Crown Sports back in black following non-core disposals

Crown Sports is to pay its first dividend in a number of years after making a return to profitability last year.

In its results for 2004, the company reported a rise in pre-tax profits to £3.3m compared with a loss of £2m in 2003, despite a 13 per cent fall in turnover to £22.9m.

Chief Executive Martyn Grealey said the improved performance was due to the disposal of non-core assets to focus on the health and fitness business.

The company operates 21 Dragons health clubs, which experienced a 3 per cent rise in members last year to 51,237. New members grew by 5 per cent and retention improved for the second consecutive year.

Meanwhile, the company is reviewing possible acquisitions and is exploring opportunities in the areas of beauty and spa, which it believes has the potential to further build on its membership profile.