking into account the Plus Fitness franchise network.
These stats remain unchanged and are confirmed from those presented in our previously bi monthly update issued last month. Moving to Slide 9, operational achievements. There were 115 Viva Leisure owned locations at the end of financial year. Today, we have 117 locations. A key metric on this slide is that the ACT now represents approximately 40% of Veeva Leisure locations around Australia.
Previously, over 70% of the portfolio was based in the ACT. Our two key areas of growth focus remain Queensland and Victoria, which for FY 2021 increased locations by 50% and 2 40%, respectively. Moving to Slide 10, locations. A version of this slide was presented in our recently issued bimonthly update. The addition to this page is the column on the right hand side, which shows our original budget had forecast 313 locations by the end of FY 2021, and we ended the year with 3 0 9 locations, essentially on target notwithstanding the disruptions experienced during the year.
Moving to Slide 11, acquisitions in greenfields. During FY 2021, Viva Leisure opened 36 locations, made up of 21 greenfield locations and 15 acquisitions, of which 4 were Plus Fitness franchise acquisitions. It is important to highlight the investment during the year in plant and equipment, greenfield rollouts and acquisitions totaled just under $55,000,000 and Kim will provide some more details on that. This is a significant investment. The largest investment for us during the year was the acquisition of Australian Fitness Management, the Plus Fitness Master Franchise OR in August 2020 for 18,000,000 This investment is more than Viva Leisure has spent in any prior years and helps to build a strong foundation into FY 2022, notwithstanding the slow start due to the lockdowns.
I will now pass on to our CFO, Mr. Kim Gallagher, to present the financial results commencing on Page 13.
Thank you, Harry, and good morning all on Flood 13. Firstly, the full year results presented throughout this presentation are predominantly based on a AASB 16 basis, which is also consistent with the prior year. Looking at the profit and loss. During the financial year, the mandated restrictions on our clubs and members has again hampered the group's overall results. The continual intermittent and at times unexpected shutdowns had the following impacts on the group.
It slowed the average time to profitability of our rollouts considerably as the new member take up momentum was continually hampered. And this put continued pressure on the margins as well. The uncertainty made it difficult to plan and execute meaningful cost savings, particularly when the short term snap lockdowns with an extended often with only a day's notice. We were on track to meet our guidance numbers put out in May until we hit the snap closures of clubs across Queensland, New South Wales and Victoria, which significantly impacted the month of June result. Despite this, we achieved revenue growth of 104.8% over the prior corresponding period.
This includes the results of Plus Fitness for the first time and for the bulk of the financial year. The revenue growth excluding Plus, which contributed around $8,500,000 of the $83,700,000 total revenue, was 84% for the Viva Clubs, which is a great top line result. Operating costs have increased largely due to the impact of 36 additional sites. For example, rent costs alone are up by approximately $12,500,000 The inclusion of the Plus Fitness operations also added nearly $6,000,000 to the cost base for the period of ownership. The impact of all this is a 97% increase on the EBITDA line, which is a fantastic result.
Finally, having invested a large capital works program of the rollouts and upgrades, the D and A expenses increased accordingly. In summary though, the good news is during the period July 2000 to June 2021, total member numbers have grown by approximately 30,000 members. We have opened or acquired 36 clubs, including 2 significant acquisitions, the Plus Fitness Master franchise and the Pinnacle Group. Performed in line with expectations for the period of ownership on both revenue and EBITDA lines. And during the year, we've rolled out an additional 21 clubs comprising 10 Health Clubs and 11 HIT Republics.
In other words, once we spring from the lockdowns, we have a very robust foundation to build on. We'll discuss this in more detail on the upcoming slides. I'm moving on to Slide 14. On this slide, we can see the revenue journey across FY 2021. In July, we were just coming out of the 1st significant lockdown period and but we still had restrictions in place.
There was still some hesitancy of members to return to the gym. This then continued to build into December as member confidence started to return. In the second half, we've faced a constant disruption of closed sites, which made it extremely difficult to gain any momentum. What this shows, however, is that moving forward, we have a very strong base of revenue with which to build. Excluding the June lockdowns across the Eastern states where we're heading for over $9,000,000 in revenue for the month of June, which equates to an annualized $108,000,000 revenue base.
