RNS No 1197u
FITNESS FIRST PLC
4th February 1999
FITNESS FIRST Plc
Preliminary Results for the Year Ended 31 October 1998
Fitness First Plc, winner of the 'Best Use Of AIM' Award in October 1998, is
one of the UK's largest independent dedicated health and fitness club
operators.
The Company announces record results and its intention to move to the
Official List of the London Stock Exchange.
Year ended 31 October
1997 1998 Increase
Turnover #5.7m #13.4m 136%
Pre-tax profit #1.3m #2.7m 107%
Earnings per share 4.36p 8.04p 84%
* Increase in turnover reflects strong organic growth.
* At 31 October 1998 the Company operated 33 clubs: 27 in the UK and
6 in Germany.
* Since the year end a further 9 UK clubs and 3 German clubs have
opened, bringing the total number of clubs to 36 in the UK and 9 in
Germany, with total membership of 78,000.
* The Company plans to operate at least 45 UK clubs and 14 German
clubs by the end of the current financial year, making a total of
59 clubs and over 100,000 members.
* The Company will move to the Official List of the London Stock
Exchange in February 1999.
Michael Balfour, Managing Director of Fitness First, commented:
"This is a very good set of results and reflects the success of our
"Affordable Fitness" concept. In the past year membership levels have
continued to rise and demand for our new clubs has been strong. We have
ambitious plans for further club openings in the UK and Germany and we look
forward to establishing Fitness First as one of the leading European health
and fitness club operators."
Enquiries:
Fitness First Plc Today: 0171 457 2345
Michael Balfour, Managing Director 01202 390444
Christopher Pearce, Chairman 01932 865065
Investec Henderson Crosthwaite - Corporate Finance 0171 772 7081
Andrew Edwards
Gavin Anderson & Company 0171 457 2345
Richard Barton/Rebecca Penney
Notes to editors:
1. Fitness First was floated on the Alternative Investment Market in October
1996 at a price of 80 pence per share. On the basis of the closing
share price on 3 February 1999 of 373p the Group has a market
capitalisation of approximately 130.4 million.
2. Founded in 1992, Fitness First was created with the objective of
developing a chain of health and fitness clubs to focus on the concept of
"Affordable Fitness", providing health and fitness club facilities that
tend to be in most demand for a relatively modest subscription fee of
around #31 per month and a joining fee of typically between #35 and
#60.
3. A typical Fitness First health club, with a fit out costing approximately
#800,000, provides a large gymnasium with a wide variety of
cardiovascular and resistance equipment, a large air conditioned aerobics
studio and luxury changing facilities leading on to a health spa
consisting of a large sauna, steam room and whirlpool bath. Also
provided are extensive free parking, creche, lounge area with licensed
bar, beauty salon and an extensive members' video library consisting of
over 600 titles.
4. Clubs open by location:
Open at 31 October 1998:
Birmingham, Bournemouth, Bromborough, Brixton, Camberley, Camden, Chalk
Farm, Chatham, Chelmsford, Coventry, Derby, Dundee, Edinburgh, Fareham,
Glasgow, Halifax, Hartlepool, Huddersfield, Ipswich, Kilburn, Kingsbury,
Northampton, Rotherham, Shrewsbury, Southampton, Southend, Telford.
Opened since 31 October 1998:
Belfast, Tottenham, Rochdale, Leeds, Preston, Manchester, Nottingham,
Sheffield and Holloway.
5. In August 1998, Fitness First became the first UK health and fitness club
operator to take a significant step into Europe with a 50% acquisition of
The Fitness Company Freizeitanlagen GmbH ("The Fitness Company") in
Germany.
6. The Fitness Company currently operates nine clubs, seven of which are
located in the Frankfurt region with a further two clubs located in
Mannheim and Augsburg.
An additional four to five clubs are expected to open in Germany during
1999 and thereafter six to eight clubs per annum.
FITNESS FIRST Plc
CHAIRMAN'S STATEMENT
Year ended 31 October 1998
The financial year to 31 October 1998 proved to be highly successful with
further rapid development and expansion of Fitness First Plc, a year in which
pre-tax profits more than doubled to #2.753m (1997 - #1.330m) an increase of
107%. Fitness First is one of the largest independent dedicated health and
fitness club operators in the UK with 27 clubs open at 31 October 1998 (1997 -
14).
