ANNUAL REPORT AND ACCOUNTS 2003 CONTENTS
Highlights and Summary 1
Chairman’s Statement 2
Chief Executive’s Review 4
Operating and Financial Review 6
Board of Directors 9
Directors’ Report 11
Remuneration Report 13
Corporate Governance 16
Statement of Directors’ Responsibilities 20
Independent Auditors' Report to the members 21
Group Profit and Loss Account 23
Group Balance Sheet 24
Company Balance Sheet 25
Group Statement of Total Recognised Gains and Losses 26
Reconciliation of Movements in Shareholders’ Funds 26
Group Cash Flow Statement 27
Notes on the Financial Statements 28
Corporate Information 52
Club Locations 53 • 32% improvement in continuing operations operating profit excluding exceptional 
items and goodwill amortisation £3.7m (2002: £2.8m)
• An improvement in continuing operations operating profit (post exceptional items)
£3.3m (2002: loss of £0.2m)
• Net borrowing reduced to £18.0m at year end (Dec 2002: £35.7m)
• Gearing reduced to 37% at year end (Dec 2002: 70%)
• Following the sale of Leamington Spa club and Fitness Express in Q1 2004 gearing
reduced to 31%
• Dragons operating profit (pre goodwill amortisation) £6.0m (2002: £6.0m)
• 8% improvement in Dragons operating margin (pre goodwill amortisation) 
• Resumption of membership growth in Dragons clubs
• 29% improvement in retention rates in Dragons
• Group turnover £26.3m (2002: £37m)
• Group operating profit (pre exceptional items) £3.0m (2002: £4.3m)
• Exceptional losses £3.0m (2002: £8.4m)
• Group operating profit (post exceptional items) £nil (2002: £6.2m loss)
• Pre tax losses £2.0m (2002: £6.1m loss)
One OPERATIONAL HIGHLIGHTS
Year ended 31 December 2003
RESULTS CHAIRMAN’S STATEMENT Two
"2003 has seen a significant change in the
structure and financial health of the company"
At the end of the 2002 financial year Crown Sports
consisted of 22 Dragons Health Clubs, 27 Fitness
Express management contracts, an Australian
publishing business, 8 golf clubs, and a horse betting
business. We had reported Group operating losses of
over £6.0m and net debt of £35.7m. 
A year later I am able to report a significant change in
the structure and financial health of the business.
During 2003 Crown Sports took significant strides
forward and is now an operationally stronger business
with a clear focus on Health and Fitness, a market in
which we see opportunities for future growth. For the
year to 31 December 2003, the Group achieved a small
operating profit despite £3.0m of exceptional costs,
and most significantly reduced debt by around 50% to
£18.0m.
Despite continuing tough conditions I am able to
report a solid year for the Dragons Health Clubs
business which is our continuing business going
forward. Turnover from these continuing operations
fell to £22.6m (2002: £24.6m) mainly due to the
ongoing pressure on joining fees and competitive
marketing offers. Due to a reduction in central
overheads and good club cost control, operating
profits from the continuing businesses, before
exceptional items and goodwill, improved by 32% to
£3.7m (2002: £2.8m). Exceptional items relating
principally to the sale of the disposed businesses
totalled £3.0m and resulted in the Group reporting
pre-tax losses of £2.0m (2002: loss £6.1m). Earnings
per share before exceptional items reduced slightly to
0.3p (2002: 0.4p).
During the year we completed the sale of Crown Golf
to Bennelong for £15.4m in cash, disposed of The
Winning Line to Last Race Ltd for £0.07m and sold
Crown Content, the Australian publishing business 
to Sportsbrand Media Group for an initial
consideration of £1.0m. Since the year end we have
also sold our health club in Leamington Spa for £1.3m
representing 16 times earnings before interest,
taxation, depreciation and amortisation. On 30 March
2004 we also sold the Fitness Express business for
£1.15m.
During 2003 we also commenced the process of
making two important changes to the structure of our
business that we hope to implement in 2004.
First, a resolution will be put to shareholders at the
AGM in respect of the re-organisation of capital which
will eliminate the deficit on the profit and loss account.
If this is successfully implemented we will be in a
position where we can, if we choose to do so
commence dividend payments in the future.
Secondly, at the Interim results in September 2003 I
indicated that we hoped to move to AIM by the end of
the financial year. The administrative process has
proceeded slower than anticipated, however we are
confident that this will be concluded within the next
few months. 
OUTLOOK
Last year I communicated to shareholders that we had
a clear plan for 2003 and I can confirm that the
strategic and operational objectives highlighted were
met. The transitional year for Crown Sports is behind
us and we can now concentrate fully on growing the
core Dragons business.  Three
For the future we remain well placed in the industry
and the market in which we operate due to:
• consistent profit delivery and cash generation from
our core business;
• a level of net debt which at year end had reduced
down to £18.0m representing a lower gearing of
37% (following the disposals of the Leamington
Spa club and Fitness Express in Q1 2004, gearing
has reduced further to 31%);
• a property portfolio that is underpinned by 10
freehold and 7 long leasehold properties which
provides a valuable platform of tangible assets and
low operating costs.
The board of Crown Sports Plc remain committed to
our belief that the health and fitness market has good
long term prospects and that our focus on improving
our operations, delivering profit growth and reducing
debt will improve shareholder value. 2004 has started
well with positive trends in new joiners and
membership growth and providing that market
conditions do not deteriorate we should continue to
progress.
Finally, once again I would like to thank the staff of
Crown Sports Plc for their contribution to the
company’s performance in 2003.
RAY PIERCE
Chairman Crown Sports plc operates the Dragons Health
Club brand which currently consists of 21 mid
sized health and fitness clubs across England that
provide gym, swimming, spa, racquets and social
facilities.
Despite the continuing difficult trading environment in
2003 we can report that last year we achieved a
number of our key business and financial objectives. 
In particular we have:
• disposed of our identified non core businesses
enabling us to focus on the health and fitness
sector where we see good long term prospects for
growth;
• increased the operating profit of our continuing
business by 32%;
• improved our overall financial position with a
further £18m of debt paid down in a business
which is underpinned by a high level of freehold
and long leasehold assets.
During 2003, as a result of the competitive market
conditions and the increasing level of new
membership deals and offers both the yield per
member and joining fees were put under pressure.
Primarily as a result of these factors our membership
revenues fell by 6%, however this was offset by
operational cost reductions of 11% which resulted in
an operating profit before amortisation and any central
costs of £6.0m, which was in line with previous year’s
performance.
Importantly, the Dragons business maintained its
strong focus on customers which resulted in a 21%
reduction in the number of members terminating their
membership compared to the previous year. This was
due, in part, to our unique Dragons Promise retention
programme and the introduction of new categories of
longer term memberships. As a result we reversed the
previous decline in membership and in 2003 grew our
membership finishing the year at just over 51,500. 
In the area of joiners we introduced a number of new
membership initiatives and in the latter part of the year
recruited additional marketing expertise and resource
that contributed to an improvement in our sales
position.
In addition, we invested £0.4m in refurbishment 
work in 6 clubs in order to improve the member
environment and enhance the sales potential. Early
results have been positive and as a result we plan to
roll out these improvements into a further group of
clubs in 2004. 
All of the above financial performance excludes the
Leamington Spa club which was sold as a going
concern for £1.3m. The sale of the club, which was our
only town centre operation and did not reflect the
location profile of the rest of the group, represented a
good opportunity to generate cash that has been used
to further pay down debt.
Looking forward, we believe that the measures put in
place during 2003 have put us in a good position to
take advantage of the long term positive trends in
health and fitness.
In particular, the Dragons business will benefit from
the following:
• a robust member base with a high percentage of
the more loyal over 35’s age group and a proven
record of retention improvement;
• strong cash generation combined with a high
freehold and long leasehold asset base;
• a solid management team who have a proven
ability to deliver substantial cost efficiencies and
positive member trends.
CHIEF EXECUTIVE’S REVIEW Four Five
In the short term the market remains tough and highly
competitive, but we are continuing to see encouraging
growth in our membership levels as a result of highly
effective retention programmes combined with strong
marketing and club specific pricing strategies. 
Finally, in the first quarter of 2004 we can report that
on a like for like basis the number of new joiners has
increased by 11%, this was combined with better
retention, with a 13% reduction in the number of
leavers. Overall, the net increase in members is almost
3 times that achieved in the first quarter of last year.
