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Topnotch Hlth Clubs (THC)

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Monday 15 January, 2001

Topnotch Hlth Clubs

Interim Results

Topnotch Health Clubs PLC
15 January 2001


                    Topnotch health clubs plc
                  ('Topnotch' or 'the Company')
                                
    Interim Results for the six months ended 31 October 2000

Topnotch  health clubs plc, the fast expanding operator  of  quality,
affordable  health and fitness clubs that 'Dare to be Different',
announces its interim results for the six months ended 31 October
2000.

Highlights

 *  Number of clubs doubled to 16 in first half by acquisition and
    organic development

 *  Total membership increased by 156% to 22,912 (1999: 8,937)

 *  Like-for-like club membership increased by 7.3% to 8,230 (1999:
    7,668)

 *  Turnover increased by 167% to £3.8m (1999: £1.4m)

 *  Like-for-like turnover increased by 8.1% to £1.3m (1999:
    £1.2m)

 *  Like-for-like club contribution increased by 10.7% to
    £314,000 (1999: £284,000)

 *  Operating profit (before exceptional and pre-opening
    expenses) of £101,000 (1999: operating loss on same basis
    £53,000)
  
 *  Pre tax loss reduced by 72% to £69,000 (1999: £253,000)

 *  Loss per share reduced to 0.42p (1999: 2.58p)

 *  Cash flow   from   operations  increased  to  £1.17m   (1999:
    £128,000)

 *  Good  progress made in re-branding and refurbishing acquired
    clubs - programme expected to be largely complete by the end  of
    April 2001

 *  New Topnotch clubs to open at Tower 42 office development in
    City of London and Sol Central leisure development, Northampton,
    in July and September 2001 respectively

 *  Negotiations   for  the  acquisition   of   further   sites
    progressing  - Company well ahead of growth targets outlined  at
    flotation in March 2000

Charlie  Scott,  Chairman, commented:  'The  health  and  fitness
market   remains  buoyant,  with  continued  strong  demand   for
memberships both in our existing and newly developed  clubs.   We
are  encouraged by the availability of potential  new  sites  and
individual  acquisition opportunities and are very  pleased  with
the  underlying growth in club profitability for the  clubs  open
throughout  both respective periods.  The Board is  confident  of
achieving further progress for the year as a whole.'


Enquiries:

Topnotch health clubs plc            (15.01.01)   020 7601 1000
Matthew Harris, Chief Executive      (thereafter) 020 8232 6802

Square  Mile BSMG                                  020 7601 1000
Kevin Smith/Anna Watson
                                                                 

                    Topnotch health clubs plc
                  ('Topnotch' or 'the Company')
                                
    Interim Results for the six months ended 31 October 2000
                                
        CHAIRMAN'S AND CHIEF EXECUTIVE'S JOINT STATEMENT

We  are pleased to present the interim results of the Company for
the  six months ended 31 October 2000.  This has been a very busy
period  for  Topnotch,  during which we acquired  a  further  six
clubs, all of which are in the process of being converted to  our
'Dare  to  be  different' format.  We also opened two organically
developed clubs.  As a result of this corporate activity  we  are
already  well ahead of the growth objectives set at the  time  of
flotation in March 2000.

Financial Results

Total turnover increased by 167% to £3.8m in the first six months
of the year (1999: £1.4m), with turnover on a like-for-like basis
(clubs  open in both respective six month periods) increasing  by
8.1% to £1.3m.

During the period the Company incurred total exceptional costs of
£136,000  (1999: nil) relating to the integration of the acquired
clubs (£57,000) and professional fees incurred in connection with
the  acquisition  of  new  sites where  completion  is  uncertain
(£79,000).   Pre-opening costs of £75,000  (1999:  £64,000)  were
also incurred.  Adjusting for these costs, the Company reported a
£154,000  improvement in underlying operating profit to  £101,000
(1999:  loss  £53,000).  Like-for-like club contribution,  before
overhead  cost allocation, increased by 10.7% to £314,000  (1999:
£284,000).   The  loss before tax in the period was  better  than
market  expectations,  falling 72% to £69,000  (1999:  £253,000).
There  is no tax charge in the period (1999: nil). Loss per share
was 0.42p (1999: 2.58p).

In  line  with  the  stated policy at the time of  flotation,  no
interim dividend is being proposed.

Cash  flow from operations increased by 813% to £1,169,000 (1999:
£128,000) as a result of maturing clubs and the addition of eight
operational clubs acquired since the 1999 half year end.

Fixed  assets increased by 60% to £12.7m since the last year  end
after the acquisition of six clubs and the organic development of
two clubs.  A total of £5.1m was spent on capital expenditure, of
which  £2.2m was for acquisitions, £1.9m on conversion of organic
clubs and £1.0m on part refurbishment of Birmingham West and  the
other  acquired clubs. Although we had positive cash balances  at
the end of the half year, we have subsequently put in place a new
£5.25m bank facility to fund future development.