Turnover grew 136% to #13.406m (1997 - #5.686m) with a corresponding rise in
earnings per share from 4.36p in 1997 to 8.04p, an increase of 84%.
During the year, Fitness First opened 13 new clubs in Glasgow, Halifax,
Dundee, Chelmsford, Southampton, Chatham, Ipswich, Kilburn, Brixton, Telford,
Chalk Farm, Camden and Kingsbury. Since the year end, further clubs have
opened in Belfast, Tottenham, Rochdale, Leeds, Preston, Manchester,
Nottingham, Sheffield and Holloway bringing the total number of UK clubs in
February 1999 to 36.
As has been clearly demonstrated, the Company's strategy has been focused on
the early identification and opening of new sites across the UK, to capitalise
on our highly successful 'Affordable Fitness' concept and this is set to
continue. The Directors are confident that there will be at least 45 clubs
open in the UK by the end of the current financial year.
The Company's rate of expansion has been substantially greater than originally
forecast and to enable the Company to continue to expand at this rate a
Placing and Open offer was successfully completed in February 1998 which
raised #10.1m after expenses.
In August 1998 Fitness First became the first UK health and fitness club
company to take a significant step into the European market by purchasing 50%
of The Fitness Company, Germany's second largest chain of health clubs for a
total investment of #9.0m. The Fitness Company had six health clubs mainly
situated around the Frankfurt area and the strategy now is to rapidly roll out
the 'Affordable Fitness' concept throughout Germany. Since the acquisition,
two clubs have been successfully opened in Frankfurt and Mannheim during
December 1998 and a third in Augsburg in January 1999. It is anticipated that
a further four to five clubs will open during 1999 and thereafter six to eight
clubs per annum. The Company raised #5.32m by way of a Placing in August 1998
to fund the acquisition.
The joint venture with the Berkeley Group Plc has been disappointing for both
parties as the identification of suitable sites to date has been slower than
originally predicted. This has been more than compensated by the faster
expansion of Fitness First in the South East with seven sites opened in 1998.
Development at the first Fitness First Berkeley site in London has now
commenced and the facility is expected to open in the second half of 1999.
As stated in the Chairman's Statement for the year ended 31 October 1997, the
Directors have considered the appropriateness of paying a dividend and have
determined that the profits generated during 1998 can best be invested in
further club openings. As a consequence, consideration of a payment of a
dividend will be deferred until the announcement of the 1999 results.
There has been much discussion in the press as to whether 1999 will see a
downturn in the economy. Whereas no business is totally immune, the Directors
feel confident that the Company formula is particularly well positioned to
withstand any downturn. Fitness First has always provided exceptional
membership value at an affordable price. To date the Fitness First product
has shown no signs of any fall in demand with new membership uptake strong,
thereby providing a healthy trading outlook for 1999. The Directors are
confident that the pre-tax profits for the year to 31 October 1999 will
continue to show substantial progress.
Membership in the UK increased to 52,416 at 31 October 1998 (1997 - 23,865) an
increase of 120% and, since the year end, has grown to 63,000. In Germany the
current membership is approximately 15,000, making a Group total of 78,000.
In 1998, a number of significant milestones were achieved in Fitness First's
corporate development and recognition. Amongst these, Fitness First was
nominated for two categories at the AIM Awards Dinner and was the winner of
the 'Best Use Of AIM' award. Fitness First was also voted 'Dorset Company of
the Year' in December.
In my previous Chairman's Statement, I signalled the Board's possible
intention to move to the Main Market at the time of publication of these
results. After due consideration, your Board has decided that Fitness First
will apply for a full listing on the London Stock Exchange in February.
Fitness First relies very heavily on the commitment, dedication and enthusiasm
of its employees. Fitness First is a fast growing business with many aspects
which encompass project management, health and safety, technical services,
site finding, property negotiation and planning in addition to the operation
of multiple health club facilities. I would like to take this opportunity to
thank sincerely all the Managers and Staff for their hard work and dedication,
which have contributed to the success of the business during this active and
exciting period.
Your Directors remain optimistic about the future prospects and believe that
during 1999 Fitness First will not only sustain and enhance its position as
one of the leading independent health club operators in the UK, but will also
continue to make good progress with its expansion programme in Germany and to
establish Fitness First as the leading operator of affordable fitness in
Europe.
