These notes attract interest at 13% a year, though the interest is rolled up and does not fall due until 2017.
#Llyod banks net wortht professional
The clubs were merged with Next Generation Clubs, a rival business run by Scott Lloyd, whose father – a former British tennis professional – had founded the David Lloyd chain that bears his name, selling it in 1995 to Whitbread.īallooning balance sheet liabilities include £183m in loan notes held by the group's own shareholders. The bank took an equity stake as well as providing the acquisition debt financing. The business was bought in August 2007 from leisure conglomerate Whitbread in a £925m joint venture backed by the Livingstone brothers and Bank of Scotland. During that time it is keen to thrash out a debt restructuring before loan covenants tighten further. The directors warned that even after a string of cost cuts, the group, which employs 4,500 staff, will only narrowly stay within its banking covenants in the next 12 months. "The current economic conditions create uncertainty particularly in relation to membership levels and property values."
The chain opened its 90th club, in Farnham, Surrey, last year and another opening in Worcester is scheduled for December.īut a more gloomy picture emerged in the small print to the accounts. Meanwhile, the company's balance sheet sank further into the red, with the net deficit ballooning 75% to £189m – including £26m of current liabilities.ĭirectors insisted they were "pleased with the performance", noting that turnover had been broadly flat at £319m. The latest accounts for David Lloyd show the group's losses more than doubled from £34.8m to £82.2m last year. The business's debt burden is a legacy of a controversial takeover backed by Bank of Scotland just weeks before the credit crunch brought an abrupt end to a glut of leveraged buyout deals. David Lloyd Leisure, one of Britain's largest gym and tennis club chains, is facing a painful refinancing of its towering £365m debt pile in a deal likely to wipe out millions invested by property tycoons Ian and Richard Livingstone.
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