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David Lloyd Leisure PLC

If you had considered where to invest your money ten years ago, the leisure industry might not __0__ immediately sprung to mind. It seems that David Lloyd, the former Davis Cup tennis player, knew better. His company was floated in March 1993 and shares could have been sold seven times __31__. The launch of the first club took place in Heston in 1982, __32__when a further six have opened, the __33__recent in Glasgow. With the profit from the flotation, a strong cash flow and existing banking facilities, the company is in a position __34__open two new centers a year.

The company expects to spend around£5 million developing each new club. New locations are currently __35__ sought in Birmingham Bristol and Manchester. In addition, planning application has been submitted for a site in Beckenham, South London and despite this very rapid progress, David Lloyd is keen to expand even __36__ quickly, saying “the market is totally underdeveloped.”

Initial joining fees account __37__ over 50% of turnover and at the time of flotation the club has some 33,000 family, individual and corporate members.

As might __38__expected, all the clubs have indoor tennis facilities, but these take up a large area in relation __39__the number of customers, club would not be profitable through tennis alone. As a result, they are moving away from racquet sports and putting greater emphasis on other areas, __40__ as fitness clubs with gyms and swimming pools


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