"The business is in great shape, turnover is at a record high and profits are strong and sustainable. "
Duncan Bannatyne OBE
Financial results for the 12 months to 31 December 2018
2018 was another good year for Bannatyne Group. It has delivered a strong performance building on membership growth of recent years. The Company is well positioned in the affordable premium segment of the UK Health and Fitness market, with its clubs featuring spas and swimming pools.
Bannatyne Group operates a nationwide portfolio of 72 health clubs, 47 Spas and 4 hotels. It is announcing financial results for the year to 31 December 2018, and a key development in the management of the business:
Ø Turnover has grown by 8.5% up from £117.6m in year ending December 2017 to £127.5m in year ending December 2018.
Ø EBITDA is up from £31.3m (2017) to £32.4m (2018), with
Ø Pre-tax profit is up from £14.3m (2017) to £14.6m (2018).
Ø Duncan Bannatyne OBE, to return to the frontline in the business, changing his role to executive chairman following the decision of the existing CEO to embark on a new career challenge, taking up a new post in the Middle East.
Ø Majority shareholder dividend: £9m
Ø A successful roll out of new app-based technology in the health clubs enabling all members to actively monitor their fitness using personal electronic wristbands.
Ø Embarking on the final stage of a three year £50m investment programme re-equipping and refurbishing sites around the UK.
The exceptional results have been delivered by combining quality contemporary gyms, spas and state of the art technology, including access and cashless wristbands, with a well-financed efficient operating model and building on prudent expansion. The year to December 2018 has been the best year in the company’s history in terms of both turnover and profit.
In the trading period covered by these results, 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 3000 people.
In addition to publishing its annual results, the company has announced a significant change in the executive leadership of the business. The CEO Justin Musgrove, who has successfully run the Bannatyne Group for five years, has accepted a new role in a business based in the Middle East. He is parting on good terms and leaves the business in excellent health. His role will be taken by Duncan Bannatyne OBE, who will become executive chairman. Duncan founded the business in 1997 and returns to the front line at a time of great opportunity, with the business in an excellent position to maintain steady and sustainable growth.
Commenting on the results Duncan Bannatyne OBE, said: “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 as we continue to provide the sector-leading facilities and high-quality services our members and customers expect and deserve.
“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.”