UK - Esporta announces results and new refinancing

Guy
14 February 2006

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Esporta, a leading player in the premium health club market, has announced strong 2005 results and the completion of a refinancing to give financial resources to fund acquisitions and new site roll out. Esporta produced like-for-like sales growth of 3.6 % in 2005, an EBITDA increase of 10% to £38.3m and member retention improvement of 2.5% points.

The successful disposal of the loss-making European health and fitness operation in the summer of 2005 has enabled Esporta to focus on its core market, UK premium health clubs. To this end the business, which is backed by Duke Street Capital, has just completed a refinancing of its senior debt facilities, releasing a further £120m of cash to fund both acquisitions and organic growth through new site roll out. The new debt facility is £306.2m. Esporta was advised by Close Brothers and the facilities were arranged and underwritten by Bank of Scotland.

The new site pipeline is now extremely strong with one new racquets club (Norwich) opening in three months time and land for a further four sites has been conditionally purchased in Worcester, Havant, Gloucester and Basingstoke. Construction on these new sites is scheduled to commence between now and mid 2007. Further development sites are under negotiation to provide a roll out programme of at least two racquets clubs per year for the foreseeable future.