Whitbread quashes demerger speculation

Whitbread has dismissed reports that it is considering demerging its David Lloyd Leisure chain of fitness clubs.

Newspaper reports over the weekend had suggested the leisure giant was looking at the feasibility of spinning off the 56 clubs.

Chairman Sir John Banham was quoted in the Mail on Sunday as saying: "There are no obvious synergies between David Lloyd and the rest of the group. But it is a great business and we will continue to invest in it until we feel that it would be more sensible to float it off."

But in a statement today to the London Stock Exchange, Sir John stressed Whitbread had "no plans" to sell or otherwise dispose of the business or its interest in it.

"It is an excellent business and one that we continue to invest in," he added.

by Nic Paton

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