Bannatyne Group posts significant growth in profits

The Bannatyne Group, the Darlington-based national health club, spa and hotel operator, has revealed significant growth in both profits and turnover in the year to December 31st 2024. The group operates a health club in Luton.

The business, owned by serial entrepreneur and former BBC Dragons’ Den investor, Duncan Bannatyne OBE, has seen pre-tax profit growth of in excess of 40% to £14.4m and revenues increase by 7.7% to £149.7m.

The increase in profit is due to team working, sustained increased membership, dynamic pricing to offset increasing costs, efficiency gains through automation in the back office and continuous vigilant cost control

A significant number of investments have been made in the health clubs to reflect the increasing popularity of resistance and functional training, ensuring members have access to the latest advancements in fitness technology. The transformations underscore Bannatyne's commitment to providing members with an exceptional fitness environment, catering to a broad range of training styles, from strength and conditioning to functional workouts.

Padel courts, reported to be the world’s fastest growing sport, are also being built at Ingleby Barwick in Stockton and Chafford Hundred in Essex, with more expected.

Key figures from the accounts for year ending December 31st 2024:

2022 2023 2024

TURNOVER £127m £138.9m £149.7m

EBITDA £29.6m £38.3m £43.6m

PRE-TAX PROFIT £1m £10.1 £14.4m

MEMBERSHIP 199,046 215,659 219,500

Duncan Bannatyne OBE, Chairman and Chief Executive of the Bannatyne Group, said: “These results demonstrate what can be achieved when a great team works together to turn things around. We encountered our first loss during COVID and the post pandemic period has required real focus on core activities and delivering what members want at the right price. This has succeeded and we have returned to the level of profits that we were targeting five years ago.

Like all leisure businesses we are facing headwinds brought about by ill-considered government policies which are increasing our costs. However, the introduction of new classes, new technology and the significant rolling upgrade programme for our buildings and facilities will help us to maintain the loyalty of our members as we strive for sustainable growth in 2025.”

“The culture at the business has embraced a team mentality, staff are engaged in our success and people retention has improved by 8%. Like our members, we have become leaner and stronger and are concentrating on staying fit for the future.”