ANNUAL REPORT AND ACCOUNTS 2002 DRAGONS PROMISE
In 2002 we successfully launched the “Dragons
Promise” retention programme which focusses on
delivering the personal goals of our members. Using a
structured induction it emphasises the core values of
our clubs; friendliness, service and the delivery of
guaranteed results. 
MARTYN GREALEY 
Chief Executive 
THE PROMISE Turnover £37.0m (2001: £31.6m)
Operating profit (pre-exceptional items) £4.3m (2001: £6.5m)
Exceptional items £8.4m (2001: £19.4m)
(relate primarily to businesses disposed 
of in 2003 or where currently in 
negotiation for disposal)
Pre tax loss £6.1m (2001: £14.8m)
Earnings per share (pre-exceptionals) 0.4p 1.1p
Basic loss per share (2.5p) (5.9p)
Net borrowings at year end £35.7m (2001: £48.3m)
Dragons turnover £24.6m (2001: £21.3m)
Dragons operating profit £6.0m (2001: £6.0m)
(pre-goodwill amortisation)
One HIGHLIGHTS
Year ended 31 December 2002
CONTENTS
Highlights 1
Chairman’s Statement 2
Chief Executive’s Review 4
Map of Locations 7
Operating and Financial Review 8
Board of Directors 12
Directors’ Report 14
Remuneration Report 16
Corporate Governance 19
Statement of Directors’ Responsibilities 23
Independent Auditors' Report to the Shareholders 24
Group Profit and Loss Account 26
Group Balance Sheet 27
Balance Sheet 28
Group Statement of Total Recognised Gains and Losses 29
Reconciliation of Movements in Shareholders’ Funds 29
Group Cash Flow Statement 30
Notes on the Financial Statements 31
Corporate Information 53
Club Locations 54 CHAIRMAN’S STATEMENT Two
In a challenging year for the leisure industry, and for
health and fitness clubs in particular, I can report that
we performed creditably at the operating level, with
profits before exceptional items of £4.3m against
£6.5m last year, and an operating loss of £6.2m (2001:
£5.9m) after exceptional items. All of the profit
reduction was in our non-core business with flat health
and fitness profits.
Our interim statement, last September stated: “Trading
looks likely to continue to be tough for the remainder
of the year. However, we are tackling the conditions
realistically and are ensuring costs and overheads are
tightly controlled.” This proved to be an accurate
diagnosis, and by taking action on costs early we were
able to protect operating profits. Mid year the
management team made significant progress in quickly
reducing both the Plc and operating overheads of the
business. As a result the company is now leaner, more
focussed and well positioned in the current trading
environment.
The events in the final quarter of 2002 involving the
offer for the company by Bennelong were expensive
and potentially disruptive, but we were pleased to
negotiate an agreement that ensured a 40%
improvement on the original offer to those
shareholders wanting to accept cash. The 7 pence a
share offer also represented a 280% improvement over
the lowest level which the Crown Sports Plc share
price reached during the year. I am also pleased to
report that, despite the potential distraction, the
management team continued to focus on operational
matters, thereby ensuring that a creditable financial
result was achieved for the year. 
It is also worth restating the key elements of the
agreement reached with Bennelong, namely that:
• the Company would focus on its core Health and
Fitness business, and would dispose of its other
businesses;
• the proceeds from the sale of the non-core
businesses would be used to pay down debt;
• the Board would be restructured, creating a more
stable environment for operational management.
We have made progress against all of these objectives.
We are focussing on building a successful health and
fitness clubs business which members, employees and
shareholders can profit from and enjoy. The economic
environment in which we are operating is hardly
helpful, but we are nonetheless achieving satisfactory
progress. Once the economic scene is brighter, I am
confident this progress will be reflected in significant
improvements in shareholder value.
2002 RESULTS
During the second half of 2002 we sold our 9.9% stake
in Esporta Plc, using the proceeds of £14.5m to retire
debt, and this resulted in a book profit of £2.9m,
which is shown in the year-end accounts. Similarly, at
the end of 2002 we agreed to sell Crown Golf to
Bennelong, for the sum of £15.4m. This transaction
was completed on 8 January 2003, and £13.9m of the
proceeds was used for a further debt repayment.
Assuming the money had been received by 2002 year
end our net debt position would have been £21m,
representing a gearing of 41%, a substantially healthier
position than at the end of 2001, when net debt was
£47m (excluding member advances).
As previously noted, our strategy is now to focus on
the health and fitness business, and we are therefore in
discussions to dispose of both The Winning Line and
Crown Content. It is unfortunate that market
conditions have continued to deteriorate as
negotiations have progressed, but I am hopeful that
these deals will be concluded in the near future.
Ray Pierce
Chairman Three
These results include significant negative exceptional
items relating to the non-core Crown Golf, The
Winning Line and Crown Content businesses. The
overall result, we believe, is that the company’s assets
are now valued at a realistic level.
Returning to our operating results, turnover increased
from £31.6m to £37.0m, although this included the
positive effect of full year operations at the acquired
Axis and Trainstation health and fitness clubs, and the
negative effect of franchising food and beverage
operations in several clubs. Group operating profit was
£4.3m before exceptional items, compared with £6.5m
in 2001. However, the bulk of the reduction resulted
from poor trading performance in The Winning Line
and Crown Content. Crown Golf was down by £0.3m,
while the core business, Dragons, was flat. 
In the circular to shareholders dated 9 December
2002, we highlighted a number of revenue enhancing
and cost saving initiatives, which we are currently
implementing. Martyn Grealey describes these in more
detail in his report, and we expect to be able to report
more progress in these areas at our 2003 half-year
announcement.
OUTLOOK
We entered 2003 with a clear vision of what we want
to achieve this year. We will complete the disposal of
Crown Content and The Winning Line, and turn
Crown Sports Plc into a pure health and fitness
operator. We will continue to drive operational
excellence, working hard at maintaining and
improving margins through keeping a careful eye on
our cost base, and delivering new initiatives aimed at
recruiting and retaining members. We will continue to
invest in maintenance and upgrading the current
portfolio of clubs and will benefit from not having any
clubs in development.
The health and fitness sector is experiencing for the
first time the pressures of relative maturity, and
different management skills will be required to return
the sector to a growth path. We expect tough trading
conditions throughout 2003, and well into 2004.
However, we believe we are well placed to respond
successfully to these pressures because:
• management took early action to significantly
reduce the operating overheads of the business,
the benefits of which will flow through into the
current financial year;
• of the 22 Dragons clubs that we operate 11 are
freeholds and 7 are long leaseholds. This provides
the company with a valuable platform of tangible
assets and a low operating cost base;
• our net debt is down to a manageable £21m,
representing a lower gearing of 41%;
• our management team, with a broad range of
experience in other sectors is experienced in
managing in tighter markets;
• our clubs are focussed on meeting and satisfying
our customer needs, and are differentiated from
the competition;
• we have a clear strategy and a stable management
and Board.
We believe that there is still substantial potential for
long term growth in the health and fitness sector, and
that growth will be re-established once current
economic uncertainties have been reduced. Our focus
will continue to be on improving our operations,
delivering profit growth, and improving shareholder
value. The year has started satisfactorily , and providing
market conditions do not deteriorate further we
should continue to progress.
Finally, I would like to thank all the staff of Crown
Sports Plc for their contribution to the company’s
performance during 2002.
Ray Pierce
Chairman
15 April 2003 The trading environment in 2002 through to the
present has thrown up a number of challenges for both
the health and fitness industry and the Crown Sports
health and fitness businesses. Weakening consumer
confidence and growing pressure on consumer
spending combined with competitive saturation in
certain markets has created unprecedented industry
uncertainty .
In order to actively manage our position through this
difficult period we have pursued two strategic aims. 
Firstly, we have focussed on improving the quality of
the members’ experience - and in particular the
achievement of their personal goals - in the drive to
improve sales and member retention. 
Secondly, the management team has worked hard to
significantly reduce the operating overheads of the
business. 
The Dragons and Fitness Express businesses quickly
recognised the changing conditions last year and as a
result reviewed all operating plans, processes and costs
within the business. The outcome was a profit
improvement plan developed mid year that has and
will continue to be implemented. The management
team took early and decisive action and as a result we
successfully achieved our objectives of;
• increasing the accountability and focus of the local
operational management teams particularly in the
key areas of delivering club sales and profitability;
• substantially reducing the level of central overhead
and club operating costs. This was achieved
through the elimination of layers of management
and low value adding overheads;
• more effective control of capital expenditure;
• improving buying terms by taking advantage of the
increased scale of the health and fitness business.
This has resulted in substantial financial savings
and more importantly operational improvements
in the way we manage the business. 
DRAGONS
Dragons operates 22 mid sized health and fitness
clubs across England that provide quality gym,
swimming, spa, racquets and social facilities.
In Dragons we have consolidated our business
following the acquisitions made in 2001 and retain our
position as one of the leading operators of health clubs
in the UK. 
The tough trading conditions resulted in our
membership declining by 5% to 51,000 adult
members by the end of December 2002. This took
place in a relatively mature estate where the youngest
club is almost 3 years old. T urnover grew by over 15%,
including the benefit of full year trading for the Axis
and Trainstation clubs, whilst club operating profits
remained flat.
In 2002 we actively pursued our longstanding
objective of being the “Friendly face of health clubs”
with a number of member based initiatives that
focussed on our core values of friendliness, service and
the delivery of member results. These, we believe,
reflect the needs of our increasingly mature member
base who use our mid sized format clubs. At an
average size of 20,000 sq ft with a gym, studio,
swimming pool, food and beverage and crèche
CHIEF EXECUTIVE’S REVIEW Four
Martyn Grealey
Chief Executive Five
provision the clubs appeal to the socially minded
member. Importantly, 15 clubs provide squash
facilities whilst five clubs provide tennis. In many
clubs these form a core part of our offering. 
In the latter part of the year we introduced the
“Dragons Promise”, a results based programme
available to all new members which is showing early
positive results in the area of member retention and
revenue generation. We have also introduced new
longer term membership categories that are aimed at
ensuring greater member satisfaction and improved
retention which are proving popular with our new
members.
The estate of clubs was further improved with £2.4m
invested in improving our facilities, including £0.6m
as part of the Trainstation acquisition integration
programme. In addition, major refurbishment projects
were undertaken at Brentwood, Epsom, Lincoln,
Maidstone and Western Avenue clubs.
Looking forward we continue to see tough trading
conditions with ongoing pressure on joining fees and
memberships. However, we believe that we are well
placed to face up to the difficulties ahead in part due
to;
• the full year benefit that the business will enjoy as
a result of the decisive management action taken in
the second half of 2002 to significantly reduce the
operating costs of the business; 
• a high exposure to the more loyal over 35’s market;
• a high percentage of freehold and long lease 
properties; 
• a strong social base due in part to the high racquets 
usage.
In 2003 we will continue to manage our business with
a focus on building higher value and more robust
longer term memberships, developing the retention
building “Dragons Promise” programme and striving
towards achieving a best in class operating cost base.
FITNESS EXPRESS
Fitness Express operates 27 health and fitness
clubs on a contract management basis in Europe
and the Middle East.
In 2002 Fitness Express maintained its position as the
leading operator of independently owned hotel health
clubs continuing its expansion strategy through its
partners. With over 21,000 paying members in
addition to the usage it attracts from hotel residents,
we enjoy a high percentage of usage by the growing
over 40’s market.
We currently operate 21 health clubs on behalf of our
partners in the UK taking full responsibility for the day
to day management of the health club element of their
businesses. Key to our success is the level of client
satisfaction with clear targets being set and achieved in
a number of key operational areas including health
and safety where we have developed significant
expertise. 
In 2002 progress was made with our relationship with
the Millennium and Copthorne group where in
addition to integrating the 9 “Le Club” operations in
the UK we also assisted in the group’s expansion
abroad. During 2002 we opened a new club in Abu
Dhabi and this year we have opened new clubs in
Sharjah and Agadir. In addition we have provided
brand management skills and expertise in the
Millennium and Copthorne “Le Club” health clubs in
Hannover, Calais and Paris. 
Looking forward we see opportunities for further
expansion as our high levels of expertise in the areas of
operations, training and health and safety management
are in demand from independent and chain hotel
operators keen to develop their on site health club
facilities. CHIEF EXECUTIVE’S REVIEW continued Six
CROWN GOLF AND OTHER BUSINESSES
In 2002 the Crown Sports Plc group companies
included three further businesses which are outside of
our core activities of health and fitness – these are
Crown Golf, Crown Content and The Winning Line.
Crown Golf is one of the leading owners and operators
of golf clubs within the UK, owning eight Golf Clubs.
This business was sold on 8 January 2003.
Crown Content is a publishing business based in
Melbourne, Australia which Crown Sports Plc
acquired in April 2001. The business specialises in
Guides, Newsletters and Books, with the emphasis on
sports publishing.
The Winning Line was acquired by Crown Sports Plc
in April 2001. At that time the business had two
elements – that of sports betting and racehorse
syndicated ownership. Following a review of the
business it was decided in 2002 to terminate the
racehorse syndication – all the horses have now been
sold. The business now focusses on specialised sports
betting. 
Following the sale of Crown Golf, the group is
reviewing its options for disposing of its interests in
Crown Content and The Winning Line. Going forward
we intend to focus exclusively on our core sector of
health and fitness.