Moving on to Slide 15. As you can see, we had strong compound annual growth rates in both revenue and EBITDA across the period 2016 to 2021 being 35% for revenue and 46% for EBITDA respectively, including significant revenue and EBITDA growth for this financial year. EBITDA margin has been impacted for several reasons. The main being that The average time to profitability of our rollouts was much slower than normal, increasing to more like 3 to 4 months in some instances rather than 1 to 2 months as normal. As the new member uptake momentum was continually hampered through the periods of lockdowns, What this means is that we're paying full rental and wages from when we opened, but without the supporting members and therefore revenue base.
In addition, the uncertainty made it difficult to plan and execute meaningful cost savings to counter this loss of momentum, particularly when short term snap lockdowns were then extended, often with only those noted. Moving on to Slide 16. A quick look at the member growth profile between FY 2016 and FY 2021 shows that we had pound annual growth rate of 62% across this period. This includes a Plus network of franchise members. Excluding Plus members, the CAGR is 36.3% across the same period for the Veeva Clubs.
What is also interesting on this period, as Harry mentioned before, is the derisking of the Veeva owned locations club and member base from being predominantly ACT based. Total members in the ACT as a percentage of the group has now reduced to only 42%, down from around 77 when we IPO ed in 2019. The HIT Republic network also continues to grow now at 22 sites and with over 5,500 members. Moving on to Slide 17. This chart shows the bridge between the FY 2020 member numbers of 94,190 6 to the final FY 2021 member numbers of 126,006 for the Veeva Clubs and then the addition of the Plus Network acquisition and its growth across the period of ownership to bring the total overall membership base to just over 298,000.
What each cohort represents in this chart is clubs that were opened during the year and their contribution to growth across the current financial year. The exception for this is the 2019 clubs, which includes all clubs for 2019 and prior years. We then separately show the numbers for members of acquisitions. For perspective and in percentage terms. The 2019 clubs grew at 9.2% and the FY 2020 clubs grew at 87.1%.
So these are organic growth from rollouts, I. E. They exclude any clubs acquired in those years. In addition, with the mandated club closures in late FY 2020. We lost significant momentum in our ramp up of new members, so it's not surprising to see strong growth during FY 2021.
Similarly, for our FY 2021 clubs, we added 6,700 members from our 21 rolled out clubs across the year. In addition, the major acquisition of the Pinnacle Group, 6 clubs added approximately 7,500 members during the year. Moving on to Slide 18. Similar to the previous slide, this chart shows the bridge between the FY 2020 revenues and the final FY 2021 results. Again, for perspective and in percentage terms, The 2019 clubs grew at 23.6 percent and the FY 2020 clubs grew at 3 37%.
The reason FY 2020 is so high is that many of the clubs were new and were closed for the last 3 months of the FY 2020 financial year. As previously mentioned, the good news is Viva Clubs contributed 84% of the total revenue growth out of the 105%. Moving on to Slide 19. A strong opening cash balance and a successful $30,000,000 cap raise in December provided us with the opportunity to aggressively pursue rollouts and acquisitions. As you will see on the cash flow slide coming up next, approximately £55,000,000 was deployed largely for that purpose.
£27,000,000 was spent on acquisitions and you can see the increase in the intangibles balance predominantly on the Plus Fitness network for $18,000,000 and the Pinnacle Group for 6,200,000 In addition, plant and equipment assets have increased significantly off the back of acquisitions, rollouts, site upgrades and maintenance CapEx. The total investment in rollouts for the 21 sites during the year is CAD 15,000,000 Debt has remained under control with total of $25,500,000 in debt, up slightly from June 2021 and it includes $15,500,000 in equipment lease finance and £10,100,000 in the CBA senior facility. I'm on Slide 20. Similar comments to the balance sheet regarding the deployment of the opening cash balance and the inflows from the capital raise undertaken in December 2020, where we can see the significant outflows for the acquisitions and rollouts. The lease principal reduction in line includes the impact of payments of equipment leases and rent payments on our property less any finance charges.
