FITNESS chain The Bannatyne Group said a successful investment programme has delivered a record turnover and a 57 per cent increase in profits.
Bannatyne, which has four Yorkshire gyms in Barnsley, Rotherham, Wakefield and York, plus another in Grimsby, operates a portfolio of health clubs nationwide comprising 71 gyms, 46 spas and four hotels.
The firm, which said it has repositioned itself in the affordable premium section of the market by offering clubs with spas and swimming pools, posted a turnover of £117.6m, up from £112.2m the year before, and profits of £14.3m, up from £9.2m, for 2017.
It acquired four new sites, in Weybridge, Stratford upon Avon, Humberston and Belfast, during the year. It spent £14m on modernising its health clubs as part of a £28m programme, plus £2.4m maintaining them.
The group, which was founded 20 years ago by former Dragons Den star Duncan Bannatyne, invested £2.6m in opening nine spas, taking the total number to 46. Spa revenue grew over 13 per cent in 2017 to £16.5m.
The group employs over 3,000 people, up 10 per cent on 2016. Membership grew by 7.4 per cent to 211,715.
Chairman Alan Jackson said: “Strategically, the company has carved out its own sub sector playing to today’s trends. The results for 2017 are testimony to the company’s ability to deliver a truly excellent and modern proposition to its members.
“Led by a talented management and a totally dedicated team, Bannatyne has an efficient and very profitable model that will continue to prosper.”
Chief executive Justin Musgrove added: “We are delighted with the 2017 results – 57 per cent increase in profits year on year after a 15 per cent uplift in 2016 and very strong cash generation is clear demonstration that our strategy is delivering and that the investment over the past two years is driving strong returns.”
He added: “The Bannatyne Group is seeking to expand further through both organic growth as our current reinvested estate potential is realised and by careful acquisition. We are excited about prospects for 2018 which has started well with over 19,000 new members, another record, signed up to date.”