Martyn Grealey
Chief Executive
15 April 2003 Fitness Express
Dragons
See pages 54 and 55 for 
details of club locations
43 clubs across the UK
LOCATIONS GROUP PERFORMANCE
Group operating profit (before exceptional items) was
£4.3m (2001: £6.5m). 
Group profit (before tax and exceptional items) for the
year ended 31 December 2002 was £2.2m compared
to £4.5m in 2001, and after exceptional items was
£6.1m loss (2001: £14.8m loss). 
In the year we have taken a number of exceptional
items relating to the restructure of our businesses and
the reassessment of a number of key balance sheet
values. These exceptional items, totalling £8.4m, are
described more fully below. 
Goodwill amortisation before exceptional items for the
year was £0.8m (2001: £0.5m) 
Earnings before interest, tax, depreciation and
amortisation (EBITDA) and before exceptional items,
was £7.8m compared to £8.8m in 2001.
Operating Results of Crown Sports Divisions
T urnover Operating Operating Operating
£m profit profit/ margin
(1)
before (loss) £m
exceptional £m
items
£m
Dragons Health Clubs 24.6 6.0 6.0 24.4
Fitness Express 3.5 0.3 0.3 8.6
Crown Golf 6.2 1.9 0.9 21.3
Clubs Division 34.3 8.2 7.2 –
Other Businesses 2.7 0.2 0.2 7.4
Central Costs – (3.3) (6.1) –
Goodwill and other tangibles
amortisation – (0.8) (7.5) –
Total 37.04.3(6.2)11.6
(1) Operating margin excludes exceptional items.
(2) Operating margin is calculated based on total club turnover of £8.9m
which includes turnover of clubs managed by the group where the
management fee payable equates to the profit generated.
Charges for goodwill have been shown separately
above to allow for better understanding of the
underlying trading of these businesses. The segmental
analysis set out in note 2 on page 33 to 35 includes the
goodwill charge within the net result of each business
segment. 
OPERATING AND FINANCIAL REVIEW Eight
DRAGONS HEALTH CLUBS
The Dragons health clubs business increased turnover
by 15% to £24.6m, whilst operating profit stayed flat
at £6.0m before exceptional items. Membership
decreased from 54,000 over the course of the year to
51,000. These figures include the benefit of a full years
trading from the 7 health clubs acquired during 2001
– 4 from Axis in April 2001 and 3 from Trainstation in
July 2001. 
FITNESS EXPRESS
During the first full year with Crown Sports Plc since
the acquisition of this business in April 2001 turnover
has increased by 94% to £3.5m and operating profit
has remained at £0.3m. This result for 2002 includes
the benefit of a full years trading, compared to 9
months in 2001. Membership numbers stand at
21,000 at the year end. 
CROWN GOLF
Underlying turnover increased by 5% and operating
profit before exceptional items decreased by 13.6% to
£1.9m. Membership grew over the course of the year
from 5,900 to 6,100 with 8 clubs trading throughout
the year. 
The Crown Golf business was disposed of on 8 January
2003 (see Post Balance Sheet Events below).
OTHER BUSINESSES
Other businesses comprise Crown Content and The
Winning Line. 
Crown Content achieved turnover of £1.9m (2001:
£2.0m) and operating profit of £0.1m before goodwill
amortisation and exceptional items (2001: £0.9m). 
The Winning Line achieved turnover of £0.8m 
(2001: £0.5m) and operating profit before goodwill
amortisation, exceptional items and minority interests
of £0.1m (2001: £0.2m).
The Group is currently in active negotiations with
potential purchasers of both of these businesses.
(2) Nine
EXCEPTIONAL ITEMS
Exceptional items are as follows:
£m
Impairment of Goodwill and
other tangible assets (see below) (6.7)
Impairment of Fixed Assets (see Fixed 
Assets below) (1.0)
Reorganisation/restructuring costs (0.4)
Provision for The Winning Line put option 
maturing April 2003 (0.9)
Bid defence costs (1.5)
Total operating exceptional items (10.5)
Amounts written back to trade investments 
(see Investments below) 2.9
Refinancing costs on early repayment of loans (0.8)
Total exceptional costs (8.4)
Re-organisation costs relate to write-off of termination
payments made to senior managers and Directors.
The put option maturing in April 2003 requires Crown
Sports Plc to purchase the remaining 30%
shareholding in The Winning Line currently held by
minority shareholders.
GOODWILL AND OTHER INTANGIBLE
ASSETS 
A review of the carrying value of goodwill and other
intangible assets arising on past acquisitions has led to
an impairment provision, which has no impact on the
business’s current year cash flows, being made of
£6.7m as set out below. 
Company
Amounts
written off
£m
Crown Golf 0.4
Crown Content 5.7
The Winning Line 0.6
Total 6.7
INVESTMENTS
On 29 December 2000 the Group acquired 11.3m
shares in Esporta Plc representing approximately 6.8%
of the issued share capital, for £11.8m. In March 2001
the Group acquired a further 5.2m shares at a total cost
of £4.9m taking the total shareholding to 9.9% of the
issued share capital. This investment was valued at
£11.6m at 31 December 2001, based on the market
value at that date, resulting in an impairment of £5.1m
in 2001. These shares were disposed of on 12 July
2002 for total proceeds of £14.5m, allowing a partial
reversal of this charge of £2.9m in 2002.
In March 2001 the Group also purchased 4.1m shares
in Clubhaus Plc at a total cost of £1.9m, representing
approximately 3.9% of the issued share capital. The
decision was made to write off the Clubhaus stake in
its entirety in 2001, and this is still considered to be
appropriate.
FIXED ASSETS
The carrying values of the Group’s health clubs and
golf clubs have been reviewed during the year and
amounts written down where considered appropriate
to reflect an impairment in the value of the properties.
This has resulted in an exceptional charge relating to
the golf club properties of £1.0m this year in line with
accounting requirements.
The Board considers this approach, which has no cash
impact, to result in a more appropriate representation
of the asset base of the business.
INTEREST
Net interest payable remained steady at £2.2m 
before exceptional items (2001: £2.2m). The charge
for the year including exceptional items was £3.0m
(2001: £2.2m).
Net interest excluding exceptional items was covered
1.9 times by operating profit before exceptional items. OPERATING AND FINANCIAL REVIEW continued Ten
TAXATION
The tax charge for the year was £1.0m (2001 restated:
£1.4m).
Taxation has been provided after taking account of tax
losses available from earlier years and a provision for
deferred taxation as required by Financial Reporting
Standard 19 ‘Deferred Taxation’.
EARNINGS PER SHARE
Earnings per ordinary share before exceptional items
were 0.4p (2001: 1.1p) and a loss per share after
exceptional items was 2.5p (2001 restated: 5.9p loss).
DIVIDENDS
The Board considers that opportunities exist to grow
the business profitably which represents the best use of
shareholders funds. Accordingly the Board does not
plan that dividends will be paid at this stage in the
development of our business. The Company currently
has a substantial deficit on distributable reserves.
CASH FLOW
Cash inflow from operating activities (before
exceptional items) for the year was £5.2m (2001:
£3.0m). Net cash inflows from capital expenditure and
financial investment was £11.4m (2001: £13.8m
outflow). The principal outflow was £3.1m (2001:
£7.0m) for capital expenditure on club development,
and the principal inflow was £14.5m from the sale of
fixed asset investments. 
The net cash outflow was £2.3m (2001: £7.4m),
funded through increased borrowings.
BANKING FACILITIES
Net debt at the year end amounted to £35.0m
(excluding members advances), resulting in a balance
sheet gearing ratio of 68%.
Bank facilities totalling £53.0m were arranged in April
2002. These replaced a range of facilities which had
previously existed within the business. Of the new
facilities £40.0m is a term loan repayable over 7 years.
The costs involved in arranging these facilities
amounted to £1.2m, which have been capitalised in
proportion to the extent of the debt outstanding.
As at 31 December 2002 the bank loans outstanding
under these facilities amounted to £33.5m. Following
the sale of Crown Golf on 8 January 2003 the loans
were reduced to £19.6m (see Post Balance Sheet
Events below). Following this transaction the balance
sheet gearing ratio reduced to 41%.
SHAREHOLDERS FUNDS
Shareholders funds reduced in the year by £7.3m to
£51.0m (2001 restated: £58.3m)
The retained loss for the year was £7.2m. 
Net assets per share at the balance sheet date were
17.6p per share (2001 restated: 20.9p).
ACCOUNTING POLICIES AND PRIOR YEAR
ADJUSTMENT
The Group adopted Financial Reporting Standard 19
‘Deferred taxation’ during 2002. This standard requires
full provision to be made for deferred taxation on all
types of timing differences except the particular
instances where the standard instructs not to fully
provide. The previous standard required provision
only to the extent that it was probable that the liability
would crystallise in the foreseeable future. Adoption of
this standard has required a prior year adjustment,
resulting in a reduction in opening reserves at 
1 January 2002 of £1.7m, and an increase in the 2002
deferred tax charge of £0.8m (2001: £1.2m).
TREASURY POLICES
The Board sets the treasury policies of the Group and
lays down parameters within which the various aspects
of treasury risk are managed.
Interest rate risk is managed through interest rate
derivatives which cap the group exposure to interest
rate increases but limit the benefits it derives from
reductions in interest rates. Eleven
At the year end, foreign currency borrowings
amounted to £4.5m, all in Australian dollars, which
provides a balance sheet hedge against the Group’s
Australian assets. 
POST BALANCE SHEET EVENT
The Crown Golf business was sold on 8 January 2003
for £15.4m. After deducting the costs of the sale and
the related costs incurred defending the Group against
takeover the net proceeds of £13.9m have been used to
repay bank debt. 
Diane Jarvis
Finance Director
Member of Executive Committee
15 April 2003 BOARD OF DIRECTORS Twelve
THE BOARD
The Directors of the company are currently:
RAY PIERCE
Non-Executive Chairman (57)
Ray Pierce joined the Board as Non-Executive Director
on 1 January 2001. He has taken on the role of 
Non-Executive Chairman with effect from 14 January
2003. He previously acted as the Senior Independent
Non-Executive Director.
Ray is Chairman of Homeowners Friendly Society and
Chairman of SPARKS Charity. He was formerly a
Director of Guardian Royal Exchange Plc, Chief
Executive, Robson Rhodes and Vice-President of
American Express.
MARTYN GREALEY
Chief Executive (44)
Martyn Grealey joined the Board as Executive Director
on 14 January 2003. 
Martyn has been Managing Director of the health and
fitness business of Crown Sports Plc since March 2002.
Prior to joining Crown Sports Plc, Martyn held the
position of Managing Director of Powerleague Group
Limited. He previously served as Managing Director
and also Marketing and Development Director of
Allied Domecq Leisure, Managing Director of Allied
Domecq Restaurants and Bars and Managing Director
of Ind Coope Retail.
NICK HABGOOD
Non-Executive Director (38)
Nick Habgood joined the Board as a Non-Executive
Director on 14 January 2003. Nick is UK Investment
Director with LMS Capital, the venture capital arm of
London Merchant Securities Plc and a major
shareholder in Crown Sports Plc. 
Nick is a Director of a number of venture capital
investments including AssetHouse Limited, Wesupply
Limited, Vio WorldWide Limited. Formerly Nick was
the Chief Executive of MAOSCO Limited, a technology
company which was backed by MasterCard
International and a group of the world’s leading banks. 
MAURICE KELLY
Non-Executive Director (44)
Maurice Kelly joined the Board as a Non-Executive
Director on 25 March 2003. 
In 2002, Maurice held the post of Chief Executive of
Esporta Plc the health and fitness clubs operator. Prior
to that Maurice was Chief Executive of easyEverything
which followed a seven year career with the Granada
Group where he held a variety of senior positions
including Managing Director of Granada Road Services
and Managing Director of Granada Entertainments.
The Directors who have served since 1 January 2002
are shown on page 14. Thirteen
AUDIT COMMITTEE
Ray Pierce Chairman
Nick Habgood (from February 2003)
Maurice Kelly (from March 2003)
Martin Knight (to January 2003)
REMUNERATION COMMITTEE
Ray Pierce Chairman
Nick Habgood (from February 2003)
Mark Hardgrave (from February 2003 to March 2003)
Maurice Kelly (from March 2003)
Martin Knight (to January 2003)
NOMINATION COMMITTEE
This committee comprises the entire board, due to the
small number of Directors.
EXECUTIVE COMMITTEE
The Executive Committee currently comprises:
Martyn Grealey
DIANE JARVIS (ACA)
Finance Director (38)
Diane joined Crown Sports Plc in November 2001 as
Clubs Division Finance Director and took on the role 
of Finance Director for the Group following the
departure of Steven Glew, however she does not 
sit on the main Board. Formerly she was Finance
Director/Managing Director of Medicentres (UK) Ltd.
Prior to this Diane held a variety of positions within
Courtaulds Plc, after having qualified as a Chartered
Accountant with Ernst & Young.
DAVE COURTEEN
Managing Director Fitness Express (38)
Dave was joint founder of Fitness Express in April
1987 and managed the business until its sale to Crown
Sports Plc in April 2001. He was a Board Director of
the Fitness Industry Association for six years including
two years as Honorary Chairman.
