Esporta has announced improved performance and its decision not to continue discussions with third parties about takeover bids in its interim trading update.

The health and fitness club operator, which issued a profit warning earlier this year as a result of poor trading and disappointing new membership figures, recently cut 100 jobs and out sourced non core activities in a bid to save money.

This, in addition to the cost saving measures implemented by new chief executive, Maurice Kelly, means the group's trading for the crucial first quarter has been ahead of expectations.

Total revenue has risen to £28.3m, up 25 per cent on 2000, and the number of new members joining UK clubs is up 22 per cent.

Several clubs that opened last year with disappointing initial membership numbers have grown strongly. Total membership now stands at 205,000; an increase of 31 per cent against March 2001.

Revenue from joining fees was halved for the year, but a spokesman explained: 'We have concentrated more on marketing Esporta in the last few months, with drives such as eliminating joining fees.

'We found if we can get people to view our facilities, a significant proportion will join the club, so although we have lost out on joining fees, we have gained almost £2m in membership income.' Details: +44 (0)118 912 3500