MARTYN GREALEY
Chief Executive GROUP PERFORMANCE
Group operating profit (before exceptional items) was
£3.0m (2002: £4.3m). 
Group profit (before tax and exceptional items) for the
year ended 31st December 2003 was £1.0m compared
to £2.2m in 2002, and after exceptional items was
£2.0m loss (2002: £6.1m loss). 
In the year we have taken a number of exceptional
items relating to the restructuring of our businesses
and the reassessment of a number of key balance sheet
values. These exceptional items, totalling £3.0m, are
described more fully below. 
Goodwill amortisation before exceptional items for the
year was £0.4m (2002: £0.8m) 
Earnings before interest, tax, depreciation and
amortisation (EBITDA) and before exceptional items,
for the Group, was £5.6m compared to £7.8m in
2002. The EBITDA for continuing businesses has
increased to £5.8m compared to £5.1m in 2002.
Operating Results of Crown Sports Divisions
T urnover Operating Operating Operating
£m Profit Profit/ Margin
(1)
before (loss) %
exceptional £m
items
£m
Continuing businesses
Dragons Health Clubs 22.6 6.0 6.0 26.5%
Central Costs – (2.3) (2.5) –
Goodwill and other 
intangibles amortisation
continuing businesses – (0.2) (0.2) –
Total continuing businesses 22.6 3.5 3.3 15.4%
Discontinued businesses
Fitness Express 3.1 0.1 0.1 3.2%
Other Businesses 0.6 (0.4) (0.4) –
Goodwill and other 
intangibles amortisation
discontinued businesses – (0.2) (3.0) –
Total discontinued businesses 3.7 (0.5) (3.3) –
Total 26.3 3.0 0.0 11.4%
(1) Operating margin excludes exceptional items.
Charges for goodwill have been shown separately
above to allow for better understanding of the under-
lying trading of these businesses. The segmental
analysis set out in note 2 on page 30 includes the
goodwill charge within the net result of each business
segment.
OPERATING AND FINANCIAL REVIEW Six
DRAGONS HEALTH CLUBS
The 22 Dragons health clubs (prior to the sale of the
Leamington Spa club on 20 January 2004) decreased
turnover by 8% to £22.6m which includes the negative
impact of franchising food and beverage operations in
a number of clubs. Operating profit before
amortisation stayed flat at £6.0m. Membership
increased over the course of the year to 51,500. 
FITNESS EXPRESS
Fitness Express is a management contract business in
the health and fitness market and was acquired by
Crown Sports plc in April 2001. Turnover decreased
by 9% to £3.1m (2002: £3.5m) and operating profit
before amortisation decreased to £0.1m (2002:
£0.3m). Membership numbers have increased to
21,500 at the year end. 
The business was disposed of on 30 March 2004 and
has been classified as a discontinued operation.
OTHER BUSINESSES
Other businesses comprise 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 8 Golf Clubs. The
Crown Golf business was disposed of 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. Crown Content achieved turnover
of £0.5m (2002: £1.9m) and operating loss of £0.3m
before goodwill amortisation and exceptional items
(2002 profit: £0.1m). The business was disposed of on
5 August 2003.
The Winning Line is a specialist betting business and
was acquired by Crown Sports Plc in April 2001. The
Winning Line achieved turnover of £0.1m (2002:
£0.8m) and operating loss before goodwill
amortisation, exceptional items and minority interests
of £0.1m (2002 profit: £0.1m). This business was
disposed of on 28 April 2003.
These businesses have all been classified as
discontinued operations. Seven
EXCEPTIONAL ITEMS
Exceptional items are as follows:
£m
Impairment of Goodwill and
other tangible assets (see below) 2.9
Reorganisation/restructuring costs 0.1
Total operating exceptional items 3.0
Profit on disposal of Crown Golf (0.4)
Profit on disposal of The Winning Line (0.1)
Loss on disposal of Crown Content 0.5
Total exceptional costs (3.0)
Re-organisation costs relate to write-off of termination
payments made to senior managers and staff, following
the reorganisation of the operations reflecting the
Group’s increased focus on the Dragons Health Clubs
business and disposal of the non-core operations.
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
£2.9m. This all relates to goodwill that arose on the
acquisition of the Fitness Express business, Studio
Fitness Enterprises Ltd, and the write down reflects the
consideration received on the sale of the business on 
30 March 2004.
INTEREST
Net interest payable has reduced to £2.0m before
exceptional items (2002: £2.2m). No exceptional
interest charges have been made this year (2002:
£0.8m).
Net interest excluding exceptional items was covered
1.5 times by operating profit before exceptional items
(2002: 1.9 times).
TAXATION
The tax charge for the year was £0.3m (2002: £1.0m).
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 0.3p (2002: 0.4p) and the loss per share after
exceptional items was 0.8p (2002: 2.5p loss).
DIVIDENDS
The Company currently has a substantial deficit on
distributable reserves and is therefore unable to pay
dividends to the shareholders. Subject to shareholder
approval at the Annual General Meeting, the Board is
planning to undertake a capital restructuring exercise
whereby the deficit on distributable reserves is offset
against the share premium account. This will allow the
payment of dividends from profits made after the date
when this restructuring becomes effective.
CASH FLOW
Cash inflow from operating activities (before
exceptional items) for the year was £5.0m (2002:
£5.2m). Net cash outflows from capital expenditure
and financial investment was £1.3m (2002: £11.4m
inflow). The net cash inflows from acquisitions and
disposals was £15.0m (2002: £0.6m outflow). 
The net cash outflow was £0.7m (2002: £2.3m),
funded through increased borrowings.
BANKING FACILITIES
Net debt at the year end amounted to £18.0m,
resulting in a balance sheet gearing ratio of 37%.
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 over
the duration of the facility. Where early repayments
have been made amortisation of these costs has been
accelerated.
As at 31 December 2003 the bank loans outstanding
under these facilities amounted to £17.4m (2002:
£33.5m). Following the sale of the Dragons club at
Leamington Spa on 20 January 2004 and the disposal
of Fitness Express on 30 March 2004, the loans were
reduced to £15.0m (see Post Balance Sheet Events
below). Following these transaction the balance sheet
gearing ratio fell to 31%. OPERATING AND FINANCIAL REVIEW continued Eight
SHAREHOLDERS’ FUNDS
Shareholders’ funds reduced in the year by £2.3m to
£48.7m (2002: £51.0m).
The retained loss for the year was £2.3m (2002:
£7.2m). 
Net assets per share at the balance sheet date were
16.7p per share (2002: 17.6p).
ACCOUNTING POLICIES AND PRIOR YEAR
ADJUSTMENT
No changes have been made to the Group’s accounting
policies in 2003.
TREASURY POLICIES
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.
POST BALANCE SHEET EVENT
The Dragons Health Club at Leamington Spa was 
sold on 20 January 2004 for £1.3m. Studio Fitness
Enterprises Ltd was sold on 30 March 2004 for
£1.15m. After deducting the costs of the sale, the net
proceeds from both of these transactions were used to
repay bank debt.
TRANSITION TO INTERNATIONAL
FINANCIAL REPORTING STANDARDS
For reporting periods beginning on or after 1 January
2005, the consolidated accounts of the group must
comply with International Financial Reporting
Standards (IFRS).
These financial statements have been prepared in
accordance with UK accounting standards. The
consolidated financial performance and financial
position as disclosed in these financial statements may
be significantly different if determined in accordance
with IFRS. Major differences between UK accounting
standards and IFRS identified to date as potentially
having a significant effect on the consolidated financial
statements may include: fair value accounting for all
financial instruments, including derivatives; the
requirement to provide for deferred taxation on
potential capital gains calculated on the book value of
revalued properties and fair value adjustments arising
on acquisition; and accounting for the intrinsic fair
value of the cost of share options granted to employees
in the profit and loss account. The group has not
quantified these differences. 
This summary should not be taken as an exhaustive
list of all the differences between UK accounting
standards and IFRS that potentially have a significant
impact on the consolidated financial statements. No
attempt has been made to identify all disclosure,
presentation or classification differences that would
affect the manner in which transactions or events are
presented.
In addition, the bodies that establish UK accounting
standards and IFRS have significant ongoing projects
that could affect the potential differences and the
impact of these differences on the future consolidated
financial statements. The actual impact on the
consolidated accounts of the adoption of IFRS will
depend on the standards applicable and the particular
circumstances prevailing on adoption of IFRS on 1
January 2005.
