Clubhaus: Turnover Up,
Profits Down

Clubhaus, owners and operators of golf and health clubs throughout the United Kingdom and Europe, have increased turnover by 32 per cent to £19 million for the first six months of 2000. But even though the half-year figure represents a significant improvement on 1999's £14.4 million), the company's net profit has dropped from £3.4 million
to £813,000.

"The first half of 2000 has seen sustained growth in the underlying business
combined with exciting and successful developments," said managing director
Charlie Parker. "The profile of the income stream has moved more towards
greater membership subscriptions with less reliance on daily usage, which is
subject to seasonal fluctuations. This income stream better reflects the
country club concept which the group is rolling out.

"In 2000, we have already opened country clubs at Nizels, Mapledurham and
Meyrick Park, and The Tytherington has undergone a major expansion of its
facilities. Developments are planned at four further clubs including our
largest project to date, The Warwickshire. The continued growth in the
operating performance of the group has gone hand in hand with the increased
borrowings to fund the development, resulting in a higher financing charge."

Robert Bourne, the chairman of Clubhaus, said: "Our move towards a more
robust, broad-based leisure offering has allowed the group to perform ahead
of target. Extremely good membership sales have driven the results through
the second quarter of 2000, helped by the opening of the new country clubs
and an underlying increase in the number of golf members.

"Membership sales have continued to move forward strongly since the half
year, and the opening of Meyrick Park has confirmed the popularity of the
country club concept. The group must now embark on the second round of
development and exploit the acquisition opportunities that exist."

Clubhaus spent £9.3 million on various capital projects during the period,
and further expenditure is expected in the second half, so no interim dividend is
proposed. Administrative expenses before exceptional items increased to £6.5 million, compared to £4.5 million for the same period last year.

*From September 25, the head office of Clubhaus will be relocated from London
to Nizels Golf and Country Club in Kent. This will result in significant
overhead savings for the group.