Addleisure Share Discussion Threads

[2020hindsight] 23/1/2007 12:31

The Movers and Shapers website ( ) now seems to be up and running (although the photos of the Stanmore club seem to be remarkably similar to that of the one in Hong Kong !)

No details on a schedule for further openings, although the corporate section of the Movers and Shapers site says:

"Movers & Shapers are looking for high street locations in major cities measuring approximately 600 – 1,000 square feet and opportunities, measuring 350 – 600 square feet, within existing retail stores. For further information please contact [e-mail]. For site opportunities in Hong King and China please contact [e-mail]"


I do like the way they are starting to market the linking of Fitbug and Mov&Shapers products. With the M&S scheme you get a Fitbug, and there are links to the Fitbug website as well.

[mangal] 22/1/2007 14:56

Not me; I'm in for the long term.
BTW, I hold the warrants.

[scotswhaehae] 22/1/2007 14:00

Nice try guys...lol

Here come the sellers...probably some of you lot...lol

[mangal] 19/1/2007 19:03

2020hindsight, my guess is that the new investors would have been provided with some additional information so as to give them the confidence to pay over the market price.

[2020hindsight] 19/1/2007 17:22

Hi Mangal. It's not the directors I'm interested in - since you're absolutely right that they know what's happening in the business.

Don't get me wrong, I'm very into this stock - but what is available in the public domain that would make other investors (ie those without privileged information) pay so much over the odds ? Do they know something that we don't ?

[mangal] 19/1/2007 16:58

Well, it looks like the Co was in need of working capital & that's what the 2 directors & the other investor/s provided. They, of course, paid over the market value because I expect they know what the Capital is to be used for &, I guess, are expecting returns that would dwarf the premium over the market price that they have paid.

[2020hindsight] 19/1/2007 16:18

Blimey. That's not a bad placing for ADE. OK, so the directors took 5mil out of the 8.3mil. Who took the rest, and more importantly what was it that convinced them that spending £100K on shares that far above current market price was a good investment ?

[74graham] 19/1/2007 15:33

it was trading at 1.63 for ages and they get a placing away at 3p and no dilution something big coming here i think never heard of a placing at 100% above the current price a must buy imho no advice intended

[mangal] 19/1/2007 15:31

BTW, 2 of the directors now own more than a third of the Co.

[mangal] 19/1/2007 15:28

Placing price of 3p & you can still buy them(@2.75p) below the placing price.
Hurry, it won't be long before they go past 3p!

[74graham] 19/1/2007 15:22

a placing at 3p lovely double the price it was today what do they know that we dont private investors yes

[double6] 19/1/2007 15:03

Directors little game ?

[crumppot] 02/1/2007 18:11

anybody know if they are doing OK.
I cant make head nor tail out of this stuff.
When are they going to make any money?

[2020hindsight] 14/11/2006 10:30

Results RNS :

ADDleisure PLC
14 November 2006

ADDleisure plc / Epic: ADE.L / Index: AIM / Sector: Leisure

14th November 2006

ADDLEISURE PLC ('ADDleisure' or 'the Company')

FINAL RESULTS

ADDleisure plc, the AIM traded company formed to develop products and services
in the health and leisure sectors, announces its final results for the year
ended 31 July 2006.

Chairman's Statement

I am delighted to report on the Company's progress towards fulfilling its
objective of becoming a leading investor in and provider of health and leisure
products and services.

During the period under review we have:-

• continued to devote time and energy into developing our existing
investments;
• established further key relationships with blue-chip companies;
• strengthened our team; and
• developed innovative concepts.

We also realised our investment in Liberation Fitness Systems making a healthy
return through the sale of our stake, which we feel underpins our ability to
identify investment opportunities.

Importantly, since the period end, we have launched new products and initiatives
through both our Fitbug and Digital Plantation subsidiaries and excitingly
opened our first Movers & Shapers centre in London's West End. A second London
site will open next month as will our first centre in Hong Kong. These
developments underpin our vision of leveraging our combined management
experience in the sector in order to develop market-leading products and
services to both the consumer and business sectors against a background of
continuing focus on the nation's health issues.