DIANE JARVIS
Finance Director, Member of Executive Committee Nine BOARD OF DIRECTORS
THE BOARD
The Directors of the company are currently:
RAY PIERCE
Non-Executive Chairman (58)
Ray Pierce joined the Board as Non-Executive Director
on 1 January 2001. He took 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 (45)
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.
MAURICE KELLY
Non-Executive Director (45)
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.
SIMON TURNER
Non-Executive Director (35)
Simon Turner joined the Board as a Non-Executive
Director on 24 February 2004.
Simon is Managing Partner of Inflexion plc, the 
AIM listed private equity management company 
which focuses on mid-market investments. Prior to
establishing Inflexion in 1999 Simon was co-head of
the private equity business for Daiwa Europe Ltd.
MARK HARDGRAVE
Alternate Non-Executive Director (46)
Mark Hardgrave joined the Board as Non-Executive
Director on 14 January 2003. He resigned on 25
March 2003, on the appointment of Maurice Kelly.
Mark was appointed as an alternate Non-Executive
Director to Maurice Kelly on 23 June 2003. As detailed
below, Maurice Kelly is appointed to the Board as a
representative of Bennelong Group. When he is unable
to attend Board meetings then Mark Hardgrave is
allowed to attend as an alternate director for
Bennelong. If Maurice Kelly attends the Board
meetings then Mark Hardgrave does not attend.
The Directors who have served since 1 January 2003
are shown on page 11. BOARD OF DIRECTORS continued Ten
AUDIT COMMITTEE
Ray Pierce Chairman
Maurice Kelly (from March 2003)
Simon Turner (from March 2004)
Former members who served during the year
Nick Habgood (from February 2003 to 
February 2004)
Martin Knight (to January 2003)
REMUNERATION COMMITTEE
Ray Pierce Chairman
Maurice Kelly (from March 2003)
Simon Turner (from February 2004)
Former members who served during the year
Nick Habgood (from February 2003 to 
February 2004))
Mark Hardgrave (from February 2003 to 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 (39)
Diane joined Crown Sports Plc in November 2001 as
Clubs Division Finance Director and since has taken
on the role of Finance Director for the Group, 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 (39)
Dave served as a member of this committee until the
disposal of Fitness Express in March 2004.
RISK MANAGEMENT COMMITTEE
The Risk Management Committee currently
comprises:
Martyn Grealey
Diane Jarvis
STEVE ROBERTS
Group Operations Manager (44)
Steve was appointed Health & Safety Manager in
March 2002 and promoted to Group Operations
Manager in March 2003. Eleven DIRECTORS’ REPORT
The Directors have pleasure in presenting their report
and the financial statements of the Group for the year
ended 31 December 2003.
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 5 and
the Operating and Financial Review on pages 6 to 8.
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)
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 
resigned 24 February 2004)
M W Hardgrave (appointed 14 January 2003, 
resigned 25 March 2003, 
appointed as alternate director to 
M Kelly on 23 June 2003)
M Kelly (appointed 25 March 2003)
S E H Turner (appointed 24 February 2004)
As detailed below, Maurice Kelly is appointed to the
Board as a representative of Bennelong Group. When
he is unable to attend Board meetings then Mark
Hardgrave is allowed to attend as an alternate director
for Bennelong. If Maurice Kelly attends the Board
meetings then Mark Hardgrave does not attend.
RETIREMENT AND RE-ELECTION OF
DIRECTORS
S E H T urner has been appointed since the last Annual
General Meeting and will offer himself for re-election
at the forthcoming Annual General Meeting.
DIRECTORS’ INTERESTS
The Directors who held office at 31 December 2003 or
subsequently had the following beneficial interests in
the ordinary shares of the Company as at the dates
shown:
At 31 December 2003 At 31 December
or date of appointment 2002
R F Pierce 111,361 111,361
M Grealey – –
N J Habgood – –
M Kelly – –
M W Hardgrave – –
SEHTurner – –
There have been no changes in Directors’ share
interests in the period from 31 December 2003 to 
31 March 2004.
No Director had any contract of significance existing
during the year nor at 31 December 2003, 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 7.37p; the highest and lowest
ordinary share prices during the financial period were
8p and 5.12p respectively.
The average price over the financial year was 6.41p.
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 10 March
2004. DIRECTORS’ REPORT continued Twelve
Number of Percentage of
Ordinary Shares issued ordinary
share capital
Sports Assets
(International) Limited 80,371,086 27.64%
Bennelong UK Ltd 84,294,035 28.99%
Inflexion Plc 57,754,030 19.86%
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%
Sports Assets (International) Ltd and Bennelong UK
Ltd, as part of the Bennelong Group, are both 100%
owned by Chapman Discretionary Trust No 2 of which
Jeff Chapman, a former Director of Crown Sports Plc is
a beneficiary. M Kelly is appointed to the Board as a
representative of Bennelong Group.
Inflexion Plc is a subsidiary of LMS Plc. S E H Turner
is a director of Inflexion Plc and is appointed to the
Board as a representative of LMS Plc.
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 2003 is
calculated at 37 days (2002: 24 days) and for the
Company at 31 December 2003 is calculated at 23
days (2002: 54 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. 
LONDON STOCK EXCHANGE LISTING
The Directors have previously indicated their intention
to discontinue the company’s London Stock Exchange
Listing and transfer the listing to the Alternate
Investment Market. It is anticipated that the transfer to
AIM will be effective by 6 May 2004.
POST BALANCE SHEET EVENTS
The Dragons Health Club at Leamington Spa was sold
on 20 January 2004 for £1.3m. Studio Fitness
Enterprises Ltd, which trades as Fitness Express, was
sold on 30 March 2004 for £1.15m.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held at 10.00 am
on 10 May 2004 at the offices of Ashurst, 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.
GOING CONCERN
After making enquiries, the Directors have a
reasonable expectation that the Group has adequate
resources to continue in operational existence for the
foreseeable future. For this reason, they continue to
adopt the going concern basis in the accounts.
AUDITORS
In accordance with Section 384 of the Companies Act
1985, a resolution regarding the re-appointment of
KPMG Audit Plc as auditors of the Group will be
proposed at the forthcoming Annual General Meeting.
Signed by order of the Board of Directors
R F PIERCE
Chairman Thirteen REMUNERATION REPORT
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 10. 
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 2003.
TOTAL SHAREHOLDER RETURN
The following graph charts the total cumulative shareholder return of
the company since 1 January 1999.
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.
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.
A bonus of £15,000 was payable to Martyn Grealey in respect of the year ended 31 December 2003.
PENSION SCHEME ARRANGEMENTS
The Company contributes an agreed sum to pension schemes of Executive Directors, which are externally
administered, for the benefit of Directors. 
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.
During the year contributions were made to the pension scheme of M Grealey of £15,000 (2002 contributions:
£7,849). No payments have been made during the year to any other Director who served during 2003.
0
1999
Crown Sports – Total Return
TOTAL CUMULATIVE SHAREHOLDER 
RETURN FOR THE FIVE-YEAR PERIOD 
TO 31 DECEMBER 2003
FTSE Leisure & Hotels – Total Return
2000 2001 2002 2003 2004
50
100
150
200
250 COMPENSATION FOR LOSS OF OFFICE
No compensation for loss of office was paid to any Directors in 2003 (2002: £222,926).
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 Healthcare 2003 Total 2002 Total
Benefits
£££ £ £
J R Chapman (resigned 14 January 2003) – – – – –
M P Knight (resigned 14 January 2003) – – – – 115,000
S Glew (resigned 9 August 2002) – – – – 277,262
R Pierce 40,000 – – 40,000 65,000
R Rayne (resigned 14 January 2003) – – – – –
M Grealey 158,160 15,000 801 173,961 109,864
N Habgood* (resigned 24 February 2004) 22,000 – – 22,000 –
M Kelly** 29,400 – – 29,400 –
M Hardgrave – – – – –
Total 249,560 15,000 801 265,361 567,126
* Fees paid to LMS plc of £22,000 in 2003 for the services of N Habgood
** Fees paid to Bennelong UK Ltd of £20,000 for the services of M Kelly & to Kelly Consulting of £9,400 in 2003
Aggregate emoluments in respect of qualifying services to Directors, excluding pension contributions, amounted
to £265,361 (2002: £234,336).