Operational Review

Topnotch  expanded rapidly in the first half increasing its  club
portfolio  from eight clubs at the last year end to  a  total  of
sixteen.

We  achieved  this  through the acquisition of clubs  in  central
Birmingham, Bournemouth, Bristol, Croydon, Fulham and Wembley, as
well  as  opening organically developed clubs in New  Malden  and
Maidstone.

Total membership increased by 156% to 22,912 (1999: 8,937).  Like-
for-like membership increased by 7.3%.

London Bridge completed its thirteenth month of operation at  the
half  year end with over 2,500 members and producing a return  on
capital  ahead of our model club.  Although it is early days  for
the  start of the New Malden and Maidstone clubs, we are in  line
with  our  model club profile.  Topnotch's model club  format  is
based  upon a 16-20,000 sq.ft. health and fitness club  targeting
the convenience/value for money segment of the market.

The club at the Whiteleys retail development at Bayswater in West
London  acquired  in  March  2000 has now  been  refurbished  and
rebranded under the Topnotch name, including the introduction  of
our  'PowerZone', 'Planet Spin', 'Ironworks' and 'Knockout  Zone'
themed   concepts.   The  introduction  of  Topnotch   procedures
following  a  period  of staff retraining  has  greatly  improved
efficiency and reduced costs.  These measures have contributed to
a   significantly  improved  performance,  with  the   club   now
profitable  at  club  contribution level.  We  believe  that  the
situation at Bayswater is a good indicator of our ability to turn
around under-performing clubs and the experience gained is  being
put to good use throughout our acquired estate.

Good progress has been made with the integration of the 'Dare  to
be   different'   culture  into  the  acquired  clubs   and   the
implementation  of  Topnotch staffing structures,  sales  systems
with  annual  membership contracts, employee training  programmes
and  of  our  '321'  and 'PT Maxx' personal training  programmes.
Birmingham West, acquired in April 2000, was closed in  September
for  substantial  refurbishment and the addition  of  a  swimming
pool, with phase one of the work completed in December.  The pool
complex is nearing completion and is expected to open in January.
Bristol is currently being refurbished and expanded with Topnotch
themed zones, which include the 'PowerZone' nightclub themed gym,
the  'Planet Spin' spinning studio, the 'Ironworks' free  weights
area, the ladies-only gym, 'Pilates @ Topnotch' and the 'Knockout
Zone' boxing area.

In July 2000 the Company announced the acquisition of five health
and fitness clubs from Cannons Group PLC.  The clubs are situated
in  central Birmingham, Bournemouth, Croydon, Fulham and  Wembley
and  have an average size of approximately 16,000 sq.ft.     Each
of  these  clubs will be refurbished and rebranded as a  Topnotch
facility  and  all  have already adopted our staffing  and  sales
systems.   The  four clubs other than Fulham will offer  Topnotch
themed  zones  by Spring 2001.  Fulham, which requires  a  larger
refurbishment,  will be completed by Autumn 2001.  All  of  these
clubs will remain open during their refurbishments, which will be
financed from existing bank facilities.

Since  the  half  year end we have announced  the  completion  of
agreements  to lease space at Tower 42 in the City of London  and
at the Sol Central leisure development in Northampton, which will
open in July and September 2001 respectively.

Both of these new projects are prestigious new developments.   We
are  also  in negotiations on a number of other sites  that  will
ensure  we  continue  to meet our growth  target  of  opening  or
acquiring four new clubs per annum for the next two years.

A  further strengthening of the operational management  team  has
been  achieved with the appointment of a Human Resources  Manager
and  the promotion of certain club Business Managers to new roles
that also include regional club responsibilities.

The  health  and  fitness market remains buoyant, with  continued
strong  demand  for  memberships both in our existing  and  newly
developed  clubs.  We are also encouraged by the availability  of
potential  new  sites  and individual acquisition  opportunities.
The Board is confident of achieving further progress for the year
as  a  whole  and is pleased with the underlying growth  in  club
profitability  for  the  clubs open  throughout  both  respective
periods.


Enquiries:

Topnotch health clubs plc            (15.01.01)    020 7601 1000
Matthew Harris, Chief Executive      (thereafter)  020 8232 6802  

Square  Mile BSMG                                  020 7601 1000
Kevin Smith/Anna Watson

Topnotch health clubs plc

Consolidated profit and loss account

                                                  6 months ended    Year ended
                                 31 October 2000 31 October 1999 30 April 2000
                                     (unaudited)        (audited)    (audited)
                                            £000            £000          £000

Turnover                                  3,804            1,418         3,511

Cost of sales                            (1,222)           (507)       (1,024)
                                        ________        ________       _______

Gross profit                               2,582             911         2,487

Selling  and distribution costs            (528)            (320)        (671)

Administrative expenses  - other         (2,072)            (732)      (1,867)

                         - exceptional     (136)               -             -

                         - total         (2,208)            (732)      (1,867)

Other operating income                       44               24            56
                                        ________       _________      ________

