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Fitness club chain announces healthy financial position
Health club operator, Springhealth Leisure, has reported a reduction in debt and losses following the sale of nine clubs last year, but a fall in membership income has continued to impact on turnover.
The company now operates five clubs in the London area – Hampstead, Heathrow, Brentwood, Chelmsford and Pools on the Park in Richmond – having sold seven clubs in the north east plus one in Bristol and one in Leicester between April and December 2003.
Announcing interim results for the six months to 29 February, Springhealth said operating profit had risen to £119,000 from £28,000 and pre-tax losses stood at just £6,000 compared with £222,000 in 2003.
As a result of the club sales, the company’s net debt has also been reduced from £5.05m last August to £1.13m.
However, turnover in the five remaining clubs fell by £85,000 to £2.2m in the period as a result of a 4 per cent fall in membership income and pressure on joining fees.
Chair, Sandy Anderson, said: “The company has undertaken a major restructuring of its operations over the last year which has substantially reduced net debt. This restructure, combined with our focus on improving performance and a reduced cost base, has resulted in a marked improvement in the company’s financial position.
“Our offering of affordable membership with excellent facilities is powerful and we are marketing aggressively to improve our market position and positive cash flow in each club locally.”