Disposals
May 06 2003 - 6:01AM
UK Regulatory
RNS Number:7256K
Topnotch Health Clubs PLC
06 May 2003
FOR IMMEDIATE RELEASE
6 MAY 2003
Topnotch health clubs plc
("Topnotch" or "the Company")
DEBT REDUCTION PROGRAMME
As part of the ongoing restructuring and debt reduction programme, the Board of
Topnotch announces today that it has disposed of four of its health clubs to
Vision Fitness for a gross consideration of #3.5 million. After transferring
liabilities the total cash consideration payable to Topnotch is #2.1 million.
The funds will be used to reduce debt.
The sale of the clubs in Brentford, New Malden, Maidstone and Colchester is
subject to landlords' approval. Net assets disposed of represent approximately
#4.7 million and the operating profit attributable to the clubs before
allocation of certain central costs was approximately #539,000 for the year
ended 30 April 2002.
The company has also agreed to sell Espree Leisure Ltd to Vision Fitness for #1.
Espree Leisure Ltd owns the Topnotch club at Blackfriars and the recently
closed club at Royal Mint Court. With the sale, the purchaser also assumes
approximately #350,000 of outstanding liabilities. The combined operating loss
for Royal Mint Court and Blackfriars for the year ended 30 April 2002 before
central costs was #10,000. Net book value of these clubs is approximately
#315,000.
Matthew Harris, Chief Executive, commented:
"Trading conditions remain difficult in the sector and the group continues to
trade at a loss. We are close to concluding new arrangements with our bankers
and the proceeds from this sale will be used to reduce debt.
Following the disposal Topnotch has an estate of 13 health clubs."
For further information:
Topnotch health clubs plc 020 7381 2229
Matthew Harris, Chief Executive
Beattie Financial 020 7398 3300
Brian Coleman Smith / Amanda Sheehy
This information is provided by RNS
The company news service from the London Stock Exchange
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