RISK MANAGEMENT COMMITTEE
The Risk Management Committee currently
comprises:
Martyn Grealey
Diane Jarvis
STEVE ROBERTS
Group Operations Manager (43)
Steve was appointed Health & Safety Manager in
March 2002 and promoted to Group Operations
Manager in March 2003. DIRECTORS’ REPORT Fourteen
The Directors have pleasure in presenting their report
and the financial statements of the Group for the year
ended 31 December 2002.
PRINCIPAL ACTIVITIES
The principal activity of the Group is the operation of
health and fitness facilities.
REVIEW OF THE BUSINESS AND FUTURE
DEVELOPMENTS
The Group’s performance during the year and
expected future developments are described in the
Chairman’s Statement on pages 2 to 3, the Chief
Executive’s review of the business on pages 4 to 6 and
the Operating and Financial Review on pages 8 to 11.
RESULTS AND DIVIDENDS
The trading results for the year and the Group's
financial position at the end of the year are shown in
the attached financial statements.
The Directors have not recommended payment of a
dividend.
DIRECTORS
The Directors who served the Company during the
year and subsequently were:
Executive Directors:
J R Chapman (resigned 14 January 2003)
M P Knight (resigned 14 January 2003)
S P Glew (resigned 9 August 2002)
M Grealey (appointed 14 January 2003)
Non-Executive Directors
R F Pierce
R A Rayne (resigned 14 January 2003)
N J Habgood (appointed 14 January 2003)
M W Hardgrave (appointed 14 January 2003,
resigned 25 March 2003)
M Kelly (appointed 25 March 2003)
RETIREMENT AND RE-ELECTION OF
DIRECTORS
R F Pierce retires by rotation and offers himself for 
re-election at the forthcoming Annual General
Meeting. M Grealey, N Habgood and M Kelly have all
been appointed since the last Annual General Meeting.
Each will offer himself for re-election at the
forthcoming Annual General Meeting.
DIRECTORS’ INTERESTS
The Directors who held office at 31 December 2002 or
subsequently had the following beneficial interests in
the ordinary shares of the Company as at the dates
shown:
At 31 December 2002 At 31 December
or date of appointment 2001
J R Chapman 205,000 205,000
1
M P Knight 21,500 –
R F Pierce 111,361 111,361
R A Rayne 100,000 –
2
M Grealey – –
N J Habgood – –
M Kelly – –
1
J R Chapman is a beneficiary of the Chapman
Discretionary Trust No 2 which owns 100% of
Bennelong and 100% of Sports Assets (International)
Ltd. Both of these companies are substantial
shareholders as noted below. 
2
R A Rayne is a Director of LMS Capital (Bermuda)
Limited, a substantial shareholder noted below. He is
also a Director of Westpool Investment Trust Plc who
own 2.7% of the issued ordinary share capital.
There have been no changes in Directors’ share
interests in the period from 31 December 2002 to 15
April 2003.
No Director had any contract of significance subsisting
during the year nor at 31 December 2002, nor was
materially interested in such a contract, with the
company or any of its subsidiary companies.
The market price of the ordinary shares at the end of
the financial year was 7.0p; the highest and lowest
ordinary share prices during the financial period were
19.0p and 2.5p respectively.
The average price over the financial year was 10.2p.
SUBSTANTIAL INTERESTS IN SHARE 
CAPITAL
The Directors have been notified of the following
substantial shareholdings of 3% or more in the
ordinary share capital of the Company as at 23 March
2003. Fifteen
Number of Percentage of
Ordinary Shares issued ordinary
share capital
Sports Assets
(International) Limited 80,371,086 27.64%
Bennelong UK Ltd 76,958,383 26.47%
LMS Capital (Bermuda)
Limited 50,000,000 17.20%
HSBC Global Custody
Nominee (UK) Ltd 18,332,960 6.31%
European Golf Club
Investment Limited 10,582,142 3.64%
The Bank of New York
(Nominees) Limited 9,167,040 3.15%
POLICY ON THE PAYMENT OF CREDITORS
It is the Group’s policy that payments to suppliers are
made in accordance with terms and conditions agreed
with suppliers at the time that the business
transactions are conducted, provided that the supplier
is also complying with all the relevant terms and
conditions. The company does not follow any code or
standard on payment practice. The Directors anticipate
that the policy will remain unchanged for the
foreseeable future. The number of days’ purchases
outstanding for the Group at 31 December 2002 is
calculated at 24 days (2001:39 days) and for the
Company at 31 December 2002 is calculated at 54
days (2001 – 39 days).
EMPLOYMENT POLICIES
Employees are encouraged to identify, and become
involved with the financial performance of the Group
and service to Club Members by ongoing internal and
external training and by means of bonus arrangements.
The Group has a policy of keeping employees up to
date with major developments by means of regular
staff meetings.
It is the policy of the Group not to discriminate against
disabled persons whether in, or applying for,
employment. Disabled applicants for employment or
those who become disabled while in the company’s
employment are not considered less favourably than
those without disabilities and appointments of
disabled people are made on the same terms and
conditions as other comparable employees without
disabilities. For the purposes of training, career
development and promotion, disabled employees are
treated in the same way as other employees. 
POST BALANCE SHEET EVENT
The Crown Golf business was sold on 8 January 2003
for £15.4m to Bennelong UK Ltd, a substantial
shareholder as noted above. This company is related to
Sports Assets (International) Ltd, also a substantial
shareholder noted above. This sale was approved by
the shareholders at an Extraordinary General Meeting
held on 8 January 2003. The net proceeds of the sale
were used to repay bank borrowings.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held at 10.00 am
on 28 May 2003 at the offices of Ashurst Morris Crisp,
Broadwalk House, 5, Appold Street, London. EC2A
2HA.
The notice of the Annual General Meeting and
explanatory notes regarding the business to be
transacted at the meeting are set out in the circular
accompanying this report and annual accounts.
AUDITORS
During the year CLB resigned as the company auditors
and the Directors appointed KPMG Audit Plc to fill the
casual vacancy arising. A resolution to re-appoint
KPMG Audit Plc as Auditors for the coming year will
be proposed at the Annual General Meeting. Special
notice has been received for this resolution pursuant to
Section 388 of the Companies Act 1985.
Signed by order of the Board of Directors
R F Pierce
Chairman
15 April 2003 PURPOSE 
The remuneration and emoluments of Executive Directors are determined by the Board based on the
recommendations of the Remuneration Committee. The composition of the Remuneration Committee is set out
on page 13. During 2002 the committee comprised R Pierce (Chairman) and M P Knight. 
The Committee's overall purpose is to ensure that the Company's Executive Directors are fairly rewarded and that
the remuneration of such Directors is independently approved and monitored.
The principal terms of reference of the Committee are as follows:
• To determine the Company's broad policy for executive remuneration and the entire individual remuneration
packages including, but not limited to, pension rights and any compensation payments and share option
entitlements for each of the Executive Directors and, as appropriate, other senior executives.
• To give full consideration to the Combined Code, including matters relating to disclosure, remuneration policy
and service contracts and compensation.
The fees of the Directors on the Remuneration Committee are agreed by the full Board.
The committee has access to independent advice where it considers appropriate, however no external advice has
been required during 2002.
TOTAL SHAREHOLDER RETURN
The following graph charts the total cumulative shareholder
return of the company since 1 January 1998.
The index selected was the FTSE Leisure and hotels index. This
is considered to be appropriate as it includes Crown Sports Plc
itself and a number of other health club operators.
BASE SALARY AND BENEFITS
The base salary and benefits of Executive Directors are normally reviewed annually, by the Remuneration
Committee. It is the aim of the Remuneration Committee to reward Executive Directors competitively and any
change reflects both business and individual performance.
Fees paid to M P Knight for the year reflect that his role included acting as Executive Director, participating actively
in the meetings of the Executive Committee throughout 2002.
Fees paid to R F Pierce for the year reflect the substantial additional input required following the bid for the
company by Bennelong in October 2002. 
The auditors are required to report on the information contained in the following section of the report
BONUSES
The Group operates a non-pensionable annual bonus scheme for Executive Directors and Senior Managers. The
financial targets set for bonuses are reviewed and approved by the Remuneration Committee.
No bonuses were payable to Executive Directors in respect of the year ended 31 December 2002.
PENSION SCHEME ARRANGEMENTS
The Company contributes an agreed sum to pension schemes of Executive Directors, which are externally
administered, for the benefit of Directors. 
REMUNERATION REPORT Sixteen
0
1998
Crown Sports – Total Return
TOTAL CUMULATIVE SHAREHOLDER 
RETURN FOR THE FIVE-YEAR PERIOD 
TO 31 DECEMBER 2002
FTSE Leisure & Hotels – Total Return
1999 2000 2001 2002
2
4
6
8
10
12 During the year contributions were made to the pension scheme of S Glew of £35,901 (2001 contributions:
£16,942). No payments have been made during the year to any other Director who served during 2002.
M Grealey was appointed Director on 14 January 2003. The company contributes 10% of his base salary
(excluding bonus and benefits) to his pension scheme.
COMPENSATION FOR LOSS OF OFFICE
Compensation for loss of office of £172,926 was paid to S Glew (including £42,868 in relation to pension
contributions) under the terms of a compromise agreement negotiated in line with his contractual terms.
Compensation for loss of office of £50,000 was paid to M P Knight reflecting the termination of the role of
Executive Director that he held during 2002.
DIRECTOR’S REMUNERATION
The emoluments in respect of qualifying services and compensation of each person who served as a Director
during the year were as follows;
Salary & fees Bonus Expense Healthcare Compensation 2002 Total 2001 Total
Allowance Benefits the loss 
of office
££££ ££ £
J R Chapman – ––––––
M P Knight* 65,000––– 50,000 115,000 15,000
S Glew 103,980 – – 356 172,926 277,262 116,042
R Pierce 65,000–––– 65,000 15,000
R Rayne – – – ––––
S J R Philpott – – – – – – 115,885
Total 233,980 – – 356 222,926 457,262 261,927
*Salary and fees paid to Merrycroft Ltd, compensation for loss of office paid directly to MP Knight.
Aggregate emoluments in respect of qualifying services to Directors, excluding pension contributions, amounted
to £234,336 (2001: £261,927).
Fees payable to Bennelong and LMS, in which J Chapman and R Rayne respectively have interests, in the year to
31 December 2002 are disclosed in note 22.
SHARE OPTION SCHEME
The Company operated the Crown Sports Plc Senior Executive Share Option Plan (the "Executive Plan"). The
Executive Plan enables options to be granted to Directors and employees of the Company and any subsidiary of
the Company . The scheme is not approved by the Inland Revenue for the purposes of the Income and Corporation
Taxes Act 1988. The Scheme is administered by the Board in the light of recommendations from the Remuneration
Committee.
Participation is at the discretion of the Board. However, in order to qualify, Executive Directors and employees
must devote substantially the whole of their working time to the affairs of the Group.
Options may usually be exercised between three and ten years after their date of grant. Earlier exercise is, however,
permitted on the death, disability , redundancy or retirement of the option holder, or the sale or transfer out of the
Group of the employing company , business or that part of the business to which the employment relates, or in any
other circumstances approved by the Board. The Remuneration Committee agreed that a percentage of future share
options grants to Directors would only be exercisable dependent upon performance criteria being achieved. 
Seventeen DIRECTOR’S SHARE OPTIONS
At 1 Jan Awarded Exercised Lapsed At 31 Dec Exercise Earliest Expiry
2002 2002 price date of date
exercise
M P Knight 1,000,000––– 1,000,000 30p 28 Dec 28 Dec
2003 2010
M P Knight 500,000––– 500,000 30p 13 May 13 May
2004 2011
S Glew 2,000,000 – – 2,000,000 – – – –
R F Pierce 250,000––– 250,000 30p 25 Jan 25 Jan
2004 2011
Following the departure of MP Knight in January 2003 his options shown above over 1,500,000 shares have now
lapsed.
M Grealey was appointed Director on 14 January 2003. He received a grant under the Executive Plan of 1,000,000
share options, exercisable at 12.5p, on joining the Group in 2002. 30% of the grant is subject to performance
criteria, requiring like for like Dragons operating profit to grow by an average of 10% per annum by 2004,
compared to each of 2003, 2002, 2001.
The highest and lowest prices of the company’s shares during the year were 19.0p and 2.5p respectively . The price
at the year end was 7.0p.
SERVICE CONTRACTS
None of the Executive Directors has a service contract which is terminable on greater than one year’s notice.
Apart from a fixed fee determined by the Board, the Non-Executive Directors have no service contracts and do not
receive any pension benefits. 
Martyn Grealey was appointed Chief Executive of Crown Sports Plc with effect from 14 January 2003. Prior to this
he had held the position of Managing Director of Dragons Health Clubs Limited. In line with company policy , his
service agreement has a notice provision of 12 months from the employer and 6 months from the employee and
there is no provision for loss of office included in the contract. His basic salary is not dependent on performance
criteria, however a discretionary bonus and the share options granted to him in 2002 are both subject to such
criteria. His potential annual bonus is principally based on group performance in terms of profitability and
exceeding profit targets. He is also entitled to a bonus dependent on future share price performance. His base
salary for 2002 was £100,000 and he received a bonus of £25,000 with respect to the year.