Financial Performance

Our three businesses remain in an early stage of development. Nevertheless, I am
pleased to report an increase in turnover to £0.9 million from £0.3 million in
the previous year. Operating losses have widened as we continue to build the
infrastructure to support our developing market opportunities.

The directors do not recommend the payment of a dividend.

Investments

Fitbug Limited ("Fitbug") (75% stake):

Fitbug, a developer of online personal health and well-being services, continues
to gain recognition within the health, leisure and corporate sectors as an
innovator of serious alternatives to conventional fitness offerings. Fitbug
combines interactive tracking devices and web technology to measure activity and
health indicators, provide feedback and motivate the user towards a healthier
lifestyle.

In June we signed a three year agreement with PruHealth, a leading innovative
private medical insurance company. PruHealth, a joint venture between Prudential
UK and Discovery of South Africa, offers a unique form of health insurance which
rewards members with lower private medical insurance premiums for taking care of
their health. For PruHealth customers, using Fitbug can lead to a reduction in
future premiums or cash back. PruHealth subsidise the purchase of the Fitbug
Members Pack and pay members' monthly subscription fees. Sales of PruHealth's
private medical insurance product remain very strong, with nearly 80,000
individuals now covered and we have been encouraged by initial adoption of the
Fitbug service.

During the year Fitbug has continued to invest in the development of a range of
alternative and complementary tracking devices to integrate with its web
services, including the "Fitbug Lab", developed in conjunction with a USA-based
leader in the design of networked, self-service technologies. The Fitbug Lab is
a self-service kiosk, which conducts discreet health checks quickly and
unobtrusively, gathering key health information from the user including weight,
blood pressure, body fat percentage, resting heart rate and Body Mass Index.
Data from the Fitbug Lab can be automatically uploaded to members' personal web
pages at fitbug.co.uk, enabling users to keep track of key health indicators
over time and allowing data transfer to health professionals. Fitbug Lab will be
marketed to corporate, retail and professional health sectors during 2007.

In November 2005, Fitbug granted a licence to Brunswick New Technologies'
('BNT'), a unit of Brunswick Corporation (NYSE: BC), to market Fitbug in the
USA. BNT moved aggressively to launch the programme by establishing the required
infrastructure to facilitate sales, marketing and distribution of Fitbug. In
April, Brunswick Corporation announced plans to sell BNT as it was not one of
its core business segments, resulting in Fitbug's contract with BNT being
terminated. With much of the infrastructure in place including a fully
developed USA website and interesting new business prospects, we are now looking
for a new partner in the USA to take advantage of the opportunities available.

Version 3 of fitbug.co.uk is currently under development and will go live in
January 2007 with a significantly enhanced user interface. Following a year of
intense development effort, the Company is looking to grow direct sales to
consumers in the coming year, capitalising on Fitbug's enhanced profile gained
through increased media exposure such as Channel Five's Diet Doctors series
whilst further penetrating the market for corporate employee health and
well-being services.

Digital Plantation Limited ("Digital") (50.2% stake):

Digital's intelligent management software, Ez-Book facilitates advanced booking
functionalities, utilising various mediums including the web and SMS messaging,
to improve the operating efficiency of customer-facing businesses. Ez-Book
allows operators to maximise profitability whilst improving customer service
through excellent customer relationship management.

During the year we continued to develop the Ez-Book product for the leisure
sector. We recently launched three versions of the software in response to
market demand to improve accessibility for businesses with differing levels of
operating complexity. Our three products are as follows:-

EZLITE - A functional site management system for the smaller business that
allows effective intelligent resource management of all staff and site areas
containing a booking and till system so as to maximise yield. Typically utilised
by personal training businesses and health and beauty salons.

