Member Article

Profits surge at leisure operator the Bannatyne Group following investment drive

The leisure company run by Dragon’s Den entrepreneur Duncan Bannatyne, the Bannatyne Group, has reported a doubling of its pretax profits following a two year investment drive.

A sustained investment programme in 29 health clubs and spas, along with a range of acquisitions saw operating profit surge to £14.4m for the year to 31 December 2015, a 66% increase from the £8.6m profit in 2014.

Bannatyne credits its ‘affordable luxury positioning’ as one of the central reasons behind its success, with its focus on technology as well as swimming pools and spas in its leisure venues paying dividends last year.

The group also saw membership numbers increase by 14%, reaching just under 186,500, up from 163,000 in 2014, as it embarked upon a £7.5m refurbishment drive of 29 Bannatyne Health Clubs.

A further 37 health clubs are to due to be refurbished by the end of the year.

Justin Musgrove, Chief Executive Officer at the Bannatyne Group commented: “The success of our investment programme, providing the best equipment, state of the art technology and leveraging our expertise in Spas in an ever growing health and fitness market, has driven the Group’s performance during 2015.

“Having seen the positive returns of our plan, we will continue to drive our growth through investment in our remaining 35 health clubs and the roll out of 16 new Bannatyne Spas.

“Trading in 2016 to date shows good growth. In the first three months of the year, The Bannatyne Group added over 9,000 new members taking the total to just over 195,000.

“Looking forward, we see the mid and premium segment of the wellness sector as a significant ongoing opportunity for the Bannatyne Group as consolidation continues.”