Health club operator, Crown Sports, has significantly improved its financial health and is to focus on developing its Dragons Health Club brand in the future.

The operator, which recently released its results for the year ending 31 December 2003, said it was committed to the health and fitness market, which it believes holds good long term prospects.

Last year saw the company undergo significant structural and financial changes with the sale of Crown Golf to Bennelong for £15.4m, the disposal of The Winning Line to Last Race for £0.07m and the sale of Crown Content, the Australian publishing business to Sportsbrand Media Group for an initial consideration of £1m.

Since the year end, the company has also sold its Leamington Spa health club for £1.3m and in March, sold its Fitness Express business for £1.15m.

Such changes mean the company is operationally stronger to focus on the health and fitness business, said chair, Ray Pierce.

“The transitional year for Crown Sports is behind us and we can now concentrate fully on growing the core Dragons business,” he said.

The Dragons Health Club brand currently consists of 21 mid-sized health and fitness clubs across England offering gyms, swimming pools, spas and racquets and social facilities.

During 2003 the company reduced debt by 50 per cent to £18m and achieved an operating profit of £3m.

Turnover from the Dragons Health Clubs fell to £22.6m compared to £24.6 in 2002, mainly due to the ongoing pressure on joining fees and competitive marketing offers.

Operating profits however, improved by 32 per cent to £3.7m due to a reduction in central overheads and good club cost control.

Going forward the company aims to build on the success of the first quarter results of 2004, which have seen an 11 per cent increase in the number of new joiners on a like for like basis and a 13 per cent reduction in leavers, said chief executive, Martyn Grealey.

“In the short term, the market remains tough and highly competitive, but we are continuing to see encouraging growth in our membership levels as a result of highly effective retention programmes combined with strong marketing and club specific pricing strategies,” he said.