Record turnover for Darlington's Bannatyne Group with profits up 57 per cent
Bannatyne Group has reported a record turnover with profits for its headquarters and five North East facilities.
Bannatyne operates a portfolio of affordable health clubs nationwide comprising 71 gyms, 46 spas and four hotels. Today (March 12), it has announced its results for the year to December 31, 2017.
Bannatyne delivered a strong performance, building again on the operational initiatives and investment of the past two years. The company is well positioned in the ‘affordable premium’ segment of the UK health and fitness market.
Alan Jackson, chairman, 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 dedicated team, Bannatyne has an efficient and very profitable model that will continue to prosper.”
Combining modern gyms, spas and technology, including MyZone heart rate monitors, access and cashless wristbands, flexible membership options together with a well-financed operating model and prudent expansion, has led to outperformance and record profits.
Turnover for the year to December 31, 2017 increased to £117.6m and profit before tax before exceptional items increased 57 per cent to £14.3m. The underlying improvement in profitability is a result of an increase in membership of 7.4 per cent to 211,715.
Supported by a strong balance sheet and very strong cash generation - up from £5m to £30m - the group acquired four further gyms in Weybridge, Stratford upon Avon, Humberston and Belfast, its first foray into Ireland.
This has taken the total number of gyms in the estate to 71.
Around 99 per cent of Bannatyne’s gyms have now been refurbished. Over the past two years, the company has invested over £28m, modernising its premises and expanding its spa operations by nine to take the total to 46.
Significant further growth is anticipated in 2018 with the benefits of the completion of the modernisation and investment programme in 2017 across the group continuing to attract and grow its membership.
The acquisitions made over the past two years will also drive growth and further acquisitions will be sought across a fragmented marketplace.
Justin Musgrove, chief executive officer, 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.
“The Bannatyne Group is seeking 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.”