Clubhaus PLC has announced the disposal of the business and the assets of both Stapleford Abbotts Golf Club, Essex and Chelsfield Lakes Golf Centre, near Orpington, Kent.
The announcement is in line with the Group strategy outlined in November 2000 which stated that there would be a review of the Group’s facilities that do not possess the potential to be developed into the Clubhaus country club format. The Clubhaus strategy is to continue to focus on the development and acquisition of its country club model which offers a broad-based leisure club that includes golf, health and fitness, ‘wellness’, accommodation and other ancillary leisure pursuits. Neither of the clubs being disposed of has the potential to be developed beyond the golf facilities that are currently being operated. It has been decided to divest these assets and reinvest the funds in the Group’s core business.
The two clubs have been sold to American Golf for a total of £6.6 million. The consideration comprises £4.95 million in cash at completion and a deferred payment of £1.65 million payable on or before 30 April 2001. Proceeds from the sales will be used in the short term to reduce Group bank borrowings.
In the year ended 31 December 1999 the profit after interest but before tax attributable to the assets and businesses being disposed of was £0.4 million from a turnover of £1.8 million. Due to inter-Group debt allocation the combined net assets were negligible. These numbers have been extracted from the audited accounts of the companies that owned and operated the clubs for the year ended 31 December 1999. The gross book value of the business and assets sold was approximately £6.6 million at 31 December 2000.
Commenting on the disposal, Charlie Parker, managing director of Clubhaus said
“We are pleased to announce the disposal of these two clubs which unfortunately do not contain the necessary key elements of planning permissions and space to allow their development into our successful Country Club format.
“The seven UK Country Clubs that are currently operational have continued to trade well since the announcement of the Third Quarter results and have enjoyed extremely encouraging membership sales in the first month of 2001. We intend to announce the results for the year ended 31 December 2000 towards the end of March 2001.”
Clubhaus continues to be in talks which may or may not lead to an offer being made for the company. A further announcement will be made in due course.