EZTRACK - An intelligent hybrid of prospecting and CRM systems, encompassing all
booking functionalities within a member/client database, allowing effective cash
/subscription management, access control and retention capacities with a bespoke
data interrogation capacity. Developed for single site and small chain leisure
operators including spas and gyms.

TOTAL SOLUTIONS - A total site management system incorporating all aspects of
membership management, booking and payment systems, stock evaluation and
control, linked to a bespoke reporting tool that allows total yield and resource
management functionality. Total Solutions has been developed for multi-site
leisure venue operators and smaller operators looking for a sophisticated
system.

Ez-Book has been successfully marketed both in the UK and internationally to a
wide range of spas, health clubs and entertainment venues and during the year we
signed agreements with leading operators including Mitchells and Butlers plc,
which is using Ez-Book at its Hollywood Bowl venues. We are confident in our
ability to become a preferred supplier of software services within the sector
and have recently added to our sales team accordingly. Furthermore, we are
encouraged by the pipeline of new business opportunities for our products.

Liberation Fitness Systems Limited ("Liberation"):

As a result of the merger between Liberation, Power Plate International BV and
Power Plate North America Inc. in February 2006 we realised US$608,000 on the
sale of our 41.8% stake in Liberation representing a 240% profit on our original
investment. We continue to enjoy an excellent relationship with the newly formed
entity, which is enabling us to use Power Plate technology in our new Movers &
Shapers centres.

Movers and Shapers Ltd ("Movers & Shapers" - previously In Moments Limited) (90%
stake):

In July we acquired a 90% stake in In Moments Limited, now Movers and Shapers, a
company formed to develop and exploit new health and fitness related retail
opportunities.

Movers & Shapers is creating a groundbreaking retail concept for health and
fitness services through its new shape and vitality centres. Offering
personalised training to the public, these centres will offer comprehensive
fitness services featuring both cardio-vascular and resistance programmes,
combining our own Fitbug technology ("movement") and Power Plate equipment
("shape"). Ez-Book software is being utilised at each site to maximise operating
efficiency and facilitate excellent customer service. Centres will be
approximately 600 - 1,000 square feet and conveniently located on the high
street or within existing retail stores. Compared to conventional health club
settings, our Movers & Shapers centres offer an intimate and non-intimidating
environment. Requiring just two short sessions per week, the initiative offers a
fast track fitness programme to consumers focussed on body shape and fitness.
This new concept further highlights our commitment and ambition to focus on
consumers' increasing desire for more accessible health and fitness facilities.

We opened our first centre in the UK in Crawford Street, London, W1 last month,
and will open our next centre in Stanmore, North West London, shortly. Initial
feedback has been highly encouraging. Since the year end, we have entered into
a joint venture agreement with a local party in Hong Kong to gain access to the
Hong Kong/Chinese market. Our first centre in Central Hong Kong will open
shortly.

The Team

We were delighted to appoint Michael Warshaw as a consultant to the Company
following the acquisition of In Moments Limited. Michael's track record in
consumer-facing businesses, most recently through Molton Brown, speaks for
itself and his knowledge and focussed approach is proving invaluable across all
our divisions. In Moments was acquired for consideration of the issue of 11.25
million new ordinary shares in the Company at an issue price of 5 pence per
share and the grant of 3.5 million warrants to subscribe new ordinary shares,
exercisable at 5 pence per share. At the time of the acquisition In Moments had
net assets of £0.5 million made up wholly of cash.

Since the year end we have also appointed a new Chief Operating Officer in
Digital who is focussed on streamlining process and managing the project
delivery and support teams through the next stage of growth. Such a role will be
pivotal as we turn current leads into sales to ensure efficient and excellent
service delivery to our clients.

Prospects

The public's increasing awareness of body image, together with escalating
political and social awareness and debate around obesity, continues to drive the
demand for health and fitness products and services. With its exciting
portfolio of investments and highly experienced and innovative team, I believe
that your Company remains well positioned to take advantage of the significant
potential within the sector. Looking forward, we have a number of new
initiatives underway focussed towards the retail and corporate markets and we
are looking at different options to strengthen the balance sheet to take
advantage of such opportunities. I believe that, following an extended
development phase, the next 12 months will see increasing levels of activity
across all our divisions, and I look forward to updating shareholders again in
the near future.