Moving on to Slide 21. This slide is a brief summary of the reconciliation of guidance to the final audited results. Veeva provided guidance to the market on May 25, which discussed the following ranges: revenue range of $81,000,000 to $83,000,000 trading EBITDA range of $13,000,000 to $13,500,000 excluding one off costs EBITDA margin of 16.5 percent to 17.5%. The final results showed that we beat revenue guidance despite the unforeseen lockdowns in late May and throughout June. Trading EBITDA finished at £11,950,000 but with one off costs of $1,100,000 and the impact of lockdowns in June estimated at 600,000 So this equates to approximately $13,600,000 on a trading EBITDA basis.
The margin when excluding the one off costs and lockdown impacts is calculated at 16.2%. Thank you. I'll now hand back to Harry.
Tim? Moving to Slide 22, outlook. This section of the presentation provides an insight into the COVID-nineteen interruptions and impacts during FY 2021 and FY 2022. Moving to Slide 23, COVID-nineteen Interruptions. The key information from this slide is to show that during FY 2021, Veeva had 2 out of 12 months where all locations were open.
During parts of other months of the year, we may have had locations open, but with significant restrictions and additional cost implications such as cleaning and COVID marshals. Interestingly, the 2 months where we were able to trade without restrictions being December 2020 April 2021,
are the
2 months of the year that have the most public holidays. So they were still affected the enrollment momentum. Unfortunately, we still have not had one full year of uninterrupted trade since listing on the market. Moving to Slide 24, interruptions by days. What this slide indicates is the percentage of interruptions our facilities have faced since the start of the COVID-nineteen pandemic.
Notwithstanding that this is outside the reported financial year, we thought it was important information to highlight. The way this chart works is that each club is 1 unit for every day that it was either allowed to open or mandated to close. This takes into account new club openings during the period, for example, if a club opened during the period, noting that we had 36 clubs opened during the financial year. Our main market, the ACT, has suffered 11% of days unable to trade since the 23rd March 2020, when the mandatory government lockdowns commenced. This is the best result out of all the states and territories.
New South Wales has not been permitted to trade for 20% of the period and Victoria 41%, followed by Queensland at 16%. The start stop lockdowns caused significant disruption to member enrollment momentum. The good point out of all of this, however, is that when we are permitted to trade and build up momentum, we do see good traction and interest in members getting back into the facilities. What this tells us, as mentioned earlier in the presentation, is that the Australian population considers Health Clubs as essential to their physical, mental and emotional well-being. This is further confirmed in our previously issued bimonthly report, which shows that 11 out of 12 FY 21 months had net membership growth, notwithstanding these interruptions that were caused by COVID lockdowns.
Moving to Slide 25, COVID impacts for FY 2022. Following on from the previous slide, this slide provides some information on the impacts we have faced during the commencement of FY 2022. Internally, we are forecasting that the New South Wales lockdowns will continue until November, whereas we are optimistically expecting Queensland, Victoria and the ACT to open for trade from early to mid September. Obviously, this is a wait and see exercise for us. To that end, we have provided a similar chart as presented on the previous slide to show the closure by units and days for FY 2022 year to date.
You will note that New South Wales has been closed for 79% of the financial year. Whilst Metro New South Wales has been closed for 100 some of the time during this financial year, this number reduces to 79% for our locations as regional New South Wales was open for a short period of time. These figures are not very encouraging for the start of the financial year. As of today, we have 99 out of our 117 locations unable to trade due to mandated COVID lockdowns, with only 18 locations able to trade, mostly in Queensland. Further to this, we have attempted to provide some guidance for our investors on the financial impact of these closures during the 1st 2 months of the financial year.
What we are seeing is an EBITDA impact or loss of about $4,200,000 for the year year to date that is. This is essentially similar to the cash burn during the period, with full rentals being paid and very little to no income being received from lockdown locations. Assuming the assumptions on the left hand side of the slide are correct and with New South Wales continuing in lockdown until November, as estimated, That will present us with a further $3,600,000 cash burn and EBITDA loss. What we are doing to combat this is extreme, but is necessary. We have had to temporarily stand down all staff where possible and appropriate.
For example, at locations we simply to not trade. We simply do not have any work for our team at these locations to perform. Secondly, we have put a freeze on all capital expenditure, including our rollouts until we have some clear air and normality resumes. And thirdly, we have put a freeze on acquisitions that are not already committed. At this stage, we have 4 acquisitions which we will complete over the next 60 days that are committed, agreed and signed off.