Christopher Pearce
Chairman
4 February 1999
FITNESS FIRST Plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 31 October 1998
1998 1997
#000 #000
Turnover: Group and share of joint ventures 14,098 5,686
Less: Share of joint ventures' turnover (692) -
------ ------
GROUP TURNOVER - continuing operations 13,406 5,686
Changes in stocks of goods for resale (79) 5
Raw materials and consumables (436) (295)
Staff costs (4,802) (2,037)
Depreciation and other amounts
written off tangible assets (995) (330)
Other operating charges (4,317) (1,728)
------ -------
OPERATING PROFIT - continuing operations 2,777 1,301
Share of profit of associated undertakings 7 -
Share of profit of joint ventures 171 -
------ ------
PROFIT ON ORDINARY ACTIVITIES
BEFORE INTEREST 2,955 1,301
Interest receivable and similar income 155 207
Interest payable and similar charges (357) (178)
------ ------
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 2,753 1,330
Tax on profit on ordinary activities (205) (132)
----- -----
RETAINED PROFIT FOR THE FINANCIAL YEAR 2,548 1,198
----- -----
Earnings per ordinary share (note 3) 8.04p 4.36p
----- -----
FITNESS FIRST Plc
CONSOLIDATED BALANCE SHEET
31 October 1998
1998 1997
#000 #000
FIXED ASSETS
Tangible assets 38,162 17,234
Investments
Investments in joint ventures:
Share of gross assets 4,549 -
Share of gross liabilities (1,590) -
----- ------
2,959 -
Investment in associated undertaking 45 38
Investment in loan notes 812 -
----- ------
3,816 38
----- ------
41,978 17,272
CURRENT ASSETS
Stocks 98 19
Debtors 1,339 623
Cash at bank and in hand 10,072 4,619
----- ------
11,509 5,261
CREDITORS: amounts falling
due within one year (11,504) (2,757)
----- ------
NET CURRENT ASSETS 5 2,504
----- ------
TOTAL ASSETS LESS CURRENT LIABILITIES 41,983 19,776
CREDITORS: amounts falling due
after more than one year (14,797) (6,190)
----- ------
27,186 13,586
----- ------
CAPITAL AND RESERVES
Called up share capital 8,729 6,875
Share premium account 21,904 5,974
Other reserves (7,807) (929)
Profit and loss account 4,360 1,666
------ ------
TOTAL EQUITY SHAREHOLDERS' FUNDS 27,186 13,586
------ ------
FITNESS FIRST Plc
COMPANY BALANCE SHEET
31 October 1998
1998 1997
#000 #000
FIXED ASSETS
Tangible assets 174 116
Investments 14,771 4,482
------ -----
14,945 4,598
CURRENT ASSETS
Debtors 9,734 4,293
Cash at bank and in hand 10,033 4,539
------ ------
19,767 8,832
CREDITORS: amounts falling
due within one year (3,525) (357)
------ -----
NET CURRENT ASSETS 16,242 8,475
------ ------
TOTAL ASSETS LESS
CURRENT LIABILITIES 31,187 13,073
CREDITORS: amounts falling
due after more than one year (9) (17)
------ ------
31,178 13,056
------ ------
CAPITAL AND RESERVES
Called up share capital 8,729 6,875
Share premium account 21,904 5,974
Profit and loss account 545 207
------ ------
TOTAL EQUITY SHAREHOLDERS' FUNDS 31,178 13,056
------ ------
FITNESS FIRST Plc
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year ended 31 October 1998
1998 1997
#000 #000
Profit for the financial year 2,548 1,198
Currency translation differences on
foreign currency net investments 146 -
----- -----
Total recognised gains and losses
relating to the year 2,694 1,198
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Year ended 31 October 1998
1998 1997
#000 #000
Profit for the financial year 2,548 1,198
Other recognised gains and losses
relating to the year 146 -
Shares issued 18,253 -
Share issue costs (469) (27)
Goodwill on investment in joint venture (6,718) -
Goodwill on purchase of a club (160) -
------ ------
Net addition to shareholders' funds 13,600 1,171
Opening shareholders' funds 13,586 12,415
------ ------
Closing shareholders' funds 27,186 13,586
------ ------
FITNESS FIRST Plc
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 October 1998
1998 1997
Note #000 #000 #000 #000
Operating activities
Net cash inflow from
operating activities a 7,355 1,932
Returns on investments
and servicing of finance
Interest received 142 208
Interest paid (163) (106)
Interest element
