Trading Update
September 24 2003 - 3:01AM
UK Regulatory
RNS Number:0960Q
Clubhaus PLC
24 September 2003
Wednesday 24 September 2003: for immediate release
Charlie Parker, Managing Director
Paul Stephens, Finance Director
Clubhaus PLC Tel: 0870 240 8924
Capel Irwin
KBC Peel Hunt Limited Tel: 020 7418 8900
Alka Bali
Close Brothers Corporate Finance Limited Tel: 020 7655 3100
Giles Sanderson
Financial Dynamics Tel: 020 7831 3113
Clubhaus PLC
Update on trading and strategic review
Clubhaus PLC announces that following the successful disposal of all of its
non-core businesses, the core portfolio of 11 clubs has performed in line with
management's expectations during the first 11 months of the current financial
year, which ends on 30 September 2003. On a like for like basis the results for
the 11 clubs for the full year will be significantly ahead of those achieved in
the previous year. However due to the high level and cost of debt within the
Company, it is unlikely that the Company will report a profit for the year ended
30 September 2003.
In this year's Interim Report, which was published on 16 May 2003, the Chairman
made reference to the strategic objectives of the Group, namely to continue to
focus on the UK Country Club business and secondly to develop the four remaining
clubs, which do not offer health and fitness facilities, into Country Clubs. The
development of the portfolio, specifically the four clubs, is precluded by the
current capital structure, which contains a high level of expensive and
restrictive borrowings. The Chairman also made reference to the fact that the
Board was working on initiatives to reduce the burden of debt to allow the
development projects to be completed.
During the past few months it has become apparent that there are a number of
alternative options that the Board can pursue to achieve its objectives,
including the possible sale of the Company. However the review of the options is
at an early stage and there is no certainty that a sale will be pursued. In the
event that a sale of the Company is considered to be in the best interests of
shareholders, certain members of the Board have indicated that they would be
interested in pursuing a management buy-out to determine if this produced the
best deal for shareholders. As a result of the initiatives described above, the
Company appointed Close Brothers Corporate Finance Limited on 22 September 2003
to assist the Board in reviewing all the options available. A further
announcement will be made in due course.
- Ends -
Close Brothers Corporate Finance Limited and KBC Peel Hunt Limited are acting
exclusively for Clubhaus PLC in connection with the matters referred to in this
announcement and will not be responsible for anyone other than Clubhaus PLC for
providing the protections afforded to their respective clients or for providing
advice in relation to the matters referred to in this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTBIGDCDDDGGXX