David Lloyd buys new site

SHARES in David Lloyd Leisure rose after an announcement yesterday that it had bought a development site and that the profit potential of its eight existing sports clubs had been enhanced, writes John Shepherd.

The shares rose 17p to 234p, or 56 per cent above the flotation price of 150p a year ago.

The consensus among analysts, who are considering upgrading their forecasts, is that Lloyd will make pounds 7.3m in the year to September this year and up to pounds 8.8m in 1994-95.

Lloyd said it had acquired a 7.5-acre site near Sutton Coldfield, West Midlands. It will house eight indoor and six outdoor tennis courts, an 11,000 sq ft gymnasium, indoor and outdoor swimming pools and squash courts.

Elsewhere, it said profits would improve at several clubs through enlarging gymnasiums, adding ten-pin bowling alleys and tennis lodges.