Clubhaus PLC announces that following the successful disposal of all of its non-core businesses, the core portfolio of eleven clubs has performed in line with management’s expectations during the first 11 months of the current financial year, which ends on 30th September 2003.
On a like for like basis the results for the 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 30th September 2003.
In this year’s Interim Report, which was published on 16th 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 22nd September 2003 to assist the Board in reviewing all the options available. A further announcement will be made in due course.
Clubhaus PLC www.clubhaus.com
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