Annual results for the companies behind the Bannatyne Health Club chain have shown a sharp rise in pre-tax profits
The annual results for the companies behind the Bannatyne Health Club chain have shown a sharp rise in pre-tax profits - up by almost a third.
And boss Duncan Bannatyne says it’s down to growing internet bookings and the introduction of three different health club levels, which have boosted members and activity.
Pre-tax profits before exemptions and impairments for the Darlington-based business were up 30%, from £8.8m to £11.5m.
Turnover for the chain was up from £91.7m to £92.4m, while operating profit before exemptions and impairments was up from £13.3m to £14.7m.
The results refer to the combined results of the two companies involved in the operation of Bannatyne Health Clubs - Bannatyne Fitness Ltd and Bannatyne Fitness 2 Ltd.
Membership across the chain stands at around 170,000.
And the company says it is able to consider future acquisitions again, thanks to a strengthened financial position.
Last month the Bannatyne Group struck an innovative £92m deal which freed the firm of its bank debt with the failed Anglo Irish Bank. It reached the agreement with M&G Investments for the sale and leaseback of the ground leases of 39 Bannatyne’s Health Clubs.
The group said the deal, which released it from millions of pounds of bank debt, provides a strong platform for future development and continuing profits.
In the results announced yesterday, figures showed a growth in online sales of 98% for the first two months of 2014, compared to the same period in 2013, was also recorded in the results.
There was also a growth in new membership of 14% for the first two months of 2014, compared to the same period in 2013.
Mr Bannatyne OBE, founder and chairman of Bannatyne Fitness, said: “These fantastic results vindicate our strategy to reduce debt and focus on new ways to deliver exceptional service to members.
“Early post-balance sheet indicators show that the use of internet booking and the introduction of three different levels of health club have had a significant effect on activity and membership growth.
“During 2013, paying a modest amount off the debt with Anglo-Irish bank had a real impact on the annual interest payments and we were able to achieve real productivity gains with very few redundancies.
“The result is a stronger business which has the resources to invest and grow in the future.”
He added: “At the beginning of this year the business went further and paid off its expensive and cumbersome Anglo-Irish loan.
“This move has already resulted in improved cash flow and liquidity, allowing the company to consider acquisitions in a consolidating market.”
Bannatyne Fitness is the UK’s largest independent health club operator, with 59 sites across the UK - including Ingleby Barwick and Darlington.
It employs around 5,000 people.
No comments:
Post a Comment