Fees payable to Bennelong and LMS, who are substantial shareholders and in which J Chapman and R Rayne
respectively have interests, in the year to 31 December 2003 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.
REMUNERATION REPORT continued Fourteen DIRECTOR’S SHARE OPTIONS
At 1 Jan Awarded Exercised Lapsed At 31 Dec Exercise Earliest Expiry
2003 2003 price date of date
exercise
M P Knight 1,000,000 – – 1,000,000 – – – –
M P Knight 500,000 – – 500,000 – – – –
R F Pierce 250,000––– 250,000 30p 25 Jan 25 Jan
2004 2011
M Grealey 1,000,000––– 1,000,000 12.5p 30 April 29 April
2005 2012
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 8p and 5.12p respectively. The price
at the year end was 7.37p.
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 Plc. 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. 
On behalf of the Board
R F PIERCE
Chairman, Remuneration Committee
Fifteen 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 composition of the Board changed on 14 January 2003 when Ray Pierce was appointed Chairman and Martyn
Grealey was appointed Chief Executive. Following these appointments there is now a clear delineation of
responsibility between the Chairman and Chief Executive.
Following the changes to the Board 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. An Alternate Director
has been appointed for one of the non-executive directors. The alternate director will attend Board meetings only
if the nominated director for whom he is acting as alternate is unable to attend. 
Ray Pierce has continued to be designated the senior independent non-executive Director, throughout 2003.
Biographical details of the Directors are given on page 9. 
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 is appointed as Company Secretary to the Group.
All Directors appointed during the period will seek re-election 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 receives reports from the Risk Management Committee concerning the effectiveness of the Group
Risk Management process.
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 Directors’ remuneration on
page 13 gives full details of the company’s policy on executive remuneration and of individual Directors’
remuneration packages.
CORPORATE GOVERNANCE Sixteen 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.
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 fulfilling his responsibilities for directing and promoting the profitable operation and
development of the Group. The Committee has been led by the Chief Executive throughout 2003.
The composition of each of these Committees is given on page 10.
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;
Seventeen • The Treasury position of the Group 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 2003 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 that arose during 2002, including the events of the final quarter involving the offer for the
company by Bennelong, have made full compliance with the Combined Code difficult to achieve in 2003.
An agreement was negotiated with Bennelong towards the end of 2002 that governed the composition of the Board
from January 2003. The agreement required the Board to be reconstituted to specifically include:
• a new independent Non Executive Chairman
• a Chief Executive 
• a Non Executive Director nominated by London Merchant Securities Plc & European Golf club Investment
Ltd
• a 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. An Alternate Director has been appointed for one of the non-executive Directors, the Alternate Director is
also not fully independent as he has also been nominated by a specific shareholder.
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 2003 to the current date as follows:
CORPORATE GOVERNANCE continued Eighteen Nineteen
Despite the areas of non-compliance discussed above the Board consider that during 2003 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 Appointment of a
Senior Independent
Non-Executive
Director
A.3.2 Majority of Non-
Executives should be
independent
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
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 fully comply with this
provision of the code going forward, as Ray Pierce holds both this post and the
post of Chairman.
From 14 January 2003 under the terms of the agreement described above
neither of the Non Executive Directors (excluding the Chairman) is fully
independent. Therefore the Board will not comply with this provision going
forwards.
Full compliance has not been achieved under the terms of the agreement
described above. The Non Executive Directors (other than the Chairman) are
not fully independent. This non-compliance will continue going forward.
This provision has not been met in 2003 and non-compliance will continue
going forwards. 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. 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
STATEMENT OF DIRECTORS’ RESPONSIBILITIES Twenty We have audited the financial statements on pages 23 to 51. 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 20, 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 18 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 un-audited 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. 
Twenty One INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF CROWN SPORTS PLC 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.
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 31st
December 2003 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
31 March 2004
INDEPENDENT AUDITORS’ REPORT Twenty Two
TO THE MEMBERS OF CROWN SPORTS PLC Note Continuing Discontinued Total Continuing Discontinued Total
Operations Operations Operations Operations Operations Operations
2003 2003 2003 2002 2002 2002
£'000 £'000 £'000 £'000 £'000 £'000
Turnover 2 22,586 3,735 26,321 24,622 12,396 37,018
Cost of Sales (462) (553) (1,015) (429) (3,215) (3,644)
Gross Profit 22,124 3,182 25,306 24,193 9,181 33,374
Administrative expenses (18,651) (3,633) (22,284) (21,589) (8,143) (29,732)
Exceptional administration expenses 4 (147) (2,870) (3,017) (2,798) (7,692) (10,490)
Total administrative expenses (18,798) (6,503) (25,301) (24,387) (15,835) (40,222)
Other operating income – – – – 679 679
Operating profit / (loss) before 
exceptional items 3,473 (451) 3,022 2,604 1,717 4,321
Exceptional administration expenses 4 (147) (2,870) (3,017) (2,798) (7,692) (10,490)
Total operating profit / (loss) 2, 3 3,326 (3,321) 5 (194) (5,975) (6,169)
Net interest payable and similar charges 6 (1,975) (3,019)
Amounts written back to investments 4 – 2,893
Income from other fixed 
asset investments – 149
(Loss) on disposal of 
discontinued operations 4 (11) –
(Loss) on ordinary activities 
before taxation (1,981) (6,146)
Taxation on loss on ordinary activities 7 (273) (1,021)
(Loss) on ordinary activities 
after taxation 8 (2,254) (7,167)
Minority interest – (3)
Loss for the financial year (2,254) (7,170)
Basic and diluted loss per share (pence) 10 (0.8) (2.5)
Basic and diluted earnings per share before 
exceptional items and investments 
written off (pence) 10 0.3 0.4
Twenty Three GROUP PROFIT AND LOSS ACCOUNT
Year Ended 31 December 2003 Note 2003 2002
£’000 £’000
Fixed Assets
Concessions, licences, trademarks and similar rights 11 – 1,301
Goodwill 11 3,847 7,348
Negative goodwill 11 (1,839) (1,877)
2,008 5,471
Total intangible assets 11 2,008 6,772
Tangible assets 12 69,954 87,324
Other investments 13 – –
Total fixed assets 71,962 94,096
Current Assets
Stocks 14 147 675
Debtors 15 1,930 2,698
Investments 16 – 72
Cash at bank and in hand – 470
2,077 3,915
Creditors: Amounts falling due within one year 17 (6,537) (12,724)
Net current (liabilities) (4,460) (8,809)
Total assets less current liabilities 67,502 85,287
Creditors: Amounts falling due after more than one year 18 (15,873) (31,596)
Provisions for liabilities and charges 20 (2,870) (2, 571)
Net assets 48,759 51,120
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 (26,855) (24,601)
Shareholders funds 48,759 51,013
Minority interests – 107
Total capital employed 48,759 51,120
These financial statements were approved by the Board of Directors on the 31 March 2004 and were signed on
their behalf by:
R F Pierce M Grealey
GROUP BALANCE SHEET Twenty Four
Year Ended 31 December 2003 Note 2003 2002
£’000 £’000
Fixed assets
Tangible assets 12 37 1,586
Investments 13 38,612 41,646
Total Fixed Assets 38,649 43,232
Current assets
Stocks 14 – 28
Debtors 15 23,151 40,077
23,151 40,105
Creditors: Amounts falling due within one year 17 (3,155) (6,873)
Net current assets 19,996 33,232
Total assets less current liabilities 58,645 76,464
Creditors: Amounts falling due after more than one year 18 (15,819) (31,263)
Provisions for liabilities and charges 20 (28) 5
Net assets 42,798 45,206
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 (32,816) (30,408)
Equity shareholders funds 42,798 45,206
These financial statements were approved by the Board of Directors on the 31 March 2004 and were signed on
their behalf by:
R F Pierce M Grealey
Twenty Five COMPANY BALANCE SHEET
Year Ended 31 December 2003 Group
2003 2002
£’000 £’000
Loss for the financial year (2,254) (7,170)
Loss on foreign currency translation – (130)
Net decrease in Shareholder’s funds (2,254) (7,300)
Opening Shareholders’ funds (equity) 51,013 58,313
Closing Shareholders’ funds (equity) 48,759 51,013
2003 2002
£’000 £’000
Loss for the financial year (2,254) (7,170)
Exchange movements on foreign currency net investments – (130)
Total recognised losses since last annual report (2,254) (7,300)
GROUP STATEMENT OF Twenty Six
TOTAL RECOGNISED GAINS AND LOSSES
Year Ended 31 December 2003
RECONCILIATION OF MOVEMENT IN
SHAREHOLDERS’ FUNDS
Year Ended 31 December 2003 Twenty Seven CASH FLOW STATEMENT
Year Ended 31 December 2003
Note 2003 2002 
£’000 £’000
Net cash flow from operating activities 25 5,045 5,287
Returns on investments and servicing of finance
Net interest paid (1,254) (3,325)
Dividends paid to minority shareholders by subsidiary (35)
Income from other fixed asset investments 149
Net cash outflow from returns on investments and servicing of finance (1,254) (3,211)
Taxation
Cash outflow due to UK Corporation Tax and Australian equivalent – (255)
Capital expenditure and financial investment
Receipts from sales of fixed asset investments – 14,486
Payments to acquire tangible fixed assets (1,307) (3,130)
Receipts from sales of tangible fixed assets 50 21
Net cash (outflow)/inflow for capital expenditure and financial investment (1,257) 11,377
Acquisitions and disposals
Costs of acquiring subsidiary undertakings (870) (625)
Net proceeds from disposal of discontinued operations 16,238 –
Net cash balances leaving the group with disposal of discontinued operations (371) –
Net cash inflow/(outflow) acquisitions and disposals 14,997 (625)
Net cash inflow before financing 17,531 12,573
Financing
Net cash outflow from repayment of bank loans (17,928) (14,200)
Net cash (outflow) from reduction in finance leases (279) (597)
Net cash outflow from financing (18,207) (14,797)
Decrease in cash (676) (2,224 ) 1. ACCOUNTING POLICIES
Basis of Accounting
The financial statements have been prepared under the historical cost convention and in accordance with
applicable accounting standards. 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 2003.
