Esporta PLC
15 November 2000
ESPORTA ANNOUNCES EXPANSION INTO CONTINENTAL EUROPE
Esporta plc ('Esporta') announces today that it has purchased the entire
issued share capital of Healthland (Spain) S.A., free of intercompany debt,
from Healthland Europe Limited for an estimated cash consideration of £1.4m
(subject to working capital adjustments). In addition, Esporta will settle
after completion trade creditors estimated at Euro 1.0m (£0.7m).
The assets of Healthland (Spain) S.A. include the 42,000 sq. ft Las Rozas
health & fitness club which opened at the Heron City leisure complex in
Madrid in December 1999. Las Rozas is currently trading with approximately
9,500 members. Healthland (Spain) S.A. has also exchanged contracts for the
development and lease of five further large capacity clubs in Madrid,
Barcelona and Valencia (one of which requires landlord's consent on a change
of control). These clubs are all due to open over the next two years.
At 30 September 2000, the relevant assets of Healthland (Spain) S.A. to be
acquired by Esporta were held in Healthland (Spain) S.A.'s books at Euro
2.7m (£1.7m), together with current 3rd party liabilities of Euro 1.0m
(£0.7m). In the first nine months of 2000, the company had operating losses
of approximately Euro 0.7m (£0.4m), reflecting the performance of the Las
Rozas club in its early months of trading.
In a related transaction, Esporta has also taken over, at nil premium, the
leasehold interests of the Healthland group in respect of two new clubs
under development in France and Sweden. The clubs are located in Heron City
leisure complexes in Stockholm and Lille and are due to open in 2001.
In the United Kingdom, Esporta announces today that it has also secured the
lease of the 47,000 sq. ft. Healthland unit in Romford for a nil premium.
Esporta acquired the Healthland Milton Keynes club in October for a
consideration of £2.5m.
All of the clubs announced today will be branded as Esporta and will be
operated in accordance with the established procedures and standards in
Esporta's existing UK clubs.
Graham Coles, Chief Executive of Esporta, commented:
'As we stated in our Listing Particulars, we regard the exploitation of
opportunities in continental Europe as one of our key growth drivers. These
transactions provide us with valuable platforms in three countries from
which to develop organically the Esporta format and brand across Europe.
'There is a low representation of large scale full-service clubs in
continental Europe. We believe that with the Esporta product we are very
well placed to address the enormous unsatisfied demand for a premium
offering.
'We are delighted to have secured in Las Rozas one of the very few large
capacity clubs on the Iberian Peninsula. This club, together with a very
strong development pipeline of seven other sites, will provide us with a
powerful base upon which to build in three key European territories.'
Contact
Esporta
Graham Coles 0118 912 3500
Mark Beadle 0118 912 3500
Brunswick
William Cullum 0207 404 5959
Notes for Editors
1.Esporta plc is one of Europe's fastest growing and most successful health
club groups. Operating primarily at the premium end of the market, Esporta
clubs typically offer a full range of fitness facilities, including swimming
pools, plus a range of non-fitness activities, including bars, restaurants
and health and beauty treatments. Prior to this acquisition, the Company
had 28 clubs and at June 2000 126,000 members. Esporta aims to have 46
clubs in the UK by the end of 2002. At 14 November 2000, Esporta had a
stock market value of £185m. Esporta was floated on the London Stock
Exchange in February 2000.
2.Esporta recently acquired the health club Xscape in Milton Keynes from
joint owners Capital & Regional plc and client funds of PRICOA Property
Investment Management. This club was previously owned by Healthland
Partnership, a joint venture that included Healthland International
Management.
3.Esporta reported Interim Results for the six months to 30 June 2000 on
11 August 2000.
Financial Highlights:
* Turnover up 25% to £38.5m (H1 1999: £30.9m before exceptional income)
* EBITDA up 48% to £9.9m (H1 1999: £6.7m before exceptional items)
* Operating Profit margins increased to 14% (H1 1999 11% before exceptional
items)
* Profit before tax up 73% to £4.5m (H1 1999: £2.6m)
* Earnings per share up 93% to 2.12p (H1 1999: 1.10p)
* Interim dividend of 0.45p per share
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