Duncan Bannatyne eyes clubs expansion

DUNCAN Bannatyne said improving finances at his health club empire meant acquisitions could soon be back on the agenda, writes Perry Gourley.

Turnover at Bannatyne Fitness rose from £91.7 million to £92.4m, with pre-tax profits before exemptions and impairments up 30 per cent from £8.8m to £11.5m.

The clubs have also seen a growth in new membership of 14 per cent for the first two months of 2014 compared to the same period in 2013.

The company, which has around 170,000 members, said the results reflected debt reduction and improved productivity,

It recently announced a ground lease deal with M&G Investments, which repaid most of its bank borrowings from the Irish Bank Resolution Corporation. Bannatyne said the results “vindicate our strategy to reduce debt and focus on new ways to deliver exceptional service to members”.