We have other acquisitions which we simply will need to put on hold for the short term. Preservation of cash is key during this period for various reasons, but most importantly in the event that our forecasted lockdowns are underestimated and extend for a longer period than we are forecasting. Part of the program of preservation of cash is to work with our landlords to defer rental payments where possible. It is not prudent cash management for us to continue paying our rentals for locations where we have not traded for over 2 months. We trust our landlords who were receptive through assistance during the past 15 months will again be receptive.
We're happy to respond to any questions in regard to this during the Q and A part of our presentation. I'd now like to give a quick update on our brands and segments. For those investors who follow our bimonthly update, Some of the information won't be new, but there are some interesting takeouts that we thought it was appropriate. Moving to Slide 27, Publime Health Clubs. Our key brand, ClubLime, has continued to grow.
We currently have 73 branded ClubLime Health Clubs in Australia. This makes ClubLime brand, the 2nd largest non franchise health club brand in Australia. This is an excellent achievement. In addition to the 73 branded Club Lyme Health Clubs, we have 4 other brands, totaling 11 other health clubs that are in the process of rebranding to Clubline. 6 of these clubs are Pinnacle, which we acquired in February this year.
Subject to when the lockdowns permit us to continue our rollout and acquisition strategy, we still hope to achieve 100 Clubline locations during this 3 year. To put that into perspective, no other single non franchise health club brand has ever achieved 100 clubs in Australia. Fitness First peaked at 96 clubs in 2011 before reducing to its current level of 60 clubs today. Achieving 100 Clubs is not simply a race for us. It provides us with better operating synergies and we'll work to cement our position as one of the most recognized health club brands down the East Coast of Australia, which assists us with marketing and member acquisition.
Moving to Slide 28, ground up. It was important to bring this slide up early as we see this brand as key to our future growth plans. Our first ground up location in Belconnen opened in the 1st week of July 2021. In the 1st 6 weeks of trade, we have secured over 400 members, with an average yield of nearly $50 per week per member. This is over 3 times the average revenue per member of our Health Clubs.
What we have also seen is that 60% of the membership base are existing members upgrading their membership to include Ground Up. We consider these members loyal to our brands and concepts. These additional 250 members provide the group with an additional $300,000 of annualized revenue from their upgraded membership, but more importantly, provide these members with a unique membership offering, which is unable to be replicated by any single operator in Australia. We have also seen nearly 170 members join our 1st Ground Up location completely new to our brands and this is also encouraging. The second location with Ground Up has been secured and is currently in planning, and the third location is currently under negotiation.
Once this concept is refined in the ACT, we will start to roll it out together with our hit republic locations across the existing club line network around the East Coast of Australia. Ground up locations can also operate independently and did not require a hub and spoke configuration, and this is something that we will continue to test. For reference, these locations cost to build approximately $400,000 in fit out due to the nature of the fit out and the yoga and Pilates theme and a further $200,000 in equipment, mostly Pilates beds. This particular location is currently run rating at $950,000 of annualized income in just 6 weeks of trade. What is also important to highlight is that this particular initial location utilized existing Health Club space, which we repurposed in Belconnen ACT, so no additional rental charges in that regard.
The location is completely independent of the health club in terms of entry, design and facilities, but shares the same building. We are extremely excited about what the ground up concept has achieved in such a short period of time, and we look forward to how that can positively affect our average revenue per member in retention as the brand grows and members upgrade to this offering. Moving to Slide 29, Hit Republic. Our Hit Republic concept has gone from strength to strength. Over the FY 2021 year, we increased location from 13 to 22, at the same time increased the average members per club from 270 to 276.
To put that into perspective, an additional 6 members per club over 22 clubs provides us with an additional $220,000 of EBITDA as there are no additional costs to support these additional 6 members. As the portfolio grows and as we continue to increase the average members per club, This will continue to grow. As these clubs matured, we have also been able to crack the magic 50% 4 wall EBITDA margin, and these clubs are now trading on average at 50.6 percent EBITDA margin. Moving to Slide 30, fit and fast. This will likely be our last update for Fit and Fast as we plan to retire the brand as soon as the last two locations are rebranded.
