Disposal
11 April 2003 - 7:00PM
UK Regulatory
RNS Number:9094J
Springhealth Leisure PLC
11 April 2003
11 April 2003
SPRINGHEALTH LEISURE PLC
DISPOSAL
SpringHealth Leisure PLC, the health and fitness clubs operator, announce that
the sale of its Leicester and Bristol clubs has been completed. The proceeds of
these disposals of #2.45m in cash will be used to bring down SpringHealth's
gearing to approximately 32%.
The net assets of the clubs to be sold (including an allocation of goodwill) are
approximately #5.2m and the operating profit attributable to the clubs, before
allocation of certain central costs, was approximately #162,000 for the year
ended 31 August 2002.
John Lowther, Chief Executive, commented:
"These disposals will allow the company to repay debt with a fixed coupon of 7%
and consequently, annualised pre-tax earnings will not be affected in the short
term. Their effect is to refocus SpringHealth's operations geographically,
around London and the North East. In the current competitive health and
fitness sector, the Board believes that these disposals provide the company with
the ability to devote its financial and managerial resources on optimising the
operation of its current portfolio of clubs."
Enquiries to: John Lowther, Chief Executive 07710 601563
SpringHealth Leisure plc
Simon Rothschild/Tarquin Edwards 0207 929 5599
Holborn
This information is provided by RNS
The company news service from the London Stock Exchange
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