On behalf of the Board
R F Pierce
Chairman, Remuneration Committee
15 April 2003
REMUNERATION REPORT continued Eighteen The company is committed to high standards of Corporate Governance in line with Section 1 of the Combined
Code. 
APPLICATION OF PRINCIPLES OF GOOD GOVERNANCE
Directors
The Board commenced 2002 comprised of three executive and two non-executive Directors. The Executive
Directors comprised the Chairman, Deputy Chairman and Chief Operating Officer. The Group operated
throughout 2002 without a separate Chief Executive, following the resignation of the previous incumbent in 2001.
In the absence of a Chief Executive, the Deputy Chairman assumed this role until July 2002 when the role was
assumed by the Chairman. However, following the appointment of Martyn Grealey as Chief Executive on 
14 January 2003 there is a now a clear delineation of responsibility between the Chairman and the Chief Executive.
Following changes during the year and in early 2003 the Board currently comprises one executive and three non-
executive Directors. Each Director submits himself for re-election at least every three years. 
During the whole of 2002 Ray Pierce had been designated the senior independent non-executive Director, who
continues in this role after he was appointed Chairman of the Board on 14 January 2003. Biographical details of
the Directors are given on page 12. 
The Board of Directors meets regularly (not less than six times a year) and has a schedule of matters specifically
reserved to it for decision. It has delegated authority to Committees of the Board on other specific matters. The
day to day management of the Group’s businesses is delegated to the Chief Executive assisted by certain other
senior managers who together form the Executive Committee. Details of the Audit, Remuneration and Nomination
Committees are given below. 
All Directors have access to the advice and services of the Company Secretary and to independent professional
advice, if required, at the Company’s expense and receive appropriate training on joining the Board. Cargil
Management Services Ltd were appointed as Company Secretary to the Group during September 2002.
All Directors appointed during the period will seek reelection at the first AGM following their appointment.
The Board has established the following committees, to facilitate its operations:
THE AUDIT COMMITTEE
The Audit Committee meets no less than three times a year and assists the Board in reviewing the effectiveness of
internal control systems. The Committee also reviews financial statements to be published externally before their
submission to the Board. It also authorises changes in accounting policies.
The Committee reviews and approves terms of reference and fees of the external auditors and considers their
independence. The Committee meets at least annually with the external auditors without management present.
THE REMUNERATION COMMITTEE
The Remuneration Committee meets not less than twice a year and is responsible for determining the
remuneration packages of Executive Directors and Senior Management. The report on Director’s remuneration on
page 16 gives full details of the company’s policy on executive remuneration and of individual Director’s
remuneration packages.
No Director is present during any meeting of the remuneration committee at which his own remuneration is
discussed. The fees of the non-executive Directors are a matter for the Board as a whole.
Nineteen CORPORATE GOVERNANCE THE NOMINATION COMMITTEE
The Nomination Committee comprises the entire board, due to the small number of Directors. The whole Board
considers the appointment of new Directors.
THE EXECUTIVE COMMITTEE
The Executive Committee meets monthly and is not a committee of the Board. Its role is to assist the Chief
Executive in fulfiling his responsibilities for directing and promoting the profitable operation and development of
the Group. During 2002 the Deputy Chairman headed the Executive Committee on behalf of the Board. Since
January 2003 the Committee has been led by the Chief Executive.
The composition of each of these Committees is given on page 13.
INTERNAL CONTROL
The Board is ultimately responsible for the Group’s system of internal control and for reviewing its effectiveness.
However, such a system is designed to manage rather than eliminate the risk of failure to achieve business
objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.
The Directors review the effectiveness of the Group’s system for all internal controls annually, including financial,
operational, compliance, and risk management. The Board confirm that it has established procedures necessary to
comply fully with the Turnbull Guidance ‘Internal Control Guidance for Directors on the Combined Code’.
The control framework and key review processes in place over the various business and geographical operations
of the Group are as follows:
• The Board sets corporate strategy and business objectives. The Executive Committee and divisional
management must integrate these objectives into their operational and financial business plans for presentation
to the Board. Where areas for improvement in the system of Internal Control are identified, the Board considers
the recommendations made by the Executive Committee and the Audit Committee;
• The Executive Committee meets regularly together with other senior executives to consider group operational
and financial performance and business development. The Chief Executive reports to the Board on behalf of
the Executive Committee on significant changes in the business and external environment. The Group’s
Finance Director provides the Board with monthly financial information which includes key performance and
risk indicators;
• The management of each business unit has been charged with the ongoing responsibility for identifying the
risks facing the unit and for putting in place procedures to mitigate and monitor risks. Management report
regularly on their review of risks and how they are managed to the Executive Committee;
• The Group has established a Risk Management Committee with responsibility for ensuring key risks are
identified, the potential impact is assessed and action is taken to mitigate the risks concerned. The Risk
Management Committee reports to the Audit Committee on a regular basis;
• The Audit Committee on behalf of the Board reviews the effectiveness of the Group’s risk management process
and refers significant risks to the Board for consideration. The Audit Committee review reports from the
external auditors on the system of internal control, including the identification of material weaknesses. The
Audit Committee discusses with management the actions taken in relation to all problem areas identified. The
Chairman of the Audit Committee reports to the Board on the outcome of the Audit Committee meetings held
and the Board receives the minutes of all such meetings;
CORPORATE GOVERNANCE continued Twenty • The Treasury position of the Group, including cash position and foreign exchange exposure is managed
centrally and is the responsibility of the Group’s Finance Director who attends all Board meetings. Reports and
forecasts are submitted monthly to the Board;
• Financial forecasts are prepared routinely throughout the year for review by the Board, with sensitivity analysis
where appropriate, and include details of the Group’s on-going compliance with its regulatory and banking
requirements. The Group has set investment appraisal and authorisation procedures and capital expenditure
is reviewed against budgets which have been approved by the Board;
• There are supporting group policies and employee procedures for the reporting and resolution of suspected
fraudulent activities. It is the aim of the Group to employ and train staff and management of high integrity , and
compliance with external regulation and internal policies is demanded from all staff.
The Board has carried out a specific assessment of the company’s system of internal control in operation during
the year ended 31 December 2002 and up to the date of this Annual Report and Accounts through the monitoring
process described above. The Audit Committee and Risk Management Committee have assisted the Board in
discharging these review responsibilities.
GOING CONCERN
The Board continues to adopt the going concern basis in preparing the accounts as after making appropriate
enquiries it considers that the Group has adequate resources to continue in operational existence for the
foreseeable future.
COMPLIANCE STATEMENT
Certain circumstances during 2002, including the events of the final quarter involving the offer for the company
by Bennelong and the lack of Chief Executive throughout the year, have made full compliance with the Combined
Code difficult to achieve. 
An agreement was negotiated with Bennelong towards the end of the year that governs the composition of the
Board from January 2003. The agreement required the Board to be reconstituted to specifically include:
• new independent Non Executive Chairman
• Chief Executive 
• Non Executive Director nominated by London Merchant Securities Plc & European Golf Club Investment Ltd
• Non Executive Director nominated by Bennelong Group Ltd.
The agreement also limits the Board to four Directors unless unanimously agreed by the Directors, and requires
that any change in the composition of the Board from that stated above can only be made with the approval of the
majority of the Board. Under the terms of this agreement two of the Non Executive Directors are not fully
independent as they have been nominated by specific shareholders. However, these Directors are fully
independent of management and recognise their responsibilities to act in the best interests of shareholders as a
whole.
Twenty One The Board has failed to comply fully with the Code provisions set out in Section 1 of the Combined Code during
the period from the start of 2002 to the current date as follows:
Despite the areas of non-compliance discussed above the Board consider that during 2002 these committees
functioned effectively as then constituted. Following further review the Board considers that the committees will
continue to function effectively going forwards despite the continuing areas of non-compliance discussed above.
Code Provision Area of the code covered
A.2.1 Separation of role of
Chairman and Chief
Executive
A.2.1 Appointment of a
Senior Independent
Non-Executive
Director
A.3.2 Majority of Non-
Executives should be
independent
A.5.1 Majority of the
nominations
committee should be
Non Executive
B.2.2 Remuneration
Committee should
consist exclusively of
Independent Non
Executives
D.3.1 Audit Committee 
to comprise at 
least three Non
Executives, majority of
whom are
independent
For a period in the latter half of 2002 the posts of Chairman and Chief Executive
were held by Jeff Chapman. This change was precipitated by the departure of
the then Chief Operating Officer. Since Jeff Chapman relinquished his executive
responsibilities in November 2002 compliance with this area of the code has
been achieved.
The Board complied with this provision during 2002, with the post being held
by Ray Pierce. Following the Board changes on 14 January 2003 where Ray
Pierce was appointed Chairman, due to the requirements of the agreement
described above, there is no fully independent Director other than the Chairman
who could be appointed to this post. Thus the Board will not comply with this
provision of the code going forward.
During 2002 there were two Non Executive Directors, one of whom was fully
independent, the second was nominated by London Merchant Securities Plc,
therefore a majority were not fully independent. From 14 January under the
terms of the agreement described above neither of the Non Executive Directors
are fully independent. Therefore the Board will not comply with this provision
going forwards.
The nominations committee comprises the full Board. During 2002 the
composition of the Board was such that the provision was not fulfiled, however
following changes to the Board from 14 January 2003 full compliance with this
provision of the code has been achieved.
During 2002 the remuneration committee comprised Ray Pierce and Martin
Knight. When the committee was formed with these members compliance with
the code was achieved. However, when Martin Knight’s role changed from Non
Executive to Executive Deputy Chairman in early 2002 there was non-
compliance until 14 January 2003. Since the Board changes on 14 January 2003
full compliance has also not been achieved as the Non Executive Directors
(other than the Chairman) are not fully independent. Therefore non-compliance
will continue going forward.
This provision has not been met in 2002 and non-compliance will continue
going forwards. During 2002 the Audit Committee comprised Ray Pierce and
Martin Knight, and following the appointment of Martin Knight as Executive
Deputy Chairman resulted in the Committee only having one independent Non
Executive member. Following the Board changes on 14 January 2003 the Audit
Committee does now comprise three Non Executive Directors, however due to
the agreement discussed above only one of these Directors is independent.
CORPORATE GOVERNANCE continued Twenty Two STATEMENT OF DIRECTORS’ RESPONSIBILITIES
Company law requires the Directors to prepare financial statements for each financial year which give a true and
fair view of the state of affairs of the company and of the group and of the profit or loss for that period. In preparing
those financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures disclosed
and explained in the financial statements; 
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company and the group will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at
any time the financial position of the company and to enable them to ensure that the financial statements comply
with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to
them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.
R F Pierce
Chairman
15 April 2003
Twenty Three STATEMENT OF DIRECTORS RESPONSIBILITIES  We have audited the financial statements on pages 26 to 52. We have also audited the information in the Directors’
remuneration report that is described as having been audited.
This report is made solely to the company’s members, as a body , in accordance with section 235 of the Companies
Act 1985. Our audit work has been undertaken so that we might state to the company’s members those matters
we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the company and the company’s members as
a body, for our audit work, for this report, or for the opinions we have formed. 
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The Directors are responsible for preparing the Annual Report and the Directors’ remuneration report. As
described on page 23, this includes responsibility for preparing the financial statements in accordance with
applicable United Kingdom law and accounting standards. Our responsibilities, as independent auditors, are
established in the United Kingdom by statute, the Auditing Practices Board, the Listing Rules of the Financial
Services Authority, and by our profession’s ethical guidance. 
We report to you our opinion as to whether the financial statements give a true and fair view and whether the
financial statements and the part of the Directors’ remuneration report to be audited have been properly prepared
in accordance with the Companies Act 1985. We also report to you if, in our opinion, the Directors’ report is not
consistent with the financial statements, if the company has not kept proper accounting records, if we have not
received all the information and explanations we require for our audit, or if information specified by law regarding
Directors’ remuneration and transactions with the group is not disclosed. 
We review whether the statement on page 21 reflects the company’s compliance with the seven provisions of the
Combined Code specified for our review by the Listing Rules, and we report if it does not. We are not required to
consider whether the board’s statements on internal control cover all risks and controls, or form an opinion on the
effectiveness of the group’s corporate governance procedures or its risk and control procedures.
We read the other information contained in the Annual Report, including the corporate governance statement and
the unaudited part of the Directors’ remuneration report, and consider whether it is consistent with the audited
financial statements. We consider the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements. 
BASIS OF AUDIT OPINION
We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial
statements and the part of the Directors’ remuneration report to be audited. It also includes an assessment of the
significant estimates and judgements made by the Directors in the preparation of the financial statements, and of
whether the accounting policies are appropriate to the group’s circumstances, consistently applied and adequately
disclosed. 
We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements
and the part of the Directors’ remuneration report to be audited are free from material misstatement, whether
caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of
the presentation of information in the financial statements and the part of the Directors’ remuneration report to be
audited.
INDEPENDENT AUDITORS’ REPORT Twenty Four
TO THE MEMBERS OF CROWN SPORTS PLC OPINION
In our opinion:
• the financial statements give a true and fair view of the state of affairs of the company and the group as at 
31 December 2002 and of the loss of the group for the year then ended; and 
• the financial statements and the part of the Directors’ remuneration report to be audited have been properly
prepared in accordance with the Companies Act 1985.
