Bannatyne group shows healthy rise in profit, up by 138%

DUNCAN Bannatyne's group of companies, which includes the UK's largest independent health club operator Bannatyne Fitness, has announced a pre-tax profit of almost £13.76 million for 2006.

The results, which the group's chairman said were "better than expected", represented 138 per cent growth on last year. Bannatyne told The Scotsman that the group was "advancing on all fronts" and further acquisitions were currently being finalised. He said his Bannatyne Fitness chain accounted for a major chunk of the profit growth, with an individual 131 per cent rise.

That increase followed the 90m acquisition of 24 LivingWell health clubs acquired from Hilton International in August 2006. The deal, the largest in the company's history, increased Bannatyne's portfolio of health clubs to 61 across England, Scotland and Wales, and established it as Scotland's largest operator with 12 clubs.

Meanwhile, the group's boutique hotel division, Bannatyne Hotels, saw profits increase 189 per cent on 2005's results, largely through its boutique hotel in Darlington and Bar Bannatyne in Newcastle-upon-Tyne.

Further growth for Bannatyne Hotels is predicted in 2007 following the opening of the first of Bannatyne's "new concept" hotels in Durham City in February.

A second Hotel Bannatyne is planned for Norwich in the next few months with a further two scheduled for completion by the end of the year.

Aimed at short-stay business clientele and tourists, the Bannatyne Hotel concept enables guests who book in advance via the internet to obtain low prices. The concept reverses the industry practice of giving discounts to late bookers, by offering the biggest discounts to those who book furthest ahead.

The year has also seen the launch of Bannatyne Housing, whose first residential housing development is in Dumfries, which began construction in 2006.

Bannatyne said yesterday: "With the development of our new-concept hotels and the soon-to-be completed housing project in Scotland, these are exciting times for the group."

Bannatyne also revealed for the first time that he believed that it was his TV fame as a panellist on the popular show Dragon's Den that made the Hilton deal possible.

"The TV recognition factor doesn't make a difference to the nuts and bolts of the business. I have no doubt Hilton would not have taken us seriously if they hadn't known about me from TV," he added.

Bannatyne also hinted that the forthcoming series of Dragon's Den, which is currently being filmed, but which will be aired in the autumn, might be his last: "We will see how we go. I'm still enjoying it, but I don't know if I want to carry on after the fifth series. I will decide that when it's finished."