Finally, I would once again like to sincerely thank all our staff for their
continued hard work and our shareholders for their ongoing support.


Allan Fisher
Chairman
14 November 2006


Consolidated profit and loss account
For the year ended 31 July 2006


Note Acquisitions and total 2005
2006
£'000 £'000

Turnover 852 285
Cost of sales (311) (147)
_______ _______

Gross profit 541 138

Administrative expenses (1,828) (1,000)
_______ _______

Operating loss (1,287) (862)
Share of operating loss in associated undertaking - (76)
Profit on disposal of associated undertaking 322 -
_______ _______

Loss on ordinary activities before interest (965) (938)

Interest payable (3) -
Interest receivable 15 30
_______ _______

Loss on ordinary activities before taxation (953) (908)

Taxation 12 -
_______ _______

Loss on ordinary activities after taxation (941) (908)
Minority interest 314 159
_______ _______

Loss sustained (627) (749)
_______ _______

Loss per share
Basic and fully diluted (pence) 2 (0.6) (0.8)
_______ _______



All recognised gains and losses for the current and prior year are included in
the profit and loss account.


Consolidated balance sheet at 31 July 2006


Note 2006 2006 2005 2005
£'000 £'000 £'000 £'000
Fixed assets
Intangible assets 771 738
Tangible assets 79 49
_______ _______

850 787
Investment in associate - 26
_______ _______

850 813
Current assets
Stocks 68 203
Debtors 221 161
Cash at bank and in hand 705 647
_______ _______

994 1,011
Creditors: amounts falling due
within one year (363) (223)
_______ _______
Net current assets 631 788
_______ _______

Total assets less current liabilities 1,481 1,601

Creditors: amounts falling due
after more than one year (260) (52)
_______ _______

1,221 1,549
_______ _______
Capital and reserves
Called up share capital 606 550
Share premium account 1,575 1,575
Merger reserve 757 250
Profit and loss account (1,377) (750)
_______ _______

Shareholders' funds (equity) 3 1,561 1,625
Minority interests (equity) (340) (76)
_______ _______

1,221 1,549
_______ _______




Consolidated cash flow statement for the year ended 31 July 2006


Note 2006 2006 2005 2005
£'000 £'000 £'000 £'000

Net cash outflow from operating 4 (888) (918)
activities

Returns on investments and

servicing of finance
Interest received 15 30
Interest paid (3) -
_______ _______
Net cash inflow from returns on 12 30

investments and servicing of finance


Taxation
Corporation tax credit received 12 -

Capital expenditure and

financial investment
Purchase of tangible fixed assets (30) (61)
Development costs (70) (222)
Proceeds from sales of fixed assets 5 -
_______ _______
Net cash outflow from capital expenditure (95) (283)
and financial investment

Acquisitions and disposals
Purchase of subsidiary undertakings - (607)
Cash acquired with subsidiaries 500 158
Acquisition of associate 348 (102)
_______ _______
Net cash inflow/(outflow) from
acquisitions and disposals 848 (551)
_______ _______

Cash outflow before financing (111) (1,722)

Financing
Issue of ordinary share capital - 2,000
Issue costs (15) (225)
Capital element of finance lease rental (16) (6)
payments
Loan 200 -
_______ _______
Cash inflow from financing 169 1,769
_______ _______

Increase in cash in the year 5,6 58 47
_______ _______


Notes

1 Accounting policies

The financial statements have been prepared under the historical cost convention
and are in accordance with applicable accounting standards. The principal
accounting policies are:

Basis of consolidation

The consolidated financial statements incorporate the results of ADDleisure plc
and all of its subsidiary and associated undertakings as at 31 July 2006 using
the acquisition or merger method of accounting as required. Where the
acquisition method is used, the results of subsidiary undertakings are included
from the date of acquisition.