KPMG Audit Plc
Chartered Accountants
Registered Auditor
15 April 2003
Twenty Five Note Before Exceptional Total 2002 Before Exceptional Total 2001
Exceptional Items Exceptional Items Restated
Items Items Restated
Restated
£’000 £’000 £’000 £’000 £’000 £’000
Turnover:
Continuing operations 2 30,793 – 30,793 25,644 – 25,644
Discontinued operations 2 6,225 – 6,225 5,921 – 5,921
Total turnover 37,018 – 37,018 31,565 – 31,565
Cost of sales (3,644) – (3,644) (3,062) – (3,062)
Gross profit 33,374 – 33,374 28,503 – 28,503
Administrative expenses 4 (29,732) (10,490) (40,222) (22,726) (12,362) (35,088)
Other operating income 679 – 679 686 – 686
Operating profit/(loss):
Continuing operations 2,470 (9,048) (6,578) 4,293 (3,912) 381
Discontinued operations 1,851 (1,442) 409 2,170 (8,450) (6,280)
Total operating profit/(loss) 2,3 4,321 (10,490) (6,169) 6,463 (12,362) (5,899)
Income from fixed asset investments 149 – 149 232 – 232
Amount written back to (written off)
investments 13,4 – 2,893 2,893 – (7,008) (7,008)
Net interest payable and similar charges 6,4 (2,243) (776) (3,019) (2,151) – (2,151)
Profit/(loss) on ordinary activities
before tax 2,227 (8,373) (6,146) 4,544 (19,370) (14,826)
Tax on loss on ordinary activities 7 (1,021) (1,410)
(Loss) on ordinary activities
after tax 8 (7,167) (16,236)
Minority interests (3) (66)
Loss for the financial year (7,170) (16,302)
Basic and diluted loss per share (pence) 10 (2.5) (5.9)
Basic and diluted earnings per share
(pence) before exceptional items
and investments written off 10 0.4 1.1
GROUP PROFIT AND LOSS ACCOUNT Twenty Six
Year Ended 31 December 2002 Note 2002 2001
Restated
£’000 £’000
Fixed assets
Concessions, licences, trademarks and similar rights 11 1,301 4,931
Goodwill 11 7,348 11,427
Negative goodwill 11 (1,877) (1,916)
5,471 9,511
Total intangible assets 11 6,772 14,442
Tangible assets 12 87,324 87,456
Other investments 13 – 11,589
Total fixed assets 94,096 113,487
Current assets
Stocks 14 675 877
Debtors 15 2,698 3,161
Investments 16 72 72
Cash at bank and in hand 470 2,757
3,915 6,867
Creditors: Amounts falling due within one year 17 (12,724) (32,584)
Net current (liabilities) (8,809) (25,717)
Total assets less current liabilities 85,287 87,770
Creditors: Amounts falling due after more than one year 18 (31,596) (27,619)
Provisions for liabilities and charges 20 (2,571) (1,734)
Net assets 51,120 58,417
Capital and reserves
Called up share capital 23 14,538 14,538
Share premium account 24 59,826 59,826
Capital redemption reserve 24 1,250 1,250
Profit and loss account 24 (24,601) (17,301)
Shareholders funds 51,013 58,313
Minority interests 107 104
Total capital employed 51,120 58,417
These financial statements were approved by the Board of Directors on the 15 April 2003 and are signed on their
behalf by:
R F Pierce M Grealey
Twenty Seven GROUP BALANCE SHEET
Year Ended 31 December 2002 Note 2002 2001
Restated
£’000 £’000
Fixed assets
Tangible assets 12 1,586 1,591
Investments 13 41,646 58,755
Total fixed assets 43,232 60,346
Current assets
Stocks 14 28 52
Debtors 15 40,077 15,018
Cash at bank and in hand – 1,071
40,105 16,141
Creditors: Amounts falling due within one year 17 (6,873) (15,763)
Net current assets 33,232 378
Total assets less current liabilities 76,464 60,724
Creditors: Amounts falling due after more than one year 18 (31,263) (21)
Provisions for liabilities and charges 20 5 (26)
Net assets 45,206 60,677
Capital and reserves
Called-up share capital 23 14,538 14,538
Share premium account 24 59,826 59,826
Capital redemption reserve 24 1,250 1,250
Profit and loss account 24 (30,408) (14,937)
Equity Shareholders funds 45,206 60,677
These financial statements were approved by the Board of Directors on the 15 April 2003 and are signed on their
behalf by:
R F Pierce M Grealey
BALANCE SHEET Twenty Eight
Year Ended 31 December 2002 Group
2002 2001
Restated
£’000 £’000
(Loss) for the financial year (7,170) (16,302)
Loss on foreign currency translation (130) (244)
(7,300) (16,546)
Issue of ordinary shares – 12,150
Net (decrease)/increase in Shareholder’s funds (7,300) (4,396)
Opening Shareholders’ funds (equity) 58,313 62,709
Closing Shareholders’ funds (equity) 51,013 58,313
Opening shareholders funds at 1 January 2002 originally £60,047,000 before a prior year adjustment of
£1,734,000.
Twenty Nine GROUP STATEMENT OF
TOTAL RECOGNISED GAINS AND LOSSES
Year Ended 31 December 2002
2002 2001
Restated
£’000 £’000
Loss for the financial year (7,170) (16,302)
Exchange movements on foreign currency net investments (130) (244)
Total recognised losses relating to the year (7,300) (16,546)
Prior year adjustment (see note 1) (1,734)
Total recognised gains and losses since the last annual report (9,034)
RECONCILIATION OF MOVEMENT IN
SHAREHOLDERS’ FUNDS
Year Ended 31 December 2002 Note 2002 2001 
£’000 £’000
Net cash flow from operating activities 25 5,224 3,018
Returns on investments and servicing of finance
Net interest received (3,325) (2,151)
Dividends paid to preference shareholders – (217)
Dividends paid to equity shareholders by subsidiary (35) (266)
Income from other fixed asset investments 149 232
Net cash outflow from returns on investments and servicing of finance (3,211) (2,402)
Taxation
Cash outflow due to UK Corporation Tax and Australian equivalent (255) –
Capital expenditure and financial investment
Payments to acquire investments – (6,764)
Receipts from sales of fixed asset investments 14,486 –
Payments to acquire tangible fixed assets (3,130) (6,992)
Receipts from sales of tangible fixed assets 21 –
Net cash inflow/(outflow) for capital expenditure and financial investment 11,377 (13,756)
Acquisitions and disposals
Costs of acquiring subsidiary undertakings (625) (26,872)
Net cash balances acquired with subsidiary undertakings – 1,183
Net cash outflow acquisitions and disposals (625) (25,689)
Net cash inflow/(outflow) before financing 12,510 (38,829)
Financing
Net cash (outflow)/inflow from bank loans (14,200) 11,784
Net cash outflow from finance leases (597) (510)
Net inflow from members advances – 10
Net inflow from issue of ordinary shares – 20,143
Net cash (outflow)/inflow from financing (14,797) 31,427
Decrease in cash (2,287) (7,402)
CASH FLOW STATEMENT Thirty
Year Ended 31 December 2002 1. ACCOUNTING POLICIES
Basis of Accounting
The financial statements have been prepared under the historical cost convention and in accordance with
applicable accounting standards. Except as noted below regarding the adoption of FRS 19 all accounting policies
have been consistent throughout the period.
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the Company and all Group
undertakings made up to 31 December 2002.
The consolidated financial statements are accounted for under the acquisition method of accounting. 
The results of companies acquired or disposed of are included in the profit and loss account after or up to the date
that control passes respectively.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent Company
is omitted from the Group financial statements by virtue of section 230 of the Companies Act 1985.
Prior Year Adjustment
The Group has adopted Financial Reporting Standard 19 ‘Deferred taxation’ during 2002. This standard requires
full provision to be made for deferred taxation on most types of timing differences. Adoption has produced a prior
year adjustment, resulting in a reduction in opening reserves at 1 January 2002 of £1.7m and an increase in the
loss for 2002 by £0.8m (2001: £1.2m).
Financial Reporting Standard 18 ‘Accounting policies’ has been adopted in 2002. No material effect on the Group
has occurred owing to this new accounting standard.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful
economic life of that asset as follows:
Freehold Buildings – 50 years
Long Leasehold Property – 50 years
Short Leasehold Property – Over the unexpired term of the lease
Surface finishes – 15 years
Fixtures, Fittings & Equipment – 3-10 years
Motor Vehicles – 4 years
Land is not depreciated.
The Directors carry out regular impairment reviews of the freehold and leasehold buildings in accordance with
Financial Reporting Standard No 11. Provisions for impairments in value are taken to the profit and loss account.
Turnover
Turnover represents membership entrance fees and subscription income receivable in respect of the year together
with sales of leisure and catering services at invoice value excluding value added tax. Membership fees are time
apportioned over the period that they apply.
Thirty One NOTES TO THE FINANCIAL STATEMENTS 
Year Ended 31 December 2002 1. ACCOUNTING POLICIES continued
Goodwill
Purchased goodwill (both positive and negative) arising on consolidation in respect of acquisitions before 28
December 1997, when FRS 10 ‘Goodwill and intangible assets’ was adopted, was written off to reserves in the year
of acquisition. When a subsequent disposal occurs any related goodwill previously written off to reserves is written
back through the profit and loss account as part of the profit or loss on disposal.
Purchased goodwill (representing the excess of the fair value of the consideration given and associated costs over
the fair value of the separable net assets acquired) arising on consolidation in respect of acquisitions since 28
December 1997 is capitalised. Positive goodwill is amortised to nil by equal annual installments over its estimated
useful life, normally 20 years. 
Negative goodwill arising on consolidation in respect of acquisitions since 28 December 1997 is included within
fixed assets and released to the profit and loss account in the periods in which the fair values of the non-monetary
assets purchased on the same acquisition are recovered, whether through depreciation or sale.
On the subsequent disposal or termination of a business acquired since 28 December 1997, the profit or loss on
disposal or termination is calculated after charging (crediting) the unamortised amount of any related goodwill
(negative goodwill). 
The Directors carry out regular impairment reviews in accordance with Financial Reporting Standard 11.
Provisions for impairment in value are taken to the profit and loss account.
Concessions, Licences, Trademarks and Similar Rights
Concessions, licences, trademarks and similar rights are included at cost. The Directors consider these assets to
have an enduring life due to the strength of earnings in the related business and accordingly no regular
amortisation is recorded.
The Directors carry out regular impairment reviews in accordance with FRS 11. Provisions for impairment in value
are taken to the profit and loss account.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow
moving items.
Finance Lease Agreements
Where the Group enters into a lease which entails taking substantially all the risks and rewards of ownership of
an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset
and is depreciated in accordance with the above depreciation policies. Future installments under such leases, net
of finance charges, are included with creditors. Rentals payable are apportioned between the finance element,
which is charged to the profit and loss account, and the capital element which reduces the outstanding obligation
for future installments.
Operating Lease Agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with
the lessor are charged against profits as incurred.
NOTES TO THE FINANCIAL Thirty Two
STATEMENTS continued
Year Ended 31 December 2002 1. ACCOUNTING POLICIES continued
Taxation
The charge for tax is based on the profit and loss account for the year and takes into account tax deferred because
of timing differences between the different treatment of certain items for tax and accounting purposes. Provision
is made for deferred tax in accordance with the requirements of Financial Reporting Standard 19 ‘Deferred
Taxation’ which has been adopted in 2002. Except where required by FRS 19, this standard requires full provision
to be made for taxation in respect of all timing differences that have originated but not reversed by the balance
sheet date. Deferred tax assets arising from unrelieved losses are only recognised to the extent that they are
regarded as recoverable. 
Going Concern
The financial statements have been prepared on the going concern basis.
Investments
Fixed asset investments are carried at cost less provisions for impairment in value.
Current asset investments are stated at the lower of cost and net realisable value.
Foreign Currency
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of
exchange prevailing at that date.
The results of overseas operations are translated at the average rate of exchange during the period and their balance
sheets at the rates ruling at the balance sheet dates. Exchange differences arising on translation of opening net
assets are reported in the statement of total recognised gains and losses. All other exchange differences are included
in the profit and loss account.
Pension Costs
Pension costs relate to defined contribution schemes and are charged to the profit and loss account as incurred.
