The chief executive of healthclub operator Esporta today quit, just days after the group issued a shock profits warning.
Esporta said Graham Coles, who has held the post since 1999 and was on a basic salary of £220,000 pa, had left “by mutual agreement”.
A spokesman added: “In light of the trading statement last week, the board considered changing the management leadership was appropriate.”
The statement, which was released just after the market closed on Tuesday, stunned the City.
The group said it was struggling to attract members and full-year profits would therefore be “significantly below” market expectations.
Shares in Esporta plunged to a record low of 48.5p when the market reopened the following day.
Non-executive director Michael Cairns will take over as acting chief executive while a replacement for Coles is sought.
Chairman John Grieves said the group was “fortunate” to have Cairns in the top job.
He also sought to dispel some of the gloom of Tuesday’s update, commenting: “I firmly believe Esporta will be able to take advantage of the growth opportunities in the health club industry both at home and aboard.”
Coles’ departure also coincides with speculation that hotel and leisure group Whitbread is mulling over a £100m bid for Esporta.
A spokesman for Whitbread – owner of the David Lloyd Leisure chain of healthclubs – played down the report as just market rumour.
Esporta, based in Wokingham, Berkshire, owns around 40 clubs in the UK, as well as four in mainland Europe.
Shares in Esporta jumped 7%, or 3.5p, to 54.5p.
EGi News 22/10/01