Goodwill

Goodwill arising on an acquisition of a subsidiary undertaking, or associate
undertaking or joint venture is the difference between the fair value of the
consideration paid and the fair value of the assets and liabilities acquired.
It is capitalised and amortised through the profit and loss account over the
directors' estimate of its useful economic life which is 10 years. Impairment
tests on the carrying value of goodwill are undertaken:


• at the end of the first full financial year following acquisition;

• in other periods if events or changes in circumstances indicate that the
carrying value may not be recoverable.

Associates

An entity is treated as an associated undertaking where the Group has a
participating interest and exercises significant influence over its operating
and financial policy decisions.

In the Group accounts, interests in associated undertakings are accounted for
using the equity method of accounting. The consolidated profit and loss account
includes the Group's share of the operating results, interest, pre-tax results
and attributable taxation of such undertakings based on audited financial
statements. In the consolidated balance sheet, the interests in associated
undertakings are shown as the Group's share of the identifiable net assets
including any unamortised premium paid on acquisition.

Turnover

Turnover represents sales to external customers at the invoiced amount less
value added tax or local taxes on sales. Annual subscriptions for services are
recognised in equal monthly amounts. Some sales of software include a
maintenance element, which is spread over the duration of the maintenance
contract.

Depreciation

Depreciation is provided to write off the cost or valuation, less estimated
residual values, of all tangible fixed assets, except for investment properties
and freehold land evenly over their expected useful lives. It is calculated at
the following rate:

Fixtures, fittings and equipment - 33 1/3% per annum

Valuation of investments

Investments held as fixed assets are stated at cost less any provision for
impairment in value.

Stocks

Stocks are valued at the lower of cost and net realisable value.

Cost is based on the cost of purchase on a first in, first out basis. Net
realisable value is based on estimated selling price less additional costs to
completion and disposal.

Deferred taxation

Deferred tax balances are recognised in respect of all timing differences that
have originated but not reversed by the balance sheet date except that the
recognition of deferred tax assets is limited to the extent that the Group
anticipates making sufficient taxable profits in the future to absorb the
reversal of the underlying timing differences.

Deferred tax balances are not discounted.

Leased assets

Where assets are financed by leasing agreements that give rights approximating
to ownership (finance leases), the assets are treated as if they had been
purchased outright. The amount capitalised is the present value of the minimum
lease payments payable over the term of the lease. The corresponding leasing
commitments are shown as amounts payable to the lessor. Depreciation on the
relevant assets is charged to the profit and loss account.

Lease payments are analysed between capital and interest components. The
interest element of the payment is charged to the profit and loss account over
the period of the lease and is calculated so that it represents a constant
proportion of the balances of capital repayments outstanding. The capital
element reduces the amounts payable to the lessor.

All other leases are treated as operating leases. Their annual rentals are
charged to the profit and loss account on a straight line basis over the term of
the lease.

Share based employee remuneration

When shares and share options are awarded to employees a charge is made to the
profit and loss account based on the difference between the market value of the
Company's shares at the date of grant and the option exercise price in
accordance with UITF Abstract 17 (Revised 2006) 'Employee Share Schemes'. The
credit entry for this charge is taken to the profit and loss reserve and
reported in the reconciliation of movements in shareholders' funds.

Research and development

Expenditure on pure and applied research is charged to the profit and loss
account in the year in which it is incurred.

Development costs are charged to the profit and loss account in the year of
expenditure, unless individual projects satisfy all of the following criteria:

• the project is clearly defined and related expenditure is separately
identifiable;

• the project is technically feasible and commercially viable;

• current and future costs are expected to be exceeded by future sales; and

• adequate resources exist for the project to be completed.

In such circumstances the costs are carried forward and amortised over a period
not exceeding three years commencing in the year the Group starts to benefit
from the expenditure.

Foreign currency

Foreign currency transactions of individual companies are translated at the
rates ruling when they occurred. Foreign currency monetary assets and
liabilities are translated at the rate of exchange ruling at the balance sheet
date. Any differences are taken to the profit and loss account.