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.
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.
NOTES TO THE FINANCIAL Twenty Eight
STATEMENTS
Year Ended 31 December 2003 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 instalments 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 un-amortised 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 instalments 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 instalments.
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.
Twenty Nine 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 was 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 Investment in 2002 reflects a subsidiary undertaking’s investment in Crown Sports plc shares carried
at cost. The subsidiary was sold early in 2003. UTIF 37 – purchases and sales of own shares requires, if material,
the company to reclassify the assets in shareholders funds. This was not done, as such an adjustment is not
considered material.
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 
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Dragons Health Clubs 22,586 24,622 68,224 67,950
Central liabilities – – (20,431) (37,716)
Total continuing businesses 22,586 24,622 47,793 30,234
Fitness Express (Discontinued) 3,149 3,471 966 3,826
Golf (Discontinued) 7 6,225 – 15,455
The Winning Line (Discontinued) 50 760 – 40
Crown Content (Discontinued) 529 1,940 – 1,565
Total discontinued businesses 3,735 12,396 966 20,886
Total 26,321 37,018 48,759 51,120
NOTES TO THE FINANCIAL Thirty
STATEMENTS continued
Year Ended 31 December 2003 2. SEGMENTAL ANALYSIS continued
Operating Operating 
profit 2003 profit 2002
£’000 £’000
Before exceptional items:
Dragons Health Clubs 5,810 5,848
Central costs (2,337) (3,244)
Total continuing businesses 3,473 2,604
Fitness Express (Discontinued) (69) 124
Golf (Discontinued) – 1,823
The Winning Line (Discontinued) (72) 22
Crown Content (Discontinued) (310) (252)
Total discontinued businesses (451) 1,717
Total 3,022 4,321
Exceptional items:
Dragons Health Clubs – –
Central costs (147) (2,798)
Total continuing businesses (147) (2,798)
Fitness Express (Discontinued) (2,870) –
Golf (Discontinued) – (1,442)
The Winning Line (Discontinued) – (594)
Crown Content (Discontinued) – (5,656)
Total discontinued businesses (2,870) (7,692)
Total (3,017) (10,490)
After exceptional items:
Dragons Health Clubs 5,810 5,848
Central costs (2,484) (6,042)
Total continuing businesses 3,326 (194)
Fitness Express (Discontinued) (2,939) 124
Golf (Discontinued) – 381
The Winning Line (Discontinued) (72) (572)
Crown Content (Discontinued) (310) (5,908)
Total discontinued businesses (3,321) (5,975)
Total 5 (6,169)
Thirty One 2. SEGMENTAL ANALYSIS continued
An analysis by geographic region is given below:
Turnover T urnover Net Assets Net Assets 
2003 2002 2003 2002
£’000 £’000 £’000 £’000
United Kingdom 25,792 35,078 48,759 49,555
Australia 529 1,940 – 1,565
Total 26,321 37,018 48,759 51,120
Operating Operating 
profit 2003 profit 2002
£’000 £’000
Before exceptional items
United Kingdom 3,332 4,573
Australia (310) (252)
Total 3,022 4,321
Exceptional items
United Kingdom (3,017) (4,834)
Australia – (5,656)
Total (3,017) (10,490)
After exceptional items
United Kingdom 315 (261)
Australia (310) (5,908)
Total 5 (6,169)
NOTES TO THE FINANCIAL Thirty Two
STATEMENTS continued
Year Ended 31 December 2003 3. OPERATING PROFIT / (LOSS)
Operating profit/(loss) is stated after charging/(crediting):
2003 2002
£’000 £’000
Amortisation 360 800
Depreciation – tangible owned fixed assets 2,013 2,470
Depreciation – tangible assets held under finance leases and hire purchase contracts 259 256
Loss on disposal on fixed assets 18 –
Exceptional costs (Note 4) 3,017 10,490
Auditors' remuneration
– statutory audit – company 36 63
– statutory audit – group 103 136
– taxation 17 52
– transaction costs 89 275 
The transaction costs in 2003 represent amounts paid to KPMG Melbourne in connection with the disposal of
Crown Content. The equivalent cost in 2002 represents amounts paid to KPMG London in connection with the
sale of Crown Golf and the bid for the company by Bennelong. 
4. EXCEPTIONAL ITEMS
Note 2003 2002
£’000 £’000
Impairment of goodwill and other intangible assets
1
11 2,870 6,692
Impairment of fixed assets – 1,000
Costs of restructuring continuing operations
2
147 428
Costs of put option re: The Winning Line – 870
Bid defence costs – 1,500
Exceptional operating items 3,017 10,490
Profit on disposal of Crown Golf (426) –
Profit on disposal of The Winning Line (64) –
Loss on disposal of Crown Content 501 –
Loss on disposal of discontinued operations 11 –
Amounts written back to trade investments – (2,893)
Refinancing on early repayment of loans – 776
Total exceptional items 3,028 8,373
1 
A review of the goodwill and other intangible items arising on previous year’s acquisitions has led to an impairment provision being made against
Fitness Express of £2,870k in the year to 31 December 2003.
2 
Restructuring Costs: In the year to 31 December 2003 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 associated fees arising from
these terminations.
Thirty Three 5. PARTICULARS OF EMPLOYEES
The average number of staff employed by the Group during the financial year amounted to:
2003 2002
No. No.
Management 34 36
Administrative 33 50
Operational 1,000 1,339
Total 1,067 1,425
The aggregate payroll costs of the above were:
2003 2002
£’000 £’000
Wages and salaries (including £0.1m of exceptional restructuring costs (2002: £0.4m)) 9,672 12,863
Social security costs 708 947
Other pension costs 75 152
Total 10,455 13,962
Detailed information concerning Directors emoluments, pensions, shareholdings and options is shown in the
Report on Directors’ Remuneration on page 13.
