Esporta looks to Europe despite drop in profits

Health club operator Esporta has announced a fall in its first half profits following an accelerated programme of openings.

Pre-tax profits for the six months to 30 June 2001 fell 60 per cent to £1.5m, but like-for-like sales were up 6 per cent and like-for-like operating profits rose 16 per cent to £10.1m.

Chair John Grieves said that the reduction in profits was due to an aggressive expansion plan: We remain committed to a continuing UK development programme. We expect to open a further three clubs by the end of the year.

Grieves added that the recent sale of the Espree clubs signalled a commitment to further concentration on the Esporta family brand, and expressed pleasure at improving retention rates.

After a slow start in Europe, Grieves said that memberships were increasing, and predicted a programme of expansion on the mainland: Europe offers a significant opportunity for us to rapidly develop the Esporta brand in an immature market place.