To remind investors, we acquired 13 locations in February 2020, just before COVID hit. 11 locations have been rebranded and upgraded as part of their transition to the Clubline brand. Focusing our attention now on the Pinnacle brand. As mentioned in our previous updates, we have not yet commenced the migration of this brand to the Club LINE brand as we wish to operate with a watch and learn approach to understand any benefits from the Pinnacle acquisition we may have been able to duplicate in the existing Clubline network. In addition, the direct depot facility was contracted and was not able to be migrated as any earlier.
This is one of the main synergies available to us. We now expect the Direct Debit facility to generate savings of over $250,000 per annum for the group once migrated to Veeva facilities. This migration is now expected to occur in or before November 21. At the latest when the contract with the current provider expires. Moving to Slide 31, Plus Fitness.
As mentioned in our bimonthly updates, Viva Leisure is now the owner of 4 plus fitness locations as of the 30th June 2021 and 5 locations as of today. We expect to settle on one more location later this month and one the following month. There has been a slight delay these have been slightly delayed further due to the New South Wales lockdowns. There was no real benefit for us to acquire these locations when we simply could not trade. From the Australian Fitness Management perspective, the master franchisor of the Plus Fitness network, we have also implemented some changes.
I now introduce you to the Chain Collective Group. The Veeva Board took into consideration feedback from franchisees. That feedback centered around the sharing of information between Veeva operational staff and Plus Fitness operational staff. To keep both teams separate, we recently introduced a new independent Board to manage the franchising division of Veeva, and this is where the Chain Collective Group comes in. Chain Collective is a 100% owned subsidiary of Veeva.
It has a majority independent Board, hand picked after an extensive recruitment process. The Board comes with extensive fitness franchising experience with Arthur McCall, an experienced NED, and executive who has worked in Europe and Australia in fitness and in particular franchising of fitness brands. He is supported by experienced NED, Peter MacGregor and myself as the Viva Leisure representative. Chain Collective Group has a simple mandate and that is to grow the franchising division of Viva Leisure with the introduction of new concepts, brands and to grow the Plus Fitness network in line with previous expectations. Gordon Martin, who we introduced a few months back, now reports directly into the Chain Collective Group Board.
This concludes the presentation part of the investor call. It is important to highlight that notwithstanding all the doom and gloom about COVID and how it has significantly impacted this business, we still managed to double EBITDA from FY 2020 to FY 2021. We have continued to build a strong base so that when we do get clean air and able to trade in all locations, we know the business will start to exceed even our expectations. What is evident and as highlighted in our presentation is that Australians understand the importance of health and fitness. It simply is not possible to find an individual that does not value their health and fitness or does not want to be healthy.
What we are seeing with members quickly returning to our facilities by way of enrollments and visitations is not limited to Veeva Leisure in Australia. As can be seen from our listed peers in the United Kingdom and the United States as well as those listed gym groups in Europe, the return to Health Club membership is peaking and returning at a much faster pace than it did prior to the pandemic, and this is occurring all over the world. I'm confident in our strong product and service offering and believe in our unique position of having 1st mover advantage as well as currently being the only consolidator in the highly fragmented Health Club market. We will continue to capitalize on both these strengths moving forward. We would now like to open up for any questions.
Thank Your first question comes from Nick McGarrigle with Barrene Joey. Please go ahead.
Good day, guys. Just a question around the current environment, which is challenging with lockdowns. Can you talk about, I guess, the capital position of the business? What kind of commitments that you've got on greenfields and acquisitions that can't be avoided? And how you think about the balance sheet evolving over the next 6 months, which I guess is likely to see these lockdowns continue for at least the next couple of months?
Yes. Thanks, Nick. I'll take the first part of the question and then Kim can talk about the rest. We have sites committed as we have previously advised in our bimonthly update. Those sites are in different stages of commitment, I.
E, heads of agreement signed, leases signed, development applications in. We're still forecasting to continue to roll out some of these sites, but we are slowing down that rollout between now and Christmas to see how it goes and obviously look at preserving cash. But those that are in have commenced fit out, we're still continuing with those. I think there's 3 or 4 of those that will likely open between now and Christmas, but they've been in different stages of opening and taking into account the cash preservation strategy that we're looking to implement. I'll pass on to Kim for the next part of that question.