6. NET INTEREST PAYABLE
2003 2002
£’000 £’000
Interest payable on bank borrowing (2002 includes £0.8m 
of exceptional interest costs on refinancing) 1,946 2,988
Finance charges 43 81
1,989 3,069
Interest receivable (14) (50)
Net interest payable 1,975 3,019
NOTES TO THE FINANCIAL Thirty Four
STATEMENTS continued
Year Ended 31 December 2003 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
2003 2002
£’000 £’000
Current Tax
UK Corporation Tax / Australian business tax (26) 184
Total Current Tax (note 7 b) (26) 184
Deferred Tax
Origination and reversal of timing difference (note 7 c) 299 837
Tax on loss on ordinary activities 273 1,021
b) Factors affecting current tax
The tax credit arising on the loss on ordinary activities for the year is lower than the standard rate of corporation
in the UK of 30% (2002: 30%). The differences are reconciled below:
2003 2002
£’000 £’000
Loss on ordinary activities (1,981) (6,146)
Loss on ordinary activities before tax multiplied by the standard rate of 
corporation tax in the UK of 30% (2002 30%) (594) (1,844)
Goodwill amortisation and impairment 969 2,268
Fixed Asset impairment – 300
Depreciation in excess of / (less than) capital allowances (183) (534)
Amounts written back to investments – (868)
Tax losses not utilised 101 652
Tax losses brought forward and used in the current year (565) (316)
The Winning Line tax charge, not eligible for group relief – 24
Non deductible trading expenses 272 502
Reverse over provision Australian Business Tax (26) –
Total current tax (credit) / charge (note 7 a)) (26) 184
c. Deferred tax
The deferred tax included in the balance sheet as follows:
2003 2002
£’000 £’000
Shown on the balance sheet as Provisions for liabilities and charges 2,870 2,571
At 1 January 2003 2,571
Accelerated capital allowances (183)
Trading losses 482
Deferred tax (credit)/charge in profit and loss account 299
At 31 December 2003 2,870
d. Factors that may affect future tax charges
The Group anticipates that the effective tax rate will be approximately 30% in future years.
Thirty Five 8. LOSS ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANY
The loss dealt with in the accounts of the parent Company was £2,408,000 (2002 restated: loss £15,471,000). 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 2003 or the previous period.
10.LOSS PER SHARE
Basic and diluted loss per ordinary share
2003 2002
Loss per ordinary share (pence) (0.8) (2.5)
Diluted loss per ordinary share (pence) (0.8) (2.5)
Earnings per share have been calculated on the net basis on the loss for the year, of £2,254,000 (2002: £7,170,000
loss) using the weighted average number of ordinary shares in issue of 290,768,005 (2002: 290,768,005).
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 290,768,005
(2002: 290,768,005).
Basic and diluted earnings per share before exceptional items and amounts written off investments
2003 2002
Earnings per ordinary share (pence) 0.3 0.4
Diluted earnings per ordinary share (pence) 0.3 0.4
The profit for the year before exceptional items used in calculating the above earnings per share has been arrived at
as follows:
2003 2002
£’000 £’000
Loss for the year (2,254) (7,170)
Add: exceptional items (per note 4) 3,028 8,373
Tax impact of exceptional items (per note 7) (44) –
Profit for the year before exceptional items 730 1,203
NOTES TO THE FINANCIAL Thirty Six
STATEMENTS continued
Year Ended 31 December 2003 11.INTANGIBLE FIXED ASSETS
Group
Concessions, Goodwill Negative Total
licences and goodwill
similar rights
£’000 £’000 £’000 £’000
Cost
At 1 January 2003 4,931 14,888 (1,916) 17,903
Addition – 782 – 782
Disposal (4,931) (7,796) – (12,727)
At 31 December 2003 – 7,874 (1,916) 5,958
Amortisation and impairment
At 1 January 2003 3,630 7,540 (39) 11,131
Charge for the year – 398 (38) 360
Impairment provision – 2,870 – 2,870
Goodwill impaired and amortised on disposals 
of discontinued businesses (3,630) (6,781) – (10,411)
At 31 December 2003 – 4,027 (77) 3,950
Net Book Value
At 31 December 2003 – 3,847 (1,839) 2,008
At 31 December 2002 1,301 7,348 (1,877) 6,772
The review of the value of goodwill arising on previous acquisitions has resulted in the impairment provision
included above. 
The company has no intangible assets.
Thirty Seven 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 2003 56,912 26,918 8,756 14,247 106,833
Additions 280 103 7 917 1,307
Disposals – (3) – (272) (275)
On sale of discontinued businesses (24,161) – – (2,414) ( 26,575)
At 31 December 2003 33,031 27,018 8,763 12,478 81,290
Depreciation
At 1 January 2003 10,202 894 399 8,014 19,509
Charge for the year 316 292 329 1,335 2,272
On disposals – – – (206) (206)
On sale of discontinued businesses ( 9,192) – – (1,047) (10,239)
At 31 December 2003 1,326 1,186 728 8,096 11,336
At 31 December 2003 31,705 25,832 8,035 4,382 69,954
At 31 December 2002 46,710 26,024 8,357 6,233 87,324
Finance lease and similar agreements
Included within the net book value of fixtures, fittings, equipment and motor vehicles is £712,275 (2002:
£1,183,713) relating to assets held under finance lease agreements. The depreciation charged to the accounts in
the period in respect of such assets amounted to £259,273 (2002: £255,965).
NOTES TO THE FINANCIAL Thirty Eight
STATEMENTS continued 
Year Ended 31 December 2003 12. TANGIBLE FIXED ASSETS continued
Company
Freehold Fixtures, Motor Total
Property Fittings & Vehicles
Equipment 
£’000 £’000 £’000 £’000
Cost
At 1 January 2003 1,676 416 18 2,110
Additions – 1 – 1
Disposals – (54) – (54)
On sale of discontinued businesses (1,676) (309) – (1,985)
At 31 December 2003 – 54 18 72
Depreciation
At 1 January 2003 351 166 7 524
Charge for the year 6 5 11
Disposals – (54) – (54)
On sale of discontinued businesses (351) (95) – (446)
At 31 December 2003 – 23 12 35
At 31 December 2003 – 31 6 37
At 31 December 2002 1,325 250 11 1,586
Finance lease and similar agreements
Included within the net book value of fixtures, fittings, equipment and motor vehicles is £nil (2002: £71,572)
relating to assets held under finance lease agreements. The depreciation charged to the accounts in the period in
respect of such assets amounted to £nil (2002: £14,781).
13.FIXED ASSET INVESTMENTS
Group
AIM Listed 
Investment Total
£’000 £’000
Cost
At 1 January 2003 1,858 1,858
Disposals ––
At 31 December 2003 1,858 1,858
Provision for impairment
At 1 January 2003 1,858 1,858
Disposals ––
At 31 December 2003 1,858 1,858
Net Book Value at 31 December 2003 – –
Net Book Value at 31 December 2002 – –
AIM listed investment
The AIM listed investment represents 4,100,000 shares in Clubhaus Plc.
Thirty Nine 13.FIXED ASSET INVESTMENTS continued
Company
AIM Listed Subsidiary Total
Investment Undertakings
£’000 £’000 £’000
Cost
At 1 January 2003 1,858 64,109 65,967
Additions –––
Disposals on sale of discontinued businesses – (22,461) (22,461)
At 31 December 2003 1,858 41,648 43,506
Provisions for diminution in value
At 1 January 2003 1,858 22,463 24,321
Disposals on sale of discontinued businesses – (22,463) (22,463)
Movement – 3,036 3,036
At 31 December 2003 1,858 3,036 4,894
Net Book Value
At 31 December 2003 – 38,612 38,612
At 31 December 2002 – 41,646 41,646
NOTES TO THE FINANCIAL Forty
STATEMENTS continued
Year Ended 31 December 2003 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
Boomsign Limited*** England Ordinary shares 100% Health and fitness 
club operation
Dragons Health Clubs Plc England Ordinary shares 100% Health and fitness 
club operation
Studio Fitness Enterprises Limited England Ordinary shares 100% Health and fitness club 
facilities management
Trainstation Limited*** England Ordinary shares 100% Health and fitness 
club operation
Disposed of 8 January 2003
Batchworth Park Golf Club Limited
(formerly Matchmarvel Ltd) England Ordinary shares 100% Golf club management 
Broke Hill Golf Club Limited England Ordinary shares 100% Provision of golf 
and leisure facilities
E P Golf Limited England Ordinary shares 100% Provisions of golf 
and leisure facilities
Golf Partners International Limited England Ordinary shares 100% Provision of golf 
and leisure facilities
London and Chancery 
Properties Limited England Ordinary shares 100% Land and property 
investment
South Winchester 
Golf Club (1993) Limited England Ordinary shares 100% Golf club management
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
Disposed of 28 April 2003
The Winning Line
(Sport & Leisure) Limited England Ordinary shares 70% Horse racing and 
sporting information
Disposed of 5 August 2003
Crown Content Pty Limited Australia Ordinary shares 100% Sports based publishing
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 One 14.STOCKS
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Goods for resale 147 675 – 28
15.DEBTORS
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Trade debtors 693 990 16 3
Amounts owed by group undertakings – – 22,705 39,323
Other debtors 46 467 64 287
Prepayments and accrued income 1,191 1,241 366 464
1,930 2,698 23,151 40,077
16.CURRENT ASSET INVESTMENTS
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Subsidiary undertaking’s investment in Crown Sports Plc – 72 – –
Current Asset Investment in 2002 reflects a subsidiary undertaking’s investment in Crown Sports plc shares carried
at cost. The subsidiary was sold early in 2003. UTIF 37 – purchases and sales of own shares requires, if material,
the company to reclassify the assets in shareholders funds. This was not done, as such an adjustment is not
considered material.
