The Bannatyne Group has reported strong turnover and profit growth in annual results posted to Companies House for the year ending December 31 2016.
With 67 sites across the UK under the Bannatyne Health Club brand – including two on Teesside, Ingleby Barwick and Coulby Newham – the Bannatyne Group’s turnover jumped from £101m to £112.2m, with pre-tax profits climbing from £7.7m to £11.6m.
The group, which now has more than 200,000 members and employs in the region of 3,000 people, also operates 37 spas, with plans to open six more in 2017, and five hotels.
During the year the Bannatyne Group acquired further gyms in Orpington and Norwich which enhance the existing portfolio.
Both businesses are benefiting from the Bannatyne head office support systems and growth in these businesses is projected in future years.
The company also continued a significant investment in its health clubs, which will conclude in 2017.
Turnover for the year to December 2016 increased to £112.2m (up from £101.0m) and profit before tax and before exceptional costs increased to £11.6m (from £7.7m).
The underlying improvement in profitability was a result of an increase in both spa and membership revenue and a focus on operational efficiency. Interim dividends of £11.5m were declared during the year.
The group’s chief executive Justin Musgrove (pictured) said: “This demonstrates another successful year for the group – turnover, profits and dividends payments to shareholders have all increased.
“In addition the renewed strength of the business has enabled it to draw on resources for future investment and growth.
“Health Club membership has now grown to more than 200,000, supported by the health club investment programme which has seen the best in fitness equipment and innovative technology including MyZone and the Bannatyne Fitness app, installed across our health clubs.
“The company has ambitious plans for the future with new Spa facilities opening and the culmination of the gym refurbishments.
“The Bannatyne Group has secured a solid position in the health club market with resilient membership numbers and a membership proposition that is attracting people to move up from budget, low cost alternatives.
“Our other businesses are growing too. The hotels are performing well and we are committed to ongoing investment to maintain the high quality of the hotel portfolio.
“We anticipate further development in the company’s performance going forward.”