The results of overseas operations are translated at the average rates of
exchange during the year and the balance sheet translated into sterling at the
rate of exchange ruling on the balance sheet date. Exchange differences which
arise from translation of the opening net assets and results of foreign
subsidiary undertakings are taken to reserves.

All other differences are taken to the profit and loss account with the
exception of differences on foreign currency borrowings used to finance or
provide a hedge against foreign equity investments, which are taken directly to
reserves to the extent of the exchange difference arising on the net investment
in these enterprises. Tax charges or credits that are directly and solely
attributable to such exchange differences are also taken to reserves.

Financial instruments

Financial instruments are measured initially and subsequently at cost.


2 Earnings per share

Earnings per ordinary share have been calculated using the weighted average
number of shares in issue during the relevant financial periods. The weighted
average number of equity shares in issue, is 110,032,822 (2005 - 93,095,890) and
the loss, being loss after tax and minority interests £627,000, (2005 - loss
£749,000). The effect of all options and warrants outstanding as at 31 July
2006 is anti-dilutive.


3 Reconciliation of movements in shareholders' funds

2006 2005
£'000 £'000

Loss for the year (627) (749)
New share capital subscribed 563 1,775
_______ _______

Net (decrease)/increase in shareholders' funds (64) 1,026
Opening shareholders' funds 1,625 599
_______ _______

Closing shareholders' funds 1,561 1,625
_______ _______






4 Reconciliation of operating loss to net cash outflow from operating
activities

2006 2005
£'000 £'000

Operating loss (1,287) (862)
Amortisation - goodwill 51 18
- development costs 114 37
Depreciation 31 16
Movement in:
stocks 135 (190)
debtors (60) (75)
creditors 128 138
_______ _______

Net cash outflow from operating activities (888) (918)
_______ _______







5 Reconciliation of net cash inflow to movement in net funds

2006 2005
£'000 £'000

Increase in cash in the year 58 47

Cash outflow from changes in funds (184) 6
_______ _______

Movement in net funds resulting from cash flows (126) 53
Inception of finance leases (36) (39)
Acquisition of loans in subsidiary - (32)
_______ _______

Movement in net funds (162) (18)
Opening net funds 582 600
______ _______

Closing net funds 420 582
_______ _______





6 Analysis of net funds


Other
At Cash non-cash At 31 July
1 August 2005 flow items 2006
£'000 £'000 £'000 £'000

Cash at bank and in hand 647 58 - 705

Finance leases (33) 16 (36) (53)
Loans in subsidiary (32) - - (32)
Other loans - (200) - (200)
_______ _______ _______ _______

Total 582 (126) (36) 420
_______ _______ _______ _______



* * ENDS * *

Contacts:

Isabel Crossley St. Brides Media Tel: [phone]

Ben Margolis ADDleisure plc Tel: [phone]


This information is provided by RNS
The company news service from the London Stock Exchange

[charterhouse3] 26/7/2006 12:58

Michael Warshaw (of Molton Brown fame and fortune) is buying in at 5p a share. With the market price currently at 2.5p offered is there a catch that I can't see at the moment or does buying the shares at half the price of what a proven entrepreneur is paying seem like a very good deal ?

[2020hindsight] 17/7/2006 10:23

Anyone else having this problem ?

Late in June I bought some shares online for my Barclays Stockbrokers ISA account, which the system let me do.

I've just received a letter saying that actually they do not qualify for an ISA since AIM shares need to be listed on another recognised exchange - and the "Third Market Segment" of the Berlin Stock Exchange is not recognised.

Barclays gave me various options of selling/transferring, all of which would be commission & charge free. Just to clarify, I rang Barclays to ensure that I wouldn't lose out (as these are a long term buy because the bid/offer spread is high). Barclays stated no, they would be sold at the prevailing rate and thus I would lose out.