Okay. Thanks, Nick, and thanks, Harry. So obviously, we've modeled out some sensitivities around the ongoing COVID impacts and The results that we have prepared are I mean, obviously, we've taken as the base case the numbers that we've included on Slide 25 of the presentation, which Talks about closures of ACT Victoria and New South Wales and New South Wales going out to November. So we've modeled some sensitivities around that and probably taking an even more conservative approach by what happens if ACT shut for another month and New South Wales doesn't open until Christmas. We prepared obviously a financial forecast and then the cash flows that fall out of the back of that and we're quite comfortable that Even by the end of the financial year, we'll be okay from a cash balance perspective.
And these estimates that we've done also include paying 4 rentals for the year. So in other words, if we manage to discuss with landlords or defer some rental amounts in the next couple of months that they will be caught up by the end of the financial year. And secondly, it includes continuing to pay the full lease and debt repayment. So we've modeled all of that in. So to further bolster the cash position, we've got some options with our lenders who we anticipate speaking with this week, Which include potentially a moratorium on lease payments and debt payments which would be in the order of probably $500,000 a month implementation potentially of an emergency overdraft facility if we needed it, bearing in mind they offered us this in March, April, May June of 2020 once we hit the 1st major lockdown COVID period.
So there's no reason to expect they will not re offer it. As I have no doubt, there's a lot of businesses in the same situation we're in. It's not something as I said that we need, but if the bank have it available to us, it's always helpful to know that you have that backstop. And also we'll look at potentially increasing the level of our borrowings against the acquisitions that we've obviously undertaken. The modeling at the moment assumes that we pay cash for 100% of the committed acquisitions that we've got in front of us and cash for the rollout.
So in other words, accepting no equipment finance and going into further debt. So we'll obviously discuss that with them and again that will improve the cash position. And in addition As Harry mentioned before, we'd look at talking with our landlords and potentially deferring the rental payments in the lockdown site. From that perspective, we can weather the storm with a certain degree of comfort out till the end of the financial year from a cash perspective. And I guess it just depends on the erratic nature of the various state premiers as to how long we remain in lockdown.
I think it's important to note that our last month of the financial year in June, If we hadn't have had the lockdowns, we're heading for $9,000,000 worth of revenue. I mentioned that as part of one of the slides. If you consider that we were trading around about at that point somewhere between a 16% 18% margin, We're talking coming out of the blocks once all the lockdowns stop of hitting about $1,500,000 to $1,700,000 in for the 1st month of full reopening and that's just on the basis of the existing sites. In addition to that, the rollout sites that we did across the year. We had 21 of them.
Looking at the May results which was the last kind of full month of trade for all of those lockdown sites. We were generating just above breakeven. We were Small profit on a collective basis across all of those greenfield sites. So they are ready right now to start contributing some meaningful revenues and profits from the minute that we open up. So on the basis of as I said $9,000,000 was the run rate at June.
We've got greenfield sites rolling out, sorry, starting to come into profitability, which will start to increase revenue and therefore EBITDA. We've got options to talk to our banks to make sure that they'll look after us. And in addition, we can talk to our landlords. So from both I mean the profit perspective, it's As I said, completely going to be determined by when the state premiers decide that we can open up. But from a cash flow perspective, we believe that we can weather the storm out for many months to come.
Yes. All right. That seems fair. I mean, have you had any initial discussions with landlords about rental abatements? Is that something that you think you can is likely or not abatements, but actually rental discounts in commensurate with the reduction in revenue?
Harry, do you want to take that one?
We haven't started discussions with landlords yet. We just wanted to get this result out. We're up to date with all our rentals, so we don't need any assistance at the moment, but We'll start to talk to them from this week. There's no reason they won't share the pain, as they say, as they've done over the last 15 months and assist with deferred rentals. So we're confident we can get something out of that.
Cool. And then in terms of, I guess, leverage on the way out of this sort of what's going to be a challenging FY 'twenty How many what's the sort of greenfield and acquisition pipeline look like for FY 'twenty two? I guess you'll be trying not to spend more cash than you've already got committed. But there was obviously a target prior to this recent round of lockdown that sort of 68 clubs a year between the acquisitions and greenfields and buybacks. But do you think that that's maintainable into FY 'twenty three?