17.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Bank loans and overdrafts (See note 18) 1,824 3,396 2,460 4,197
Trade creditors 1,272 1,720 123 561
Other creditors including taxation and social security
Social security and other taxes 813 687 – 5
Corporation tax – 227 – –
HP and finance leases 273 439 17 30
Other creditors 240 1,398 101 884
Accruals 1,520 2,404 454 1,079
Deferred income 595 1,634 – 67
Members’ advances – 769 – –
Deferred consideration – 50 – 50
6,537 12,724 3,155 6,873
NOTES TO THE FINANCIAL Forty Two
STATEMENTS continued
Year Ended 31 December 2003 17.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR continued
Members’ advances
The members’ advances represent 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. All member advances were transferred with the sale of the golf clubs on 8 January 2003.
Deferred consideration
Deferred consideration £50,000 related to the acquisition of Trainstation Limited, and was paid in 2003.
18.CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Bank loans 15,805 31,230 15,805 31,226
Other creditors:
HP and finance leases 68 366 14 37
15,873 31,596 15,819 31,263
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 within the Group.
Loan notes
The Company has in issue unsecured loan notes to the value of £55,793 which are guaranteed by Barclays Bank
Plc. These have been included within bank loans due within one year. The loan notes all comprise 3.25%
Guaranteed Unsecured Loan Notes 2006, with a nominal value of £55,793. 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.
Analysis of loans and overdraft repayments
Bank loans and overdraft Loan notes
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Within one year 1,768 2,250 56 1,146
Between one and two years 1,863 3,250 – –
Between two and five years 5,768 11,875 – –
In five years or more 8,174 16,105 – –
17,573 33,480 56 1,146
Hire purchase and finance leases
The hire purchase contracts and finance leases are secured on the assets to which they relate.
Forty Three 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 are conducted in sterling and as such no currency risk exists. The activities of
Crown Content Pty Limited were conducted in Australian Dollars but following the disposal of this business in
2003 and the repayment of borrowings denominated in Australian Dollars, there is no currency risk to the Group.
At the year end there were no foreign currency borrowings. 
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
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%. 
As at 31 December 2003 this financial instrument had a negative market value of £76,000 (2002: £564,000),
which represents the potential cost to the Group should the instrument have been cancelled on that date.
Following the repayments of debt from the proceeds of the sale of the golf business, The Winning Line and Crown
Content, the Group’s debt level is less than that protected by the financial instrument. Accordingly, a provision of
£104,000 against the cost of cancelling the amount of the financial instrument surplus to the Group’s needs was
charged against profit in 2002. During 2003 £49,000 of the provision has been credited to profit against actual
charges incurred under the agreement, and the provision carried forward stands at £55,000 at 31 December 2003. 
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 £55,793.
Borrowings
2003 2002
£’000 £’000
Term loans (See note 18) 17,423 34,626
Bank overdrafts 206 –
Obligations under finance leases and hire purchase contracts 341 805
17,970 35,431
Liquidity risk
The Group is cash positive in its operating activities and is expected to continue to be for the foreseeable future.
NOTES TO THE FINANCIAL Forty Four
STATEMENTS continued
Year Ended 31 December 2003 20.PROVISIONS FOR LIABILITIES AND CHARGES
Deferred Deferred 
Taxation at Taxation at 
1 January Charge for 31 December
2003 2003 2003
£000 £000 £000
Group
Accelerated Capital allowances 3,339 (183) 3,156
Losses (768) 482 (286)
Group Total 2,571 299 2,870
Company
Accelerated Capital allowances (5) 33 28
Losses –––
Company Total (5) 33 28
Losses being carried forward for which no deferred tax assets are recognised are £302,000 (2002: £378,000)
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
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Amounts payable within 1 year 273 439 17 31
Amounts payable between 2 to 5 years 68 366 14 35
341 805 31 66
Forty Five 21.COMMITMENTS UNDER LEASES AND HIRE PURCHASE AND FINANCE 
LEASE AGREEMENTS continued
Annual commitments under non-cancellable operating leases are as follows:
Group
2003 2002
Land and Other Land and Other
buildings buildings
£’000 £’000 £’000 £’000
Leases expiring:
within 1 year 40 19 –52
between 2 to 5 years 55 191 88 95
over 5 years 392 – 293 –
487 210 381 147
Company
The commitment under non-cancellable operating leases within the Company (Crown Sports plc) was transferred
to the company that bought the assets and liabilities of The Chase Golf Club (2002: £960 annual commitment
expiring within two to five years).
22.RELATED PARTY TRANSACTIONS
The Company is quoted on the London Stock Exchange. There was no ultimate controlling party for the Group at
the year end.
The Crown Golf business was sold on 8 January 2003 for £15.4m to Bennelong UK Ltd, a substantial shareholder
in Crown Sports Plc, following the approval of this sale by the shareholders at an Extraordinary General Meeting.
Bennelong UK Ltd is wholly owned by the Chapman Discretionary Trust No 2, of which Jeff Chapman, a former
Director of Crown Sports Plc is a beneficiary . No liabilities or commitments remain between Crown Sports Plc and
Bennelong UK Ltd with regard to this transaction. The subsidiaries which comprised the Crown Golf business are
listed in note 13.
Fees of £71,804 were paid to Crown Sports Plc by Bennelong UK Ltd, a related party as described above, for the
provision of various services during the year. These services included accounting, payroll, human resources
management, health and safety and IT services. The level of services provided reduced through 2003 as the Crown
Golf business developed its own in house expertise in these areas. The only service that continues to be provided
in 2004 is for IT. 
As at 31 December 2003 Crown Sports was owed £11,082 by Bennelong UK Ltd. This balance is included within
trade debtors.
South Winchester Golf Club (1993) Limited was disposed of on 8 January 2003 as part of the disposal of Crown
Golf. This company has a management agreement with South Winchester Golf Club (1993) of which A H Tait and
H W Dixon, former Directors, are trustees. Whilst owned by Crown Sport Plc, under this management agreement
South Winchester Golf Club (1993) Limited received rental income of nil (2002: £75,000) and management
income of nil (2002: £252,668).
Batchworth Park Golf Club Limited (formerly Matchmarvel Limited) was disposed of on 8 January 2003 as part
of the disposal of Crown Golf. This company has a management agreement with Batchworth Park Golf Club of
which A H Tait and H W Dixon, former Directors, are trustees. Whilst owned by Crown Sport Plc, under this
management agreement Batchworth Park Golf Club Limited received management income of nil (2002:
£351,004).
NOTES TO THE FINANCIAL Forty Six
STATEMENTS continued
Year Ended 31 December 2003 22.RELATED PARTY TRANSACTIONS continued
As at 31 December 2003 the Group was owed nil (2002: £1,009,388) by Batchworth Park Golf Club and owed
nil (2002: £966,663) to South Winchester Golf Club (1993), these balances were included in other debtors and
creditors respectively.
The above transactions were under normal commercial terms.
Crown Content was sold on 5 August 2003 for an initial consideration of A$2.5m to Sportsbrand Media Group
Pty Ltd. In addition Crown Sports is entitled to further consideration of an amount equal to 50% of the EBITDA
of Crown Content for each of the three years ending 30 June 2004, 2005 and 2006, subject to a maximum of
A$2.0m, and will be reduced by an amount equal to the net liabilities of Crown Content at 30 June 2003.
Sportsbrand Media Group Pty Ltd is wholly owned by the Chapman Discretionary Trust No 2, of which Jeff
Chapman is a beneficiary. Bennelong UK Ltd and Sports Assets (International) Ltd, which are also wholly owned
by the Chapman Discretionary Trust No 2 are both substantial shareholders in Crown Sports and Jeff Chapman is
a former Director of the company . The sale was approved by the shareholders at an Extraordinary General Meeting
held on 30 July 2003.