Operating (loss)/profit                    (110)            (117)            5
Interest receivable                          66               12            59
Interest   payable   and  similar   
  charges                                   (25)            (148)        (280)
                                        ________       _________      ________

Loss on ordinary activities              
  before taxation                           (69)            (253)        (216)

Taxation                                      -                _             _
                                        ________       _________      ________

Loss for the period                         (69)            (253)        (216)


Loss  per share - basic                   (0.42)p          (2.58)p     (1.99)p




Topnotch health clubs plc

Summary consolidated balance sheet
__________________________________
                                          As at           As at          As at
                                31 October 2000 31 October 1999  30 April 2000
                                    (unaudited)       (audited)      (audited)
                                           £000            £000           £000

Fixed assets
  Intangible assets                          83               6             85
  Tangible assets                        12,694           4,912          7,891
                                  _____________  ______________  _____________

                                         12,777           4,918          7,976
                                  _____________  ______________  _____________
Current assets
  Stocks                                     44              18             24
  Debtors due within one year               554             306            317
  Cash at bank and in hand                  321              25          4,433
                                  _____________  ______________  _____________

                                            919             349          4,774
Creditors: amounts falling due
  within one year                        (2,893)         (2,704)       (1,831)
                                  ______________  ______________ _____________

Net current (liabilities)/assets         (1,974)         (2,355)         2,943
                                  _____________  ______________  _____________

Total assets less current liabilities    10,803           2,563         10,919

Creditors: amounts falling due
  after more than one year                 (164)         (2,006)         (211)
                                 ______________  ______________  _____________

                                         10,639             557         10,708

Represented by:

Equity shareholders' funds               10,639             557         10,708





Topnotch health clubs plc

Summary consolidated cash flow statement

                                               6  months ended      Year ended
                             31 October 2000   31 October 1999   30 April 2000
                                 (unaudited)         (audited)       (audited)
                                        £000              £000            £000

Net cash inflow from 
  operating activities                 1,169               128             583

Returns on investments and
  servicing of finance              
Interest received                         66                12              59
Interest paid                             (8)             (134)          (260)
Interest element of finance lease
    and hire purchase payments           (17)              (16)           (33)
                              _______________   _______________  _____________

                                           41             (138)          (234)
                              _______________   _______________  _____________
Taxation
  UK corporation tax repaid                 -                -              52

Capital expenditure and 
  financial investment

Purchase of tangible fixed 
  assets                              (2,881)           (1,345)        (2,575)
 Sale of tangible fixed assets             -                 -               4
                              ______________   ________________  _____________

                                      (2,881)           (1,345)        (2,571)
                              ______________   ________________  _____________

Acquisitions and disposals

Purchase of subsidiary 
  undertaking                             -                   -          (496)

Cash acquired with subsidiary             -                   -             24

Purchase of business                 (2,234)                  -          (763)
                              _____________    ________________  _____________
                                       
                                     (2,234)                  -        (1,235)
                              _____________    ________________  _____________

Decrease/(increase) in short 
  term deposits                       3,358                   -        (3,358)
                              _____________    ________________  _____________

Cash inflow/(outflow) from 
management of liquid resources        3,358                   -        (3,358)
                              _____________    ________________  _____________

Financing
Bank loans advanced                       -                 377          1,153
Repayment of bank loans                (114)                (90)       (2,493)
Capital element of finance lease
  and hire purchase payments            (93)               (101)         (216)
Issue of ordinary shares                  -                   -         11,075
Share issue costs                         -                   -          (961)
Redemption of 8% loan notes               -                   -        (1,900)
                              _____________    ________________  _____________
                                       (207)                186          6,658
                              _____________    ________________  _____________

Decrease in cash                       (754)             (1,169)         (106)

                                   
                                   
Notes to the interim results

1.  No dividend was paid during the period under review.

2.  Loss  per share has been computed on the basis of the net loss for
    the period of £69,000. No diluted loss per share has been presented as
    potentially issuable ordinary shares would have no dilutive effect
    during current and prior periods.

3.  This statement does not comprise statutory accounts as defined  in
    S240 of the Companies Act 1985. The financial information for the year
    ended 30 April 2000 has been extracted from the full audited financial
    statements which have been filed with the Registrar of Companies and
    which contain an unqualified audit report.

4.  The  results  for the period ended 31 October 2000 are  unaudited.
    The results for the comparative six month period were audited  in
    preparation for the flotation.

5.  The  financial information included herein has been prepared on  a
    consistent basis and using the same accounting policies as the audited
    financial statements for the year ended 30 April 2000.

6.  Exceptional  administrative  costs  of  £136,000  relate  to   the
    integration of acquired clubs (£57,000) and professional fees incurred
    in connection with potential new sites (£79,000).

7.  The  financial  information included herein was  approved  by  the
    Directors on 12 January 2001.

8.  The  Interim  Report will be mailed to all shareholders  and  will
    also be available at Topnotch health clubs plc, 1&2 Windsor Close,
    West Cross Centre, Great West Road, Brentford, Middlesex TW8 9DZ.



                                                                                
                                                                                
                                                           

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