And how many do you think you'll get done in FY 'twenty two?
Look, if FY 2023 is a clean year where we've got 12 months of trade without lockdowns, we're confident we can reached those numbers. That's the numbers we forecasted previously. FY 'twenty two purely depends on what opens and when it opens. If ACT opens, that returns a large chunk of our monthly revenue and we trade really, really well. If ICT is delayed, it affects that, being 40% of our locations and 42% of our members.
So it just this is when we started to model it, there's just so many variables that come into play. It's difficult for us to pinpoint a number now and go, oh, we're going to open 20 locations this year because we don't know when we can actually start opening properly again due to these restrictions.
Yes. Okay. And in terms of just the progress of ground up, what do you think the Do you think the runway for that could be similar to a hit republic in terms of where they consider? Or is it potentially bigger than that given you don't feel like they need to between sort of full service teams in order to build membership?
You fit more people into a ground up June, so you don't need as many of them generally. So I don't think the rollout will be the same. So for example, I think we have 9 or 10 Republics in Canberra, but we would probably only put 4 ground ups in Canberra into perspective because people will travel for that type of unique experience more than they will the hit republic, which they prefer closer to their more convenient access.
Cool. I might let someone else ask some questions and then I'll come back otherwise. Thanks.
Thanks, Nick.
Thank you. Your next question comes from Nick Bazzle with Petra Capital. Please go ahead.
Hi Harry. Hi Kim. A couple of questions from me. The first one just on the CapEx you invested over the last year across acquisitions and greenfield. There's a bit of a step up between FY 2020 and FY 2021 in terms of that.
Could you give us a sense of what drove that particularly on the rollout side? I think it was 17,000,000 to 27,000,000
So the CapEx spend for the year, it was around $27,000,000 as calculated in the cash flow statement. The rollout portion of that was about $15,000,000 So when you consider that there were 21 sites opened $15,000,000 seems reasonable based on everything we've always said about the cost of rolling out sites. The difference there is that we didn't take on too much lease finance. We paid a lot of cash for most of the rollout program simply because we had significant amounts of cash on the balance sheet. So on that basis, we took, I guess a more conservative approach and use the rather than having the lazy balance sheet approach we actually paid cash for most of these rollouts.
Included out of that $27,000,000 we obviously had upgrades to the in particular the fit and fast locations. And certainly with every acquisition that we undertake, while Generally, they're walk in, walk out operations. We do tend to spend probably a couple of $100,000 on each site just refreshing the cardio equipment in particular. So that equated to in the order of probably $7,000,000 or $8,000,000 as well. So that gets you to $22,000,000 And the remainder of that was acquired plant and equipment through the acquisitions.
We actually took them on to balance sheet that gets separated out. So that was a couple of million and the rest is maintenance CapEx throughout the remainder of our site. That was kind of what the CapEx profile looked like for the financial year.
Okay, great. And a follow-up To the question earlier on, I guess, discussion with landlords, can you give us a sense of what sort of timeframes Were accepted last, I guess, COVID outbreak in terms of months deferred or anything like that as a bit of a way to frame perhaps the discussions you'd be having next week and beyond?
So it's all going to depend on how long it's locked down for. So as mentioned, we're up to date with all rentals. So If New South Wales continues to lock down for 3 months, we'll ask for a deferral of those 3 months as an example. Because once we and are able to trade. The tap turns on, the revenue starts to flow.
We don't need to defer any more past that. So those discussions with landlords will be centered around how long we are lockdown for and that for that period of time, we want to defer those rentals over the next 12 months, for example, in equal installments.
Okay, great. And final It's a very good start in terms of the rollout of Ground Up and Heat Republic continues to perform well sort of 2 years Also after launching, how has the success of those formats changed or altered any of your thinking around the rollout strategy going forward. I heard you sort of talk to the fact that you won't need too many ground ups in ACT because there's a lot more people go to them. But is there any other color on the success of those formats and the overall sort of rollout strategy that you could talk to?