2. SEGMENTAL ANALYSIS
The turnover, net assets and operating profit are attributable to the principal activities of the Group, and can be
analysed by business segment as follows:
Turnover T urnover Net Assets Net Assets 
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Health & Fitness 28,093 23,164 71,776 65,445
Golf (Discontinued) 6,225 5,921 15,455 15,047
The Winning Line 760 531 40 567
Crown Content 1,940 1,949 1,565 7,101
Central liabilities – – (37,716) (29,743)
Total 37,018 31,565 51,120 58,417
Thirty Three 2. SEGMENTAL ANALYSIS continued
Operating Operating 
profit 2002 profit 2001
£’000 £’000
Before exceptional items:
Health & Fitness 5,972 5,956
Golf (Discontinued) 1,823 2,170
The Winning Line 22 169
Crown Content (252) 893
Central costs (3,244) (2,725)
Total 4,321 6,463
Exceptional items:
Health & Fitness – –
Golf (1,442) (8,450)
The Winning Line (594) (1,148)
Crown Content (5,656) (1,927)
Central costs (2,798) (837)
Total (10,490) (12,362)
After exceptional items:
Health & Fitness 5,972 5,956
Golf 381 (6,280)
The Winning Line (572) (979)
Crown Content (5,908) (1,034)
Central costs (6,042) (3,561)
Total (6,169) (5,899)
An analysis by geographic region is given below:
Turnover T urnover Net Assets Net Assets 
2002 2001 2002 2001
£’000 £’000 £’000 £’000
United Kingdom 35,078 29,616 49,555 51,316
Australia 1,940 1,949 1,565 7,101
Total 37,018 31,565 51,120 58,417
Operating Operating 
profit 2002 profit 2001
£’000 £’000
Before exceptional items
United Kingdom 4,573 5,570
Australia (252) 893
Total 4,321 6,463
NOTES TO THE FINANCIAL Thirty Four
STATEMENTS continued
Year Ended 31 December 2002 2. SEGMENTAL ANALYSIS continued
Operating Operating 
profit 2002 profit 2001
£’000 £’000
Exceptional items
United Kingdom (4,834) (10,435)
Australia (5,656) (1,927)
Total (10,490) (12,362)
After exceptional items
United Kingdom (261) (4,865)
Australia (5,908) (1,034)
Total (6,169) (5,899)
The above turnover does not include the turnover of Batchworth Park Golf Club and South Winchester Golf Club.
These clubs were managed by Group companies and their profits were included as other operating income. In
aggregate their turnover totalled £2,640,000 (2001: £2,622,000).
The breakdown of the discontinued Golf Division is as follows:
Continuing Discontinued Continuing Discontinued
2002 2002 2002 2001 2001 2001
£’000 £’000 £’000 £’000 £’000 £’000
T urnover 30,793 6,225 37,018 25,644 5,921 31,565
Cost of sales (1,919) (1,725) (3,644) (1,502) (1,560) (3,062)
Administrative expenses (35,452) (4,770) (40,222) (23,761) (11,327) (35,088)
Other operating income – 679 679 – 686 686
Operating (loss)/profit (6,578) 409 (6,169) 381 (6,280) (5,899)
3. OPERATING PROFIT / (LOSS)
Operating profit/(loss) is stated after charging/(crediting):
2002 2001
£’000 £’000
Amortisation 800 511
Depreciation – tangible owned fixed assets 2,470 1,470
Depreciation – tangible assets held under finance leases and hire purchase contracts 256 339
Loss on disposal on fixed assets 11,200 24
Exceptional costs (Note 4) 10,490 12,362
Auditors' remuneration
– statutory auditor 136 189
– taxation 52 40
– bid defence/transaction costs 275 160
Thirty Five 4. EXCEPTIONAL ITEMS
Note 2002 2001
£’000 £’000
Impairment of Goodwill and other intangible assets
1
11 6,692 3,075
Impairment of Fixed Assets
2
12 1,000 8,450
Cost of restructuring of continuing operations
3
428 837
Costs of put option re: The Winning Line
4
870 –
Bid defence costs
5
1,500 –
Exceptional operating items 10,490 12,362
Amounts written back to/(off) trade investments
6
(2,893) 7,008
Refinancing costs on early repayment of loans
7
776 –
Total exceptional items 8,373 19,370
1
A review of the goodwill and other intangible items arising on previous years acquisitions has led to an impairment provision being made against
Crown Golf (£443k), Crown Content (£5,656k) and The Winning Line(£593k).
2
Following a review of the Group property portfolio by the Directors an impairment provision has been created against the property of Crown Golf
of £1m.
3
Restructuring Costs: The Company streamlined certain of its ancillary activities and re-positioned its management structure in order to focus on
its core businesses, and includes termination payments made to senior managers and Directors and associated fees arising from these terminations.
4
The sale and purchase agreement completed in April 2001 for the purchase of 70% of The Winning Line included an option for the Group to
purchase the remaining 30% share capital for a minimum price of £870k in April 2003. This option is cancellable at the option of the owners of
these shares only. The underlying shares have no significant value to the Group.
5
Bid defence costs includes all costs incurred by the Group as a consequence of the offer for the Group made by Bennelong in the final quarter of
2002.
6
Shares in Esporta Plc were disposed of in July 2002 for £14.5m. These shares were valued at £11.6m at 31 December 2001 following an
impairment provision of £5.1m. Following the disposal the charge for the impairment was able to be partially reversed by £2.9m. In 2001 an
impairment provision of £1.9m was also booked on the Group’s investment in Clubhaus Plc.
7
Bank facilities of £53m were negotiated in 2002. The total costs incurred in arranging the facilities amounted to £1.2m. The exceptional charge
is the portion of these costs relating to loans prepaid following receipt of the proceeds of the sale of shares in Esporta Plc and the proceeds from
the sale of Crown Golf.
5. PARTICULARS OF EMPLOYEES
The average number of staff employed by the Group during the financial year amounted to:
2002 2001
No. No.
Management 36 91
Administrative 50 42
Operational 1,339 1,221
1,425 1,354
The aggregate payroll costs of the above were:
2002 2001
£’000 £’000
Wages and salaries (including £0.4m of exceptional restructuring costs) 12,863 10,339
Social security costs 947 702
Other pension costs 152 112
13,962 11,153
The above particulars of employees do not include employees of Batchworth Park Golf Club and South Winchester
Golf Club. The aggregate average number of employees of these clubs totalled 71 (2001: 50).
NOTES TO THE FINANCIAL Thirty Six
STATEMENTS continued
Year Ended 31 December 2002 5. PARTICULARS OF EMPLOYEES continued
Detailed information concerning Directors’ emoluments, pensions, shareholdings and options is shown in the
Report on Directors’ Remuneration on page 16.
6. NET INTEREST PAYABLE
2002 2001
£’000 £’000
Interest payable on bank borrowing (including £0.8m of exceptional restructuring costs) 2,988 2,005
Finance charges 81 171
3,069 2,176
Interest receivable (50) (25)
Net interest payable 3,019 2,151
7. TAX ON LOSS ON ORDINARY ACTIVITIES
Taxation has been provided on the basis of estimated rates for the financial year after taking account of tax losses
available from the previous year and provision for deferred taxation as required.
a) Tax on loss on ordinary activities
Restated
2002 2001
£’000 £’000
Current Tax
UK Corporation Tax/Australian business tax 184 225
Total Current Tax (note 7 b)) 184 225
Deferred Tax
Origination and reversal of timing difference (note 7 c) 837 1,185
Tax on loss on ordinary activities 1,021 1,410
b) Factors affecting current tax
The tax assessed on the profit on ordinary activities for the year is lower than the standard rate of corporation in
the UK of 30% (2001: 30%). The differences are reconciled below:
2002 2001
£’000 £’000
Loss on ordinary activities (6,146) (14,826)
Loss on ordinary activities before tax multiplied by the standard rate 
of corporation tax in the UK of 30% (2001 30%) (1,844) (4,448)
Goodwill 2,268 923
Fixed Asset impairment 300 2,535
Amounts (written back to) / written off investments (868) 2,102
Tax losses not recognised for deferred tax 1,490 1,095
Accelerated capital allowances (534) (570)
Tax losses brought forward and used in the current year (316) (483)
The Winning Line tax charge, not able to receive group tax relief 24 4
Non deductible trading expenses (336) (933)
Total current tax (note 7 a) 184 225
Thirty Seven 7. TAX ON LOSS ON ORDINARY ACTIVITIES continued
c. Deferred tax
The deferred tax included in the balance sheet as follows:
2002 2001
£’000 £’000
Shown on the balance sheet as Provisions for liabilities and charges 2,571 1,734
£’000
At 1 January 2002 (as previously stated) –
Prior year adjustment 1,734
At 1 January 2002 (as restated) 1,734
Deferred tax credit/(charge) in profit and loss account 837
At 31 December 2002 2,571
d. Factors that may affect future tax charges
The Group anticipates that the effective future tax rate will not alter materially in future years.
8. LOSS ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANY
The loss dealt with in the accounts of the parent Company was £15,471,000 (2001 restated: loss £14,859,000).
As permitted by section 230 of the Companies Act 1985 no separate profit and loss account is prepared in respect
of the parent company.
9. DIVIDENDS
No dividends have been proposed in respect of 2002 or the previous period.
10.LOSS PER SHARE
Basic and diluted loss per ordinary share
2002 2001
Restated
Loss per ordinary share (pence) (2.5) (5.9)
Diluted loss per ordinary share (pence) (2.5) (5.9)
Earnings per share have been calculated on the net basis on the loss for the year, after taxation, of £7,170,000
(2001 restated: £16,302,000 loss) using the weighted average number of ordinary shares in issue of 290,768,000
(2001: 278,349,326).
Diluted earnings per share have been calculated using the weighted average number of ordinary shares in issue,
diluted for the effect of share options. The diluted weighted average number of ordinary shares is 290,768,000
(2001: 278,593,408).
NOTES TO THE FINANCIAL Thirty Eight
STATEMENTS continued
Year Ended 31 December 2002 10.LOSS PER SHARE continued
Basic and diluted earnings per share before exceptional items and amounts written off investments
2002 2001
Restated
Earnings per ordinary share (pence) 0.4 1.1
Diluted earnings per ordinary share (pence) 0.4 1.1
The profit for the year before exceptional items used in calculating the above earnings per share has been arrived
at as follows:
2002 2001
£’000 £’000
Loss for the year (7,170) (16,302)
Add: exceptional items (per note 4) 8,373 19,369
Tax impact of exceptional items (per note 7) – –
Profit for the year before exceptional items 1,203 3,067
11.INTANGIBLE FIXED ASSETS
Group
Concessions, Goodwill Negative Total
licences and goodwill
similar rights
£’000 £’000 £’000 £’000
Cost
At 1 January 2002 4,931 15,066 (1,916) 18,081
Disposal – (178) – (178)
At 31 December 2002 4,931 14,888 (1,916) 17,903
Amortisation
At 1 January 2002 – 3,639 – 3,639
Charge for the year – 839 (39) 800
On disposals ––––
Impairment provision 3,630 3,062 – 6,692
At 31 December 2002 3,630 7,540 (39) 11,131
Net Book Value
At 31 December 2002 1,301 7,348 (1,877) 6,772
At 31 December 2001 4,931 11,427 (1,916) 14,442
The review of the value of goodwill arising on previous acquisitions has resulted in the impairment provision
included above. 
The goodwill disposed of related to the Dr Tickell business originally acquired in June 2001 by Crown Content
which was disposed of in July 2002.
The company has no intangible assets.
Thirty Nine 12. TANGIBLE FIXED ASSETS
Group
Freehold Long Short Fixtures, Total
Property Leasehold Leasehold Fittings, 
Property Property Equipment 
& Motor 
Vehicles
£’000 £’000 £’000 £’000 £’000
Cost
At 1 January 2002 55,254 26,428 8,357 13,229 103,268
Additions 1,658 490 399 1,068 3,615
Disposals – – – (50) (50)
At 31 December 2002 56,912 26,918 8,756 14,247 106,833
Depreciation
At 1 January 2002 8,756 606 59 6,391 15,812
Charge for the year 446 288 340 1,652 2,726
Impairment provisions 1,000 – – – 1,000
On disposals – – – (29) (29)
At 31 December 2002 10,202 894 399 8,014 19,509
At 31 December 2002 46,710 26,024 8,357 6,233 87,324
At 31 December 2001 46,498 25,822 8,298 6,838 87,456
Finance lease and similar agreements
Included within the net book value of fixtures, fittings, equipment and motor vehicles is £1,183,713 (2001:
£1,384,034) relating to assets held under finance lease agreements. The depreciation charged to the accounts in
the period in respect of such assets amounted to £255,965 (2001: £338,726).
Company
Freehold Fixtures, Motor Total
Property Fittings & Vehicles
Equipment 
£’000 £’000 £’000 £’000
Cost
At 1 January 2002 1,650 339 18 2,007
Additions 26 77 – 103
At 31 December 2002 1,676 416 18 2,110
Depreciation
At 1 January 2002 344 68 4 416
Charge for the year 7 98 3 108
At 31 December 2002 351 166 7 524
At 31 December 2002 1,325 250 11 1,586
At 31 December 2001 1,306 271 14 1,591
NOTES TO THE FINANCIAL Forty
STATEMENTS continued 
Year Ended 31 December 2002 12. TANGIBLE FIXED ASSETS continued
Finance lease and similar agreements
Included within the net book value of fixtures, fittings, equipment and motor vehicles is £71,572 (2001: £58,767)
relating to assets held under finance lease agreements. The depreciation charged to the accounts in the period in
respect of such assets amounted to £14,781 (2001: £12,559).
13.FIXED ASSET INVESTMENTS
Group
AIM Listed Listed Total
Investment Investment
£’000 £’000 £’000
Cost
At 1 January 2002 1,858 16,739 18,597
Disposals – (16,739) (16,739)
At 31 December 2002 1,858 – 1,858
Provision for impairment
At 1 January 2002 1,858 5,150 7,008
Disposals – (5,150) (5,150)
At 31 December 2002 1,858 – 1,858
Net Book Value at 31 December 2002 – – –
Net Book Value at 31 December 2001 – 11,589 11,589
Forty One 13.FIXED ASSET INVESTMENTS continued
AIM listed investment
The AIM listed investment represents 4,100,000 shares in Clubhaus Plc.
