More members puts Bannatyne Group in good health

The health club, spa and hotel business recorded pre-tax profits of £12.6m, a rise of 38 per cent, on turnover which rose marginally to £96m.

The group, founded and chaired by Duncan Bannatyne, has 60 health clubs, including sites in York, Wakefield, Barnsley and Rotherham, 31 spas and four hotels. Total UK membership is now around 170,000.

This year, it is investing £20m from retained earnings to open new spas and hotels and refit the health club chain with the latest equipment.

Mr Bannatyne told the Yorkshire Post the group has “more members than ever before”. But it was record low interest rates that drove the surge in profitability, he said.

“The big thing for us is we own most of our own freeholds with large mortgages – we saved considerable amounts of money on interest rates.”

Mr Bannatyne described current trading as “pretty buoyant”. He added: “There’s the issue of some people finding it hard to get as much borrowing as they require, but apart from that it’s quite buoyant.”

The star of TV’s Dragons’ Den star had some surprising words of encouragement for the coalition Government.

“I would not have said this a year ago – I backed Gordon Brown – but so far I’m happy.”

He praised the Budget for increasing incentives for investment in business and encouraging banks to lend. He also supported plans for enterprise zones, particularly for the North East, where his business is based.

The Bannatyne Group, headquarted in Darlington, has bank debt of £140m and is repaying £10m a year, said Mr Bannatyne.

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