Rather than try and fit the concept into an area, we work the other way generally with our rollout. So we determine We want to enter this area or we need to supplement an existing club in a particular region, and we work out which concept best fits in there. So we don't work the other way and say, oh, we need to put 10 new ground ups, where are we going to put them? It works the other way where we're saying, well, that club as that type of demographic member, which suits the same demographic as ground up. So it makes it ideal to put a ground up next to that one or it suits to put a hit republic next to that one, whether it's more female orientated or male orientated or age groups, whatever.
So It's not for us about let's roll out 10 of these and pick a dot on a map. It's more about strategically looking at what club is doing what club or clusters of clubs are doing well and we can supplement that even more because we have good brand awareness and good brand support.
Yes, great. So no real change to the philosophy and strategy, despite that success. I'll leave it there, sir, for others.
Thanks, Nick.
Thank you. Your next question comes from Tom Tweedy with Moelis Australia. Please go ahead.
Hi, guys. Just a couple from me. Just at a high level, you've given us the revenue impact for FY 'twenty two to date and across the states where the day is closed. Can you give us just a sense of given the different maturities of clubs across those states, What state what would be the ranking in terms of the biggest impact to revenue from mature clubs? And then obviously that expectation when the lockdown versus that they could bounce back the quickest.
Do you have a sense of that just at a high level?
Yes, it's the ACT. So the ACT is the key market for us. And once that reopens, I mean, we have 10% of the population in the ACT are members of ours. So, 1 in 10 people uses our facilities, and that's why it's key for us for that market to reopen. The current lockdowns in the ACT are scheduled to end on the 2nd September.
Whether they get extended is unknown, but that's the key market for us. That's where our most mature clubs are, and that's where 42% of our members are.
Okay, perfect. And Just looking at expansion across other states, WA is obviously your 2nd biggest plus franchise franchises. Is there any view to move other brands across to WA? Is there an opportunity there for that state?
We have looked at WA, but we've got enough opportunities in front of us in down the eastern side, especially in Victoria and Queensland that For us to go into WA, we would need to potentially make an acquisition that gave us 5, 6, 7 sites straight away, something like that to put the infrastructure in there with area managers and stuff. So for us, the focus is still in Victoria and Queensland where there are lots of opportunities for us. So while WA is on our radar, I don't think it's a priority for us at the moment.
Okay. No worries. And just following on from Nick's question, just looking forward for this half, the maintenance CapEx sort of more associated around refits and new equipment. Are you able to quantify what was probably scheduled for the 1st sort of 4 to 6 months? And do we expect that to be pushed into the second half, so we see an incremental step up from deferred CapEx in the first half?
Yes, a lot of it will be pushed, but I'll get Kim to take that one.
Yes. I was about to say, look, I guess one of the silver linings in having clubs closed is that no one's using your treadmills, right? Ultimately, any planned maintenance CapEx? And when I say planned, a lot of it is in ad hoc in nature. If something breaks, it gets replaced.
And in a general sense, we typically use the depreciation costs of the equipment as a proxy for maintenance CapEx across any year. But over the last couple of years, we've found that we've been able to Really slowed down the maintenance simply because of the lockdown. So from that perspective, we're tools down on maintenance CapEx at the moment. There doesn't appear to be anything that needs urgent replacement at this stage. Again, we'll probably reassess this on every 2nd month to see where we sit.
But at the moment, it's tools down on maintenance CapEx as part of the cash reservation strategy.
Okay, brilliant. And final question for me. Just I didn't notice any, but is there any update you can give us on the plus fitness dispute with some of the franchisees there?
Yes. As we just put out in the presentation that There's no claim being filed. We're still in discussions with them. One of the concerns that we heard was the access to operational staff being shared across the brands, and that's why we implemented the Chain Collective Group concept. But The situation is exactly as it was back then back in April The AFR published an article that some franchisees weren't happy and they were considering lodging a claim within 30 days and nothing's happened in that time.
Thanks, guys. Appreciate it.
Thank you.
Thank you. There are no further questions at this time. I'll now hand back to Mr. Constantino for closing remarks.
Thank you, everyone, for attending the Viva Leisure FY 2021 results conference. We appreciate your continued support and look forward to speaking with you all over the next few days. Please reach out to Kim or myself if you have any questions in the meantime. Thank you.