Bannatyne hints at possible acquisitions following £11.5 million profits
Duncan Bannatyne’s chain of health clubs has posted pre-tax profits of £11.5 million in the financial year to December 2013.
The Dragons’ Den entrepreneur, who operates 59 health clubs around the country, says the results vindicate the decision to pursue a leaseback deal on the firm’s properties, and pay down debts with the former Anglo-Irish bank.
During the period Bannatyne Health Club grew turnover from £91.7 million to £92.4 million as membership numbers remained stable at around 170,000.
Mr Bannatyne said: “Early post-balance sheet indicators show that the use of internet booking and the introduction of three different levels of health club have had a significant effect on activity and membership growth. “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.”