LA Fitness shaping up in Spain

LA FITNESS has found three more sites for health clubs in Spain following the opening of its first overseas club in Barcelona last month.

With a second club already under construction in Madrid, the group should have five clubs open in Spain by July 2003. However, there are no plans for any other countries yet. Founder and chief executive Fred Turok said: 'We are taking a measured approach to Europe as a whole. There is still so much to do in the UK.'

Gearing is 70% and will rise substantially as the group calls on its £40 million debt facility to take it from 46 clubs to 74 by the middle of next year. With nine clubs opened in the first six months of this year, pre-tax profits rose 38% to £3 million on a 78% increase in sales to £21 million.

Stripping out the new openings, like-for-like sales at the 17 clubs open for more than two years rose by 9.8%. Fully-diluted earnings per share are up 40% to 4.9p and the dividend is 21% higher at 0.4p.