PGA European Tour Courses PLC reports a significant reduction in turnover during the year ended 31st December 1998 which reflects the consolidation of the Group’s operations in 1997. As a result of this consolidation and tighter management of assets operating profit margins improved to 23.2% from what was considered to be an unacceptable low of 9.9%.
Neil Coles MBE, Chairman, has announced further disposals of non-core assets, including today’s sales of development land at Collingtree and Quinto do Lago for £1.48 million, which have realised a total of £9.5 million since June 1997.
Capital investment during the year amounted to £3.98 million. Course construction at Catalunya in Spain and at Woburn is proceeding to plan with openings scheduled for June 1999 and 2000 respectively.
Neil Coles commented, “The benefits of our strategic refocusing on flagship tournament courses are now clearly evident. The disposal of non-core assets is largely complete and we are now in a position to move forward. We remain watchful for acquisition opportunities which fit our strict investment and course quality criteria.”