Bannatyne in good shape as earnings beefed up

The Dragons’ Den star said the improved results were due to debt reduction, business development and productivity gains.

Bannatyne Fitness Ltd and Bannatyne Fitness 2 Ltd reported combined turnover of £92.4m in 2013, up from £91.7m in 2012, from the chain of 61 health clubs, which include four in Yorkshire.

The two companies reported pre-tax profits before exemptions and impairments of £11.5m, up from £8.8m in 2012.

Mr Bannatyne said a group of ground-lease transactions with M&G Investments and a loan from RBS enabled it to fully repay its borrowings from Irish Bank Resolution Corporation, formerly Anglo Irish Bank.

He added: “During 2013, paying a modest amount off the debt with Anglo-Irish bank had a real impact on the annual interest payments and we were able to achieve real productivity gains with very few redundancies.

“The result is a stronger business which has the resources to invest and grow in the future.

“At the beginning of this year the business went further and paid off its expensive and cumbersome Anglo-Irish loan.

“This move has already resulted in improved cash flow and liquidity, allowing the company to consider acquisitions in a consolidating market.”

He said membership has remained stable at around 170,000.