Company
AIM Listed Listed Subsidiary Total
Investment Investment Undertakings
£’000 £’000 £’000 £’000
Cost
At 1 January 2002 1,858 16,739 64,109 82,706
Disposals – (16,739) – (16,739)
At 31 December 2002 1,858 – 64,109 65,967
Provisions for diminution in value
At 1 January 2002 1,858 5,150 16,943 23,951
Disposals – (5,150) – (5,150)
Movement – – 5,520 5,520
At 31 December 2002 1,858 – 22,463 24,321
Net Book Value
At 31 December 2002 – – 41,646 41,646
At 31 December 2001 – 11,589 47,166 58,755
Listed Investments
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Investments at market value include:
Investments listed on a recognised stock exchange – 11,589 – 11,589
Aggregate market value of listed investments at 31 December 2001 – 11,651 – 11,651
The market value of the fixed asset listed investments held by the Group at close of business on 15 April 2003 was
zero (30 April 2002 - £12,665,053).
NOTES TO THE FINANCIAL Forty Two 
STATEMENTS continued
Year Ended 31 December 2002 13.FIXED ASSET INVESTMENTS continued
Proportion of
Subsidiary Country of voting rights Nature of 
undertaking incorporation Holding and shares held business
Axis (Maidstone) Limited ## England Ordinary shares 100% Health and fitness
club operation
Axis (Rugby) Limited ## England Ordinary shares 100% Health and fitness 
club operation
Axis Health & Fitness Limited England Ordinary shares 100% Health and fitness 
club operation
Batchworth Park Golf Club Limited England Ordinary shares 100% Golf club 
(formerly Matchmarvel Ltd) management 
Boomsign Limited*** England Ordinary shares 100% Health and fitness 
club operation
Broke Hill Golf Club Limited England Ordinary shares 100% Provision of golf 
and leisure facilities
Crown Content Pty Limited Australia Ordinary shares 100% Sports based publishing
Dragons Health Clubs Plc England Ordinary shares 100% Health and fitness 
club operation
E P Golf Limited England Ordinary shares 100% Provisions of golf 
and leisure facilities
GolfPartners International Limited England Ordinary shares 100% Provision of golf 
and leisure facilities
London and Chancery England Ordinary shares 100% Land and property 
Properties Limited investment
South Winchester Golf Club England Ordinary shares 100% Golf club
(1993) Limited management
Studio Fitness Enterprises Limited England Ordinary shares 100% Health and fitness club 
facilities management
The Winning Line England Ordinary shares 70% Horse racing and
(Sport & Leisure) Limited sporting information
Trainstation Limited*** England Ordinary shares 100% Health and fitness 
club operation
UK Golf Limited England Ordinary shares 100% Provision of golf 
and leisure facilities
Vale Royal Abbey Golf Club Limited England Ordinary shares 100% Provision of golf 
and leisure facilities
All subsidiary undertakings have been included in the consolidated financial statements, as required by Sch 5
Companies Act 1985.
*** These companies are subsidiaries of Dragons Health Clubs Plc.
## These companies are subsidiaries of Axis Health and Fitness Limited
Forty Three 14.STOCKS
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Goods for resale 675 877 28 52
15.DEBTORS
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Trade debtors 990 1,302 3 –
Amounts owed by group undertakings – – 39,323 14,844
Other debtors 467 1,286 287 88
Prepayments and accrued income 1,241 573 464 86
2,698 3,161 40,077 15,018
16.CURRENT ASSET INVESTMENTS
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Subsidiary undertaking’s investment in Crown Sports Plc 72 72 – –
Golf Partners International Limited acquired ordinary shares in the Company pursuant to an agreement dated 
8 March 1995. The shares were acquired prior to Golf Partners International Limited becoming a subsidiary and
this company has no right to exercise the voting rights attached thereto. It is not intended that this investment of
287,994 (2001: 287,994) ordinary shares is held for the long term.
The market value and the Stock Exchange value of the subsidiary undertaking's investment in Crown Sports Plc
at the year end was £20,160 (2001: £49,679). The Directors are satisfied that any diminution in value of this
investment is not material to the Group.
NOTES TO THE FINANCIAL Forty Four
STATEMENTS continued
Year Ended 31 December 2002 17.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Bank loans, loan notes and overdrafts (See note 18) 3,396 22,320 4,197 14,902
Trade creditors 1,720 1,670 561 34
Other creditors including taxation and social security
Social security and other taxes 687 827 5 –
Corporation tax 227 256 – –
HP and finance leases 439 572 30 24
Dividends payable ––––
Other creditors 1,398 1,789 884 55
Accruals 2,404 2,377 1,079 667
Deferred income 1,634 1,601 67 81
Members’ Advances 769 497 – –
Deferred consideration 50 675 50 –
12,724 32,584 6,873 15,763
Members’ advances
The members’ advances represents amounts subscribed by Founder Members in respect of their interest in life
membership. Amounts received are carried in deferred income and released to the profit and loss account as the
liability is extinguished.
Deferred consideration
Deferred consideration £50,000 relates to the acquisition of Trainstation Limited.
18.CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Bank loans 31,230 26,506 31,226 –
Other creditors:
HP and finance leases 366 344 37 21
Members’ advances – 769 – –
31,596 27,619 31,263 21
Bank loans
The bank loans and overdrafts are with the Groups bankers, HSBC Bank Plc and Barclays Bank Plc, and are secured
by legal charges and debentures over the freehold and leasehold properties and other assets and investments of the
business, together with cross guarantees of companies with the Group. 
Forty Five 18.CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR continued
Loan notes
The Company has in issue unsecured loan notes to the value of £1,145,665 which are guaranteed by Barclays Bank
Plc. These have been included within bank loans due within one year. The loan notes comprise: -
3.25% Guaranteed Unsecured Loan Notes 2006, with a nominal value of £159,665. Interest is payable twice yearly
in arrears on 30 April and 31 October. Noteholders are entitled to repayment on any interest payment date falling
on or after 30 April 2002. Any outstanding notes are to be repaid by the Company on 30 April 2006.
4% Guaranteed Unsecured Loan Notes 2006 with a nominal value of £300,000 constituted by an instrument dated
11 April 2001. Interest is payable twice yearly in arrears on 30 April and 31 October. Noteholders are entitled to
repayment on any interest payment date falling six months or more after the date of the loan instrument under
which such notes were issued. Any outstanding notes are to be repaid by the Company on 30 April 2006.
Guaranteed Floating Rate Loan Notes 2006 with a nominal value of £566,000 and Guaranteed Floating Rate Loan
Notes 2010 with a nominal value of £120,000. Interest is payable at LIBOR less 0.25%. Interest is payable twice
yearly in arrears on 30 April and 31 October. Noteholders are entitled to repayment at any time after 15 July 2002.
Any outstanding notes are to be repaid by the Company on 30 April 2006 and 30 April 2010 respectively.
Analysis of loans repayments
Bank loans Loan notes
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Within one year 2,250 3,017 1,146 6,842
Between one and two years 3,250 3,380 – –
Between two and five years 11,875 11,066 – –
In five years or more 16,105 12,060 – –
33,480 29,523 1,146 6,842
Hire purchase and finance leases
The hire purchase contracts and finance leases are secured on the assets to which they relate.
19.FINANCIAL INSTRUMENTS
The Group’s principal financial instruments comprise bank term loans, bank overdraft facilities and cash. The main
purpose of these is to finance the Group operations. Currently all the Group activities except those of Crown
Content Pty Limited are conducted in sterling and as such a modest currency risk exists and is confined to
movements between sterling and the Australian dollar only.
At the year end, foreign currency borrowings amounted to £4.5m, all in Australian dollars, which provides a
balance sheet hedge against the value of the corresponding investment. 
The Group additionally has other financial instruments such as trade debtors and trade creditors which arise
directly from normal trading and as such the Company excludes these in the disclosure below as permitted by
Financial Reporting Standard 13.
Interest rate risks
Under the terms of the loan facilities of the Group taken out during 2002, the Group is exposed to interest rate
risks from any movement in the LIBOR rate.
Interest rate risk is managed through interest rate derivatives which cap the group exposure to interest rate
increases. The Group purchased an interest rate swop financial instrument in May 2002 that protects £24m of the
Group’s borrowings against upward movements in the LIBOR rate above 6.25% but exposes the Group to charges
should the LIBOR rate fall below the floor specified in the agreement of 3.95%. 
NOTES TO THE FINANCIAL Forty Six
STATEMENTS continued
Year Ended 31 December 2002 As at 31 December 2002 this financial instrument had a negative market value of £564,000, which represents the
potential cost to the Group should the instrument have been cancelled on that date. Following the £13.9m
repayment of debt from the proceeds of the sale of the golf business the Group’s debt level is now less than that
protected by the financial instrument. Accordingly, the cost of cancelling the amount of the financial instrument
now surplus to the Group’s needs (£104,000) has been charged against profit in 2002. 
To minimise interest costs on bank overdrafts and cash balances a Group netting agreement is in operation.
The fair value of the loan notes is not materially different to the book value of £1,145,665. 
Borrowings
2002 2001
£’000 £’000
Term loans (See note 18) 34,626 29,523
Bank overdrafts – 19,303
Obligations under finance leases and hire purchase contracts 804 916
35,430 49,742
Liquidity risk
The Group is cash positive in its operating activities and is expected to continue to be for the foreseeable future.
20.PROVISIONS FOR LIABILITIES AND CHARGES
Group
£’000
Deferred taxation at 1 January 2002 –
Prior year adjustment 1,734
Charge for 2002 837
Deferred taxation as at 31 December 2002 2,571
Accelerated capital allowances 3,339
Losses to be carried forward (768)
2,571
21.COMMITMENTS UNDER LEASES AND HIRE PURCHASE AND FINANCE 
LEASE AGREEMENTS
Future commitments under hire purchase and finance lease agreements are as follows:
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Amounts payable within 1 year 439 572 31 25
Amounts payable between two to five years 365 344 35 20
804 916 66 45
Forty Seven 21.COMMITMENTS UNDER LEASES AND HIRE PURCHASE AND FINANCE 
LEASE AGREEMENTS continued
Annual commitments under non-cancellable operating leases are as follows:
Group
2002 2001
Land and Other Land and Other
buildings buildings
£’000 £’000 £’000 £’000
Leases expiring:
within one year –52 78 13
between two to five years 88 95 ––
over five years 293 – 321 79
381 147 399 92
Company
There is one annual commitment under non-cancellable operating leases within the Company of £960 expiring
between two to five years.
22.RELATED PARTY TRANSACTIONS
The Company is quoted on the United Kingdom Stock Exchange. There was no ultimate controlling party for the
Group at the year end.
South Winchester Golf Club (1993) Limited has a management agreement with South Winchester Golf Club
(1993) of which A H Tait and H W Dixon are trustees. Under this management agreement South Winchester Golf
Club (1993) Limited received rental income of £75,000 (2001: £75,000) and management income of £252,668
(2001: £215,938).
Batchworth Park Golf Club Limited (formerly Matchmarvel Limited) has a management agreement with
Batchworth Park Golf Club of which A H Tait and H W Dixon are trustees. Under this management agreement
Batchworth Park Golf Club Limited received management income of £351,004 (2001: £417,121).
As at 31 December 2001 the Group was owed £1,009,388 (2001: £790,433) by Batchworth Park Golf Club and
owed £966,663 (2001: £978,251) to South Winchester Golf Club (1993), these balances are included in other
debtors and creditors respectively.
The above transactions were under normal commercial terms.
Fees of £50,000 were paid for services provided towards the bid defence to LMS, a significant shareholder in the
group.
Expenses of £33,526 were reimbursed to Bennelong, a significant shareholder in the group, for the provision of
services assisting the management of Crown Content.
In accordance with the exemption stated in Financial Reporting Standard No.8 no details are shown of related
party transactions which are eliminated on consolidation.
23.SHARE CAPITAL
Authorised share capital:
2002 2001
£’000 £’000
410,000,000 Ordinary shares of £0.05 each (2001: 410,000,000) 20,500 20,500
NOTES TO THE FINANCIAL Forty Eight
STATEMENTS continued
Year Ended 31 December 2002 23.SHARE CAPITAL continued
Allotted, called up and fully paid:
2002 2001
No. £’000 No. £’000
Ordinary shares 290,768,005 14,538 290,768,005 14,538
All of the above share issues have been reflected in these financial statements.
