Esporta boss departs after profit warning

The commitment of Esporta members is waning

The chief executive of the Esporta chain of health and fitness clubs has stepped down by mutual consent.

His departure comes just days after a dismal trading statement revealed that new membership at the gym was falling.

And only 68% of current customers are retaining their membership for more than 12 months.

The company admitted that the fall in membership would directly impact on profits, resulting in them being "significantly below expectations".

The news shocked analysts, who had viewed gym operators as a sound investment in a fitness-conscious era.

Expansion plans

"In light of the trading statement last week, the board considered changing the management leadership was appropriate," an Esporta spokesperson said.

Esporta owns about 40 clubs in the UK as well as four in mainland Europe, and has plans to open 11 more in the next year.

Mr Coles, who will be temporarily replaced by non-executive chairman Michael Cairns, was upbeat about the company's prospects.

"I firmly believe Esporta will be able to take advantage of the growth opportunities in the health club industry both at home and abroad," he said on his departure.

Rumoured buy-out

Esporta's share price slumped 30% on the day after the trading statement.

But the prospect of a new boss cheered the markets on Monday, with shares closing 3p, or almost 6%, up at 54p.

Share trading was also encouraged by weekend press reports that Whitbread - owner of the David Lloyd Leisure chain of health clubs - is mulling a bid for Esporta's clubs.