2017 has been another good year for leisure and fitness operator Bannatyne with turnover for the year to 31 December 