Next Generation profits rise to €4.4m

NEXT Generation Clubs, a chain of fitness centres backed by JP McManus, John Magnier and Denis Brosnan, saw profits grow by almost £1.8 million (€2.62m) in 2004.

Results for the company show pre-tax profits reached £3.04m (€4.4m) last year, helped by an expansion which saw three new clubs opened. Turnover increased from £29.6m (€42.9m) to £35.2m (€51m).

Chairman Denis Brosnan wrote in the accounts: “The group successfully opened its eleventh club in Cambridge and a twelfth in Hatfield during the year, giving the group greater national presence.

“During the year, the group also had a further club under construction in Gidea Park (Romford) and entered a contract to acquire land in Swindon. The group also has a number of other sites already acquired and is expected to develop further sites in due course.

“During 2004, the company’s ultimate parent undertaking launched an equity fund raising issue. This provided £3m (€4.35m) to the company and was utilised to continue the development programme of the business. In December 2004, the company successfully concluded an increase in its banking facilities to £104m (€151m).”

Next Generaton’s expansion saw long-term debt rise from £122m (€177m) to £153m (€221.8m) at the end of 2004. The interest payments on the debt was £4.75m (€6.9m).

But the increase in profits reduced the shareholders’ deficit from £3.9m (€5.65m) in 2003 to £2.2m (€3.2m). The company employed 892 people at its year end, an increase of 88, raising the annual wage bill by £600,000 to £9.6m (€13.9m).

Payment to directors were £396,000 (€574,000), up £28,000 on 2003. The highest paid received £229,000 (€332,000).

Turnover in 2005 will get an immediate boost from the acquisition of the plush Harbour Club in London for £16.1m (€23.3m).

The Chelsea-based club is popular with celebrities and it most famous member was the late Diana, Princess of Wales.

The Harbour Club had a 2004 turnover of £9.3m (€13.5m) and operating profits of £1.3m (€1.9m).

Next Generation Clubs was established by David Lloyd, the former British tennis star and is run by his son Scott.

Main investors in the club are the Coolmore Mafia of JP McManus, John Magnier and Michael Tabor.

Mr Brosnan, the former boss of Kerry Group, also has a small stake. He also acts as chairman of Coolmore’s other venture in Britain - the rapidly expanding Barchester nursing home group.

The former Wimbledon champion Billy Jean King is also a shareholder in Next Generation Clubs.

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