Share Options
The number of shares for which employees, including Directors, hold options are as follows:
Period Price 2002 2001 
Number Number
Between 1 January 2001 and 9 December 2008 10p 235,714 235,714
Between 1 January 2001 and 9 December 2008 20p 10,000 15,000
Between 1 May 2001 and 1 May 2008 20p – 150,000
Between 1 January 2002 and 9 December 2009 20p 10,000 15,000
34.5p 27,500 27,500
Between 30 April 2002 and 30 April 2004
1
20p 152,500 152,500
Between 1 January 2003 and 1 January 2010 31p 500,000 500,000
From the date of approval of the financial statements
2 
for 2002 until two years thereafter 25p 55,000 55,000
Between 29 December 2003 and 28t December 2010 30p 1,000,000 1,000,000
Between 5 January 2004 and 4 January 2011 30p – –
Between 26 January 2004 and 25 January 2011 30p 750,000 1,250,000
Between 26 January 2001 and 31 July 2002 30p – 100,000
Between 14 May 2004 and 13 May 2011 30p 500,000 500,000
Between 28 June 2004 and 27 June 2011 35p – 145,000
Between 1 March 2001 and 1 March 2004 30p – 100,000
Between 14 May 2004 and 13 May 2011 30p – 2,000,000
Between 14 November 2004 and 13 November 2011 16p 300,000 300,000
Between 18 June 2004 and 17 June 2011 30p 2,052,105 2,687,751
Between 20 July 2004 and 19 July 2011 30p 184,500 233,000
Between 20 July 2004 and 19 July 2011 30p 279,405 299,630
Between 20 December 2004 and 19 December 2011 15p 755,000 885,000
Between 23 April 2001 and 23 April 2004 40p 2,500,000 2,500,000
Between 30 June 2003 and 31 May 2004 40p – 250,000
Between 30 April 2005 and 29 April 2012 12.5p 1,800,000 –
11,111,724 13,634,095
1
These options are subject to the achievement of certain performance criteria. The number of options where the performance criteria have already
been met is 12,500 at 34.5p, and 152,500 at 20p.
2
These options are exercisable between the date of approval of the Company’s financial statements for the year ending 31 December 2002 and the
second anniversary thereof and are subject to the achievement of certain performance criteria. The number of options where the performance
criteria have already been met is 25,000.
Forty Nine
{ 23.SHARE CAPITAL continued
Warrants
The number of shares for which there are outstanding warrants are as follows:
Period
Price 2002 2001
Number Number
From the date of publication of the financial
1
25p 2,064,684
1
2,064,684
statements for 2002 until 30 September 2003 36p 3,923,747 3,923,747
5,988,431 5,988,431
1
These warrants are exercisable between the date of publication of the Company’s financial statements for the year ending 31 December 2002 and midnight on 
30 September 2003 and are subject to certain performance criteria, relating to growth in earnings per share over the two financial years ended 31 December 2002.
24.RESERVES
Group
Share Capital Profit
premium redemption and loss
account reserve Account
£’000 £’000 £’000
At start of the year (as previously stated) 59,826 1,250 (15,567)
Prior year adjustment – – (1,734)
59,826 1,250 (17,301)
Loss for the year – – (7,170)
Loss on foreign currency translation – – (130)
At end of the year 59,826 1,250 (24,601)
Company 
Share Capital Profit
premium redemption and loss
account reserve Account
£’000 £’000 £’000
At start of the year 59,826 1,250 (14,911)
Prior year adjustment – – (26)
59,826 1,250 (14,937)
Loss for the year – – (15,471)
Loss on foreign currency translation – – –
At end of the year 59,826 1,250 (30,408)
The profit and loss account includes cumulative goodwill of £3,722,000 (2001: £3,722,000) previously written
off directly to reserves which arose on the acquisition of subsidiaries.
NOTES TO THE FINANCIAL Fifty
STATEMENTS continued
Year Ended 31 December 2002 25.RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING 
ACTIVITIES
2002 2001
£’000 £’000
Operating (loss)/profit (6,169) (5,899)
Goodwill – Amortisation 800 511
Goodwill & intangible assets – Impairment 7,562 3,075
Adjustment on valuation –Golf clubs – 8,450
Depreciation 2,726 1,808
Impairment fixed asset book value 1,000 –
Loss on disposal of fixed assets – 24
Decrease in current asset investment – 2
(Increase)/Decrease in stocks 203 (232)
(Increase) in debtors 914 (757)
(Decrease)/Increase in creditors (1,749) (3,964)
Unrealised exchange loss (63) –
Net cash inflow from operating activities 5,224 3,018
26.RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2002 2001
£’000 £’000
Decrease in cash in the year (2,287) (7,402)
Net cash inflow from bank loans 14,200 (11,784)
Net cash outflow/(inflow) in respect of finance leases 597 510
Net cash (inflow)/outflow from members advances – (10)
Net debt on acquisition – (12,811)
Change in net debt resulting from cash flows 12,510 (31,497)
Finance leases undertaken during the year (485) –
Members’ advances 497 820
Movement in net debt in the year 12,522 (30,677)
Net debt at 1 January 2002 (48,251) (17,574)
Net debt at 31 December 2002 (35,729) (48,251)
Fifty One 27.ANALYSIS OF CHANGES IN NET DEBT
At 1 Jan Cash Non–cash At 31 Dec
2002 flows changes 2002
£’000 £’000 £’000 £’000
Net cash:
Cash in hand and at bank 2,757 (2,287) – 470
Debt:
Members advances (1,266) – 497 (769)
Bank loans (48,826) 14,200 – (34,626)
Finance leases (916) 597 (485) (804)
Net debt (48,251) 12,510 12 (35,729)
28.CAPITAL COMMITMENTS
Group
2002 2001
£’000 £’000
Capital expenditure contracted for but not provided for in the financial statements 250 898
29.POST BALANCE SHEET EVENTS
The Crown Golf business was sold on 8 January 2003 for £15.4m to Bennelong UK Ltd. This sale was approved
by the shareholders at an Extraordinary General Meeting held on 8 January 2003. The net proceeds of the sale
after paying bid defence costs were used to repay £13.9m of bank borrowings.
NOTES TO THE FINANCIAL Fifty Two 
STATEMENTS continued
Year Ended 31 December 2002 Fifty Three CORPORATE INFORMATION
THE BOARD OF DIRECTORS
R F Pierce Chairman
M Grealey
N J Habgood
M Kelly
EXECUTIVE COMMITTEE
M Grealey Chairman
D Jarvis
D E Courteen
BOARD AUDIT COMMITTEE
R F Pierce Chairman
N J Habgood
M Kelly
BOARD REMUNERATION COMMITTEE
R F Pierce Chairman
N J Habgood
M Kelly
COMPANY SECRETARY
Cargil Management Services Ltd
REGISTERED OFFICE
33 Imperial Way
Purley Way
Croydon
Surrey
CR0 4RR
Tel: 020 8662 4900
Fax: 020 8662 4910
Email: co.sec@crownsportsplc.com
REGISTERED NUMBER
2476401
AUDITORS
KPMG Audit Plc
Chartered Accountants
& Registered Auditor
NOMINATED ADVISERS AND BROKERS
Collins Stewart
SOLICITORS
Ashurst Morris Crisp
BANKERS
Barclays Bank Plc
HSBC Bank Plc
28 MAY
Annual General Meeting
30 JUNE 
Half Year End
SEPTEMBER
Interim Results Announcement
31 DECEMBER
Year End
MARCH 2004
Preliminary Results Announcement
2003 FINANCIAL CALENDAR LOCATIONS Fifty Four
DRAGONS HEALTH CLUBS
1 Bedford Club
81-83 and 85 Kimbolton
Road, Bedford
Bedfordshire MK41 9DL 
01234 354 363
2 Brentwood Club
Chindits Lane
Warley, Brentwood 
Essex CM14 5LF
01277 202 088
3 Brooklands Club
Whitehall Road
Brooklands Sale
Cheshire M33 3NL
0161 972 8999
4 Burnham Club
Buckingham Avenue
Trading Estate, Slough
Berkshire SL1 4JB
01753 553 888
5 Chester Club
Wrexham Road
Chester
Cheshire CH4 7QP
01244 683 999
6 Derby Club
Carrington Street, 
Castle Ward
Derby DE1 2ND
01332 381 451
7 Epsom Club
27 Ruxley Lane, Ewell
Surrey KT19 0JB
020 8393 6011
8 Gatwick Club
Copthorne Road, Copthorne
Crawley West Sussex
RH10 3PG 
01342 715 022
9 Guildford Club
Epsom Road, Merrow
Guildford GU4 7AA
01483 458 811
10 Hove Club
St. Heliers Avenue, Hove
East Sussex BN3 5RE
01273 724 211
11 Leamington Spa Club
46-48 Bedford Street,
Leamington Spa
Warwickshire CV32 5DT
01926 883 679
12 Leeds Club
Haworth Lane, Yeadon
Leeds LS19 7EN
0113 239 1155
13 Lincoln Club
Witham Park House
Witham Park
Waterside South
Lincoln LN5 7JP
01522 568 755
14 Maidstone Club
Mill Meadow
St. Peter Street, Maidstone
Kent ME16 0SX
01622 681 987
15 Milton Keynes Club
Brickhill Street, Willen Lake
Milton Keynes
MK15 0DS 
01908 295 699
16 Muswell Hill Club
Hillfield Park, Muswell Hill
London N10 3PJ
020 8444 8212
17 Northwood Club
Chestnut Avenue
Northwood
Middlesex HA6 1HR
01923 840 214
18 Orpington Club
Sandy Lane, St Pauls Cray
Orpington Kent BR5 3HY
01689 874 884
19 Purley Club
33 Imperial Way, Purley Way
Croydon Surrey CR0 4RR
020 8686 8811
20 Rugby Club
Webb Ellis Road
Rugby
Warwickshire CV22 7AU
01788 540 523
21 Southport Club
Fairways, North Promenade
Southport
Merseyside PR8 1RY
01704 532 999
22 Western Avenue Club
Rowdell Road, Northolt
Middlesex UB5 6AG
020 8841 5611
FITNESS EXPRESS
1 BT Body Talk Gym
Aquarius Building
P .P .G 34, Adastral Park
Martlesham Heath Ipswich
Suffolk IP5 3RE
01473 631223
2 Ardsley House Hotel 
Doncaster Road, Barnsley
South Yorkshire
S71 5EH
01226 329010
3 Barnsdale Hall Hotel
Exton Nr Oakham
Rutland
LE15 8AB
01572 771314
4 Bentley Hotel 
Newark Road
South Hykeham
Lincoln
LN6 9NH
01522 823200  Fifty Five
5 Broadland Holiday Village
Marsh Road, Oulton Broad
Lowestoft Suffolk
NR33 9JY
01502 517452
6 Forest Pines
Ermine Street, Broughton
Nr Brigg, Lincolnshire
DN20 0AQ
01652 651538
7 Kelling Heath Health Club
Weybourne, Sheringham
Norfolk, NR25 7HW
01263 589919
8 Knights Hill Hotel
South Wootton, Kings Lynn
Norfolk PE30 3HQ
01553 670991
9 Legal and General 
St Monica's Road, Kingswood 
Tadworth, Surrey
KT20 6EU 
01737 376003
10 Park Farm Hotel
Hethersett
Norwich
Norfolk
NR9 3DL
01603 813604
11 Swallow Hotel Nelson 
Prince of Wales Road
Norwich Norfolk
NR1 1DX
01603 214440
12 Ufford Park Hotel
Yarmouth Road
Ufford, Woodbridge
Suffolk IP12 1QW
01394 386449
13 Momentum
Wilmslow Park
211 Hathersage Road
Manchester
M13 0JQ
0161 2489066
MILLENNIUM AND
COPTHORNE 
LEISURE CLUBS
14 Copthorne Hotel Birmingham
Paradise Circus
Birmingham
B3 3HJ
0121 2002727
15 Copthorne Hotel Cardiff
Caerdydd
Copthorne Way
Culverhouse Cross
Cardiff CF5 6DH
0292 02943160
16 Copthorne Hotel Effingham
Park Gatwick
Copthorne, Nr Gatwick
West Sussex RH10 3EU
01342 712138
17 Copthorne Hotel 
Merry Hill Dudley
The Waterfront, Level Street
Brierley Hill, Dudley
DY5 1UR
01384 844601
18 Copthorne Hotel Newcastle
The Close
Quayside
Newcastle Upon T yne
NE1 3RT
0191 2220333
19 Copthorne Hotel Plymouth
Armada Way
Plymouth
PL1 1AR
01752 631250
20 Copthorne Hotel Slough
Windsor
Cippenham Lane, Slough
Windsor, SL1 2YE
01753 607344
21 Millennium Madejski Hotel -
Reading
Madejski Stadium
Junction 11, M4
Reading, RG2 0FL
0118 9253844
OVERSEAS LEISURE CLUBS 
22 Copthorne Hotel Hannover
Wurzburger Strasse 21
Hannover-Laatzen
Germany D-30880
+49 (511) 9836 667
23 Copthorne Hotel Coquelles
Calais
Avenue Charles de Gaulle
Coquelles Calais
France 62231
+33 (0) 21 46 60 60
24 Millennium Abu Dhabi
Kalifa Street
PO Box 44486
Abu Dhabi
UAE
+971 (0) 2 626 2700
25 Millennium Hotel Agadir
BP 266
Cite Founty P4
Baie de Palmiers
Commune de Bensergao
Agadir 80007
Morocco
+212 (0) 48 820 088
26 Millennium Hotel Paris
Charles De Gaulle
2 Allee du Verger
Roissy 1 Paris Charles de
Gaulle
France 95700
+33 (0) 1 34 29 33 33
27 Millennium Hotel Sharjah
Corniche Road
PO Box 3930
Sharjah
UAE
+971 6 556 6666
Designed and produced by Coulton Design Consultancy, London CROWN SPORTS PLC
33 Imperial Way
Purley Way, Croydon
Surrey, CR0 4RR
Tel: 020 8662 4900
Fax: 020 8662 4910
Email: co.sec@crownsportsplc.com
www.crownsportsplc.com