Of finance lease
rental payments (124) (73)
----- -----
(145) 29
Taxation
UK Corporation tax
repaid/(paid) 45 (100)
Capital expenditure
Payments to acquire
tangible fixed assets (20,436) (8,424)
(20,436) (8,424)
Acquisitions and disposals
Investment in joint
ventures (9,477) -
Investment in loan
notes in joint venture (776) -
Purchase of trade (160) -
----- -----
(10,413) -
-------- -------
Cash outflow before
management of liquid
resources and financing (23,594) (6,563)
Management of
liquid resources
Sale of units in
investment trust - 5,500
----- -----
b,c - 5,500
Financing
Issue of ordinary
share capital 18,253 -
Share issue expenses (469) (27)
Debt due within a year:
repayment of secured loans (243) (1,650)
Debt due beyond a year:
new secured loans 11,823 5,039
Capital element of
finance lease rental
payments (674) (217)
----- -----
28,690 3,145
------ ------
Increase in cash in year 5,096 2,082
------ ------
FITNESS FIRST Plc
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 October 1998
a. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM
OPERATING ACTIVITIES
1998 1997
#000 #000
Operating profit 2,777 1,301
Depreciation charges 995 330
Increase in stocks (79) (5)
Increase in debtors (710) (515)
Increase in creditors 4,315 821
Loss on disposal of fixed assets 57 -
----- -----
Net cash inflow from
operating activities 7,355 1,932
b. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
1998 1997
#000 #000
Increase in cash in the year 5,096 2,082
Cash inflow from increase in debt
and lease financing (10,906) (3,173)
Cash inflow from increase
in liquid resources - (5,500)
------- ------
Movement in debt arising from
cash flows (5,810) (6,591)
New finance leases and hire
purchase contracts (1,544) (990)
------ ------
Movement in debt in the year (7,354) (7,581)
Net debt at beginning of year (2,466) 5,115
------ ------
Net debt at end of year (9,820) (2,466)
------ ------
c. ANALYSIS OF NET DEBT
At Other At
1 November Cash non cash 31
1997 flow changes October
1998
#000 #000 #000 #000
Cash at bank and in hand 4,619 5,453 - 10,072
Bank overdrafts (211) (357) - (568)
------ ------ ----- -----
4,408 5,096 - 9,504
Debt due after 1 year (5,587) (11,823) 3,670 (13,740)
Debt due within 1 year (259) 243 (3,670) (3,686)
Finance leases and
hire purchase contracts (1,028) 674 (1,544) (1,898)
------- ------- ------- -------
Total net debt (2,466) (5,810) (1,544) (9,820)
------- ------- ------- -------
FITNESS FIRST Plc
NOTES TO THE PRELIMINARY STATEMENTS
1. The statutory accounts for 1997 have been delivered to the Registrar of
Companies and those for 1998 will be delivered shortly. The auditors
have reported on those accounts; their reports were unqualified and did
not contain statements under Section 237(2) or (3) of the Companies Act
1985.
2. Financial information contained in the preliminary announcement of
results does not constitute statutory accounts but is derived from those
accounts.
3. Earnings per share have been calculated by dividing the profit after
taxation, minority interests and preference dividend by 31,681,151 (1997:
27,500,000), the weighted average number of ordinary shares in issue
during the year. No fully diluted earnings per share is presented in the
profit and loss account as the difference is not material.
4. Copies of the preliminary results announcement are available from the
offices of the Company's nominated advisers Investec Henderson
Crosthwaite, and nominated broker, Henderson Crosthwaite Institutional
Brokers Limited, both located at 32 St. Mary at Hill, London for a period
of 14 days from the date of this announcement.
5. The annual report and accounts will be posted to shareholders shortly.
Copies will be available on request from the Company Secretary at 51
Queens Park South Drive, Bournemouth, Dorset BH8 9BJ.
END
FR TJMLBLLAMBBL
Foresight Enterprise Vct (LSE:FTF)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Foresight Enterprise Vct (LSE:FTF)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024
