Best year for leisure club
Bannatyne back on executive treadmill with £9m divi
Duncan Bannatyne: ‘thrilled to be back’
Former television ‘dragon’ Duncan Bannatyne enjoyed a £9 million dividend from the best year in his leisure company’s history in terms of both turnover and profit.
Bannatyne Group, which operates 72 health clubs – 11 in Scotland – 47 spas and four hotels said it is well positioned in the affordable premium segment of the UK Health and Fitness market.
Mr Bannatyne, who founded the business in 1997, returns to the frontline, changing his role to executive chairman following the decision of the existing CEO Justin Musgrove to take up a post in the Middle East.
Turnover grew by 8.5% in the year ending December 2018 to £127.5m (2017: £117.6m). Pre-tax profit rose marginally to £14.6m (2017: £14.3m).
The firm is embarking on the final stage of a three year £50m investment programme re-equipping and refurbishing sites around the UK.
In the trading period, the company has absorbed costs associated with national and living wage increases; delivered a strong and respected training programme tailored to the many individual skills required in the business and now employs in excess of 3,000 people.
Mr Bannatynesaid: “The business is in great shape, turnover is at a record high and profits are strong and sustainable. Our members are enjoying facilities, which have been enhanced with significant investments in new equipment, new technology and a wide range of new classes and services delivered by our exceptional team.
“We now expect this long period of investment to result in a business that will maintain further growth and profits.
“I am thrilled to be back at the frontline, leading the business at a time of great opportunity and excitement in the UK economy. Our CEO, Justin Musgrove, has done a great job in the last five years and we wish him well as he embarks on a new career in the Middle East. He leaves the business in fine fettle and I will enjoy running it again in a more ‘hands-on’ role.”
Bannatyne Group operates health clubs in Aberdeen, Ayr, Dunfermline, Edinburgh, Newcraighall, Falkirk, Livingston, Perth, Stepps, Dumfries and Inverness