The guy on the phone said that other brokers have been affected and they are in touch with Her Maj's Revenue and Customs. When I asked, however, he did confirm that the problem was with either Barclays or HMRC (which I take to mean it isn't my fault). Usually the online systems prevent you from buying non-eligible shares for an ISA - but on this occasion they didn't....

[2020hindsight] 05/6/2006 11:16

Excellent news ......



RNS Number:0144E ADDleisure PLC 05 June 2006


ADDleisure Plc / Ticker: ADE.L / Index: AIM / Sector: Leisure


5 June 2006


ADDleisure Plc ('ADDleisure' or 'the Company')
Agreement with Health Insurer PruHealth


ADDleisure, the AIM traded company formed to develop products and services in the health and leisure sectors, has signed a three year agreement, through its 75% owned subsidiary Fitbug Limited ('Fitbug'), with leading innovative private medical insurance company PruHealth. Under the terms of the Agreement, Fitbug will supply memberships of fitbug.co.uk, "your online personal health and well-being coach", to PruHealth policy holders.

PruHealth, a joint venture between Prudential UK and leading health insurance provider, Discovery, in South Africa, offers a unique form of health insurance, which recognises and rewards members with lower healthcare insurance premiums for taking care of their health. If members take part in any of the healthy activities offered by its health and well-being partners, which span a range of things including physical activity, screening, nutrition and non-smoking, they earn 'Vitality Points'. At the end of the year, the greater the number of Vitality Points earned the higher the Vitality status, the greater the potential reduction in future premiums or cash back could be. PruHealth currently has in excess of 50,000 members and is continuing to grow in the individual and corporate markets.

fitbug.co.uk is an online personal health and well-being coach, which combines a unique interactive tracking device ('The Bug') and web technology to measure activity, provide feedback and motivate users towards a healthier lifestyle. With fitbug.co.uk, PruHealth members could be able to earn Vitality points by simply using their feet. Walking to work, playing golf, walking the dog, hiking, rambling, in fact anything that keeps them active could reduce members premiums or contribute towards their cash back.

The agreement with PruHealth opens up a new market area for Fitbug and the Company, that being the insurance sector. Under the deal, PruHealth will subsidise the purchase of the Fitbug Members Pack and will pay members' monthly subscription fee.

The introduction of Fitbug offers PruHealth members an innovative health alternative to the gym, which anybody could benefit from, no matter age, shape, fitness level or geographic location.

Fitbug Managing Director, Paul Landau commented: "This is a ground breaking deal. For the first time, health insurance subscribers will be able to benefit from the potential of reduced premiums by simply keeping active and staying off their sofas. Working with PruHealth presents a significant opportunity for Fitbug and reflects a key component of our B2B strategy which is to work with strategic channel partners. Fitbug offers PruHealth a price competitive and effective way of motivating their members to lead an active, healthy lifestyle, monitoring their progress and rewarding them accordingly. "

Nick Read, Director of Business Development for PruHealth commented: " Introducing Fitbug to our Vitality scheme marks an important development for PruHealth. Rewarding members for taking regular exercise is at the heart of our private medical insurance product. Fitbug will now enable us to extend our reach beyond the gym floor, providing individuals with their own weekly activity targets that they can achieve as part of their everyday life. Members could then be rewarded with lower premiums for maintaining a healthy lifestyle, however and wherever they achieve it."

Fitbug is currently being used by both individuals and blue-chip corporates including Channel 4, Department of Health, o2 plc and Ford Motor Company's EDAP programme, as part of their employee well-being programmes.

[dell314] 10/4/2006 20:03

FWIW, I had a quick squint at the numbers, when they came out, and thought they were garbage.

How can losing £400k on a turnover of £500k be "not that bad"??

Why have admin costs ballooned up to £800k?

By now, they'd be down to only around £200k cash remaining, if it wasn't for the aditional cash from the forced disposal of Liberation Fitness.

Not very impressive at first glance but I need to have a look in more detail.....

Rgds
dell

All IMHO, DYOR etc.