Leejam seeks ‘best option’ in expansions, acquisitions: CEO

Adnan Al-Khalaf, CEO of Leejam Sports

Leejam Sports Co. (Fitness Time) seeks to capture the best options for expansions and acquisitions, similar to its Xpress brand or the acquisition of Al Tatheer Sports Co., CEO Adnan Al-Khalaf told Argaam on the sidelines of the EFG Hermes Saudi Forum in London.

The fitness firm is keen on opportunities that promise fast results at low cost, he added.

Talking about the stock’s recent performance, Al-Khalaf said the rally followed the company’s latest financial results as it generated accumulative earnings five years after listing. He also pointed to Leejam’s ability to fulfil its promises, which in turn boosted investor confidence and helped it achieve record results last year.

Leejam management does not monitor the stock movement, it rather focuses on delivering the optimum business performance. The stock is valued by the market.

The impact of the ongoing projects and expansions has not yet been reflected on the company, and is expected to show over the coming periods, the CEO noted.

“Leejam’s market share is growing and is forecast to increase as was the case with ladies clubs,” he indicated, adding that the company studies the market share through its internal research department.

The gym chain operator also seeks to fulfil client aspirations in all segments – low-cost, premium and specialist clubs.

Leejam should raise shareholder awareness that expansion plans are based on a detailed demographic study of the target areas. Accordingly, the number and category of sports clubs are determined, whether Fitness Plus, studios, etc.

New openings are based on priority and supply levels in the target areas, as the company focuses on fulfilling demand, which may take from two to three years based on the availability of the appropriate option, Al-Khalaf said.

The board has not yet made any decision on stock split. The company is committed to high governance and transparency criteria, the CEO noted, adding any decisions in favor of the company or its shareholders will be taken.