Fees of £22,000 were paid for the provision of a Non-Executive Director to LMS, a significant shareholder in
Crown Sports Plc. As at 31 December 2003 Crown Sports Plc owed £6,463 to LMS, this balance is included within
trade creditors.
Fees of £20,000 were paid for the provision of a Non-Executive Director to Bennelong UK Ltd, a related party as
described above. As at 31 December 2003 Crown Sports Plc owed £9,400 to Bennelong, this balance is included
within trade creditors.
Fees of £9,400 were paid to Kelly Consulting, a business owned by Maurice Kelly, a Non-Executive Director of
Crown Sports Plc, for the provision of consultancy services. No balance was outstanding at 31 December 2003.
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:
2003 2002
£’000 £’000
410,000,000 Ordinary shares of £0.05 each (2002: 410,000,000) 20,500 20,500
Allotted, called up and fully paid:
2003 2002
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.
Forty Seven 23.SHARE CAPITAL continued
Share Options
The number of shares for which employees, including Directors, hold options are as follows:
Period Price 2003 2002 
Number Number
Between 1 January 2001 and 9 December 2008 10p – 235,714
Between 1 January 2001 and 9 December 2008 20p – 10,000
Between 1 January 2002 and 9 December 2009 20p – 10,000
From the date of approval of the financial statements 34.5p – 27,500
for 2001 (30 April 2002) until two years thereafter 20p – 152,500
Between 1 January 2003 and 1 January 2010 31p – 500,000
From the date of approval of the financial statements 
for 2002 (15 April 2003) until two years thereafter 25p – 55,000
Between 29 December 2003 and 28 December 2010 30p – 1,000,000
Between 26 January 2004 and 25 January 2011 30p 250,000 750,000
Between 14 May 2004 and 13 May 2011 30p – 500,000
Between 14 November 2004 and 13 November 2011 16p 300,000 300,000
Between 18 June 2004 and 17 June 2011 30p 808,630 2,052,105
Between 20 July 2004 and 19 July 2011 30p – 184,500
Between 20 July 2004 and 19 July 2011 30p 145,990 279,405
Between 20 December 2004 and 19 December 2011 15p 490,000 755,000
Between 23 April 2001 and 23 April 2004 40p – 2,500,000
Between 30 April 2005 and 29 April 2012 12.5p 1,000,000 1,800,000
2,994,620 11,111,724 
Warrants
The number of shares for which there are outstanding warrants are as follows:
Period
Price 2003 2002
Number Number
From the date of publication of the financial 25p – 2,064,684
statements for 2002 (15 April 2003) until 
30 September 2003 36p – 3,923,747
– 5,988,431
NOTES TO THE FINANCIAL Forty Eight
STATEMENTS continued
Year Ended 31 December 2003
{ 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 (24,601)
Loss for the year – – (2,254)
At end of year 59,826 1,250 (26,855)
Group loss on foreign currency translation is £nil due to hedging the loss in translating the financial results of
Crown Content Pty Ltd with gains made on foreign currency translation within the profit and loss account for
2003 of Crown Sports Plc.
Company 
Share Capital Profit
premium redemption and loss
account reserve Account
£’000 £’000 £’000
At start of the year 59,826 1,250 (30,408)
Loss for the year – – (2,408)
At end of the year 59,826 1,250 (32,816)
25.RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING 
ACTIVITIES
2003 2002
£’000 £’000
Operating (loss)/profit 5 (6,169)
Goodwill – Amortisation 360 800
Goodwill Impairment 2,870 7,562
Loss on disposal of fixed assets 19 –
Depreciation 2,272 2,726
Impairment fixed asset book value – 1,000
Decrease in stocks 125 203
Decrease in debtors 142 914
(Decrease) in creditors (748) (1,749)
Net cash inflow from operating activities 5,045 5,287
Forty Nine 26.RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2003 2002
£’000 £’000
Decrease in cash in year (676) (2,224)
Net cash outflow from repayment of bank loans 17,928 14,200
Net cash outflow from reduction in finance leases 279 597
Change in net debt resulting from cash flows 17,531 12,573
Finance leases undertaken during the year – (485)
Finance leases that have left the group on disposal of discontinued businesses 184 –
Members advances – refundable joining fees received by golf clubs – 497
Members advances – movement on disposal of discontinued businesses 769 –
Loans that have left the group on disposal of discontinued businesses 4 –
Exchange loss on foreign currency loans (729) (63)
Movement in net debt for the year 17,759 12,522
Net debt at 1 January (35,729) (48,251)
Net debt at 31 December (17,970) (35,729)
27.ANALYSIS OF CHANGES IN NET DEBT
Disposal of
At 1 Jan Cash discontinued Non–cash At 31 Dec
2003 flows businesses changes 2003
£’000 £’000 £’000 £’000 £’000
Net cash:
Cash in hand and at bank 470 (305) (371) – (206)
Debt:
Members advances (769) – 769 – –
Bank loans (34,626) 17,928 4 (729) (17,423)
Finance leases (804) 279 184 – (341)
Net debt (35,729) 17,902 586 (729) (17,970)
NOTES TO THE FINANCIAL Fifty
STATEMENTS continued
Year Ended 31 December 2003 Fifty One
27.ANALYSIS OF CHANGES IN NET DEBT continued
Impact of disposals on cash flows
2003
£’000
Net proceeds from disposal of discontinued businesses 16,238
Net cash balances transferred (371)
Members advances transferred 769
Net loans transferred 4
Net finance leases transferred 184
Net book value of fixed assets transferred (16,336)
Net book value of goodwill and intangible assets transferred (2,316)
Other assets and liabilities transferred 1,817
Loss on disposal of discontinued businesses (11)
28.CAPITAL COMMITMENTS
Group
2003 2002
£’000 £’000
Capital expenditure contracted for but not provided for in the financial statements 291 250
29.POST BALANCE SHEET EVENTS
The Dragons Health Club in Leamington Spa was sold on 20 January 2004 for £1.3m to the Leamington Property
Partnership LLP . Studio Fitness Enterprises Ltd was sold to Law 2413 Ltd on 30 March 2004 for £1.15m. The net
proceeds of these sales were used to repay bank borrowings. CORPORATE INFORMATION Fifty Two
THE BOARD OF DIRECTORS
R F Pierce Chairman
M Grealey
M Kelly
S E H Turner
M Hardgrave (alternate to M Kelly)
EXECUTIVE COMMITTEE
M Grealey Chairman
D Jarvis
BOARD AUDIT COMMITTEE
R F Pierce Chairman
M Kelly
SEHTurner
BOARD REMUNERATION COMMITTEE
R F Pierce Chairman
M Kelly
SEHTurner
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
BANKERS
Barclays Bank Plc
HSBC Bank Plc
10 MAY
Annual General Meeting
30 JUNE 
Half Year End
SEPTEMBER
Interim Results Announcement
31 DECEMBER
Year End
MARCH 2005
Preliminary Results Announcement
2004 FINANCIAL CALENDAR Fifty Three LOCATIONS
DRAGONS HEALTH CLUBS
1 Bedford Club
81-83 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 Leeds Club
Haworth Lane, Yeadon
Leeds LS19 7EN
0113 239 1155
12 Lincoln Club
Witham Park House
Witham Park
Waterside South
Lincoln LN5 7JP
01522 568 755
13 Maidstone Club
Mill Meadow
St. Peter Street, Maidstone
Kent ME16 0SX
01622 681 987
14 Milton Keynes Club
Brickhill Street, Willen Lake
Milton Keynes
MK15 0DS 
01908 295 699
15 Muswell Hill Club
Hillfield Park, Muswell Hill
London N10 3PJ
020 8444 8212
16 Northwood Club
Chestnut Avenue
Northwood
Middlesex HA6 1HR
01923 840 214
17 Orpington Club
Sandy Lane, St Pauls Cray
Orpington Kent BR5 3HY
01689 874 884
18 Purley Club
33 Imperial Way, Purley Way
Croydon Surrey CR0 4RR
020 8686 8811
19 Rugby Club
Webb Ellis Road
Rugby
Warwickshire CV22 7AU
01788 540 523
20 Southport Club
Fairways, North Promenade
Southport
Merseyside PR8 1RY
01704 532 999
21 Western Avenue Club
Rowdell Road, Northolt
Middlesex UB5 6AG
020 8841 5611
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