Bannatyne Group

The Bannatyne Group, the Darlington-based national health club and hotel operator, has seen profits restored in the first set of financial results published since the end of the COVID pandemic.

The business, owned by serial entrepreneur and former BBC Dragons’ Den investor, Duncan Bannatyne OBE, has seen its EBITDA profit more than double to £29.6m and a pre-tax loss of £12.9m turn into a pre-tax profit of £1m in the year ending December 31^st 2022.

The company has focused on growing membership and paying down COVID era debt, with an expectation that all COVID loans will be paid off in the first half of next year. During COVID gyms and health clubs were closed for longer than all other businesses and losses and additional borrowing affected all operators in the sector.

Key figures from the accounts for year ending December 31^st 2022:

2021 2022

TURNOVER £75.5m £127m

EBITDA £14.8m £29.6m

PRE-TAX PROFIT -£12.9m £1m

MEMBERSHIP 179,737 199,046 (210,000 August 2023)

Duncan Bannatyne OBE, Chairman of the Bannatyne Group, said: “The business has turned the corner following the difficult COVID period. During 2022 we turned a loss into a profit, more than doubling EBITDA to reach £29.6m. Turnover was up from £75m to £127m and membership grew by 10.7% in this financial period. It currently stands at 210,000 with a sector leading retention rate of more than 95%. We are also on track to pay off all our COVID loans next year.”

He added: “The performance is especially impressive, as over recent years the company experienced high impact increases in minimum wage, energy, and interest rates, adding £11m to our planned costs. The hard work of our leadership team puts the business in a positive position for further growth in the years ahead.”

NB: The accounts were submitted to Companies House on 27/9/23.

ENDS

Notes to editors:

The Bannatyne Group operates 69 clubs, 46 spas and 3 hotels. It is owned by Duncan Bannatyne OBE, who is also known for his appearances as a business angel on the BBC programme Dragons’ Den. The health clubs have around 200,000 members.

Bannatyne health clubs can be found in towns and cities throughout the UK, with a particularly strong presence near residential areas of large towns. They place a strong emphasis on wellbeing and exercise forming a central part of living a healthy lifestyle.