Holmes Place considers management buyout

Holmes Place has authorised its chief executive Allan Fisher and deputy chief executive Lee Ginsberg to explore a possible management buyout of the premium health club company.

If it does go private, it would echo last year's management buyout of rival operator Cannons in the wake of its falling share price.

Shares in Holmes Place rose 18 per cent when the news was revealed, but are still trading at half their value a year ago.

In its half year trading update, to 30 June, the company reported that it expects a 'satisfactory outcome' for the year as a whole. Like for like sales have, as predicted, remained flat for the past six months, but are expected to increase in the second half of the year.

Trading has been strong in Europe, however, where Holmes Place has 18 clubs across Portugal, Spain and Switzerland, with like for like sales up 13 per cent.

City of London clubs also performed well, but the company remains cautious regarding their future performance aware that it is a 'difficult marketplace'.

Secondary spend, particularly on personal training, has proved to be a positive trend and the group intends to focus on this, especially within established clubs with membership near capacity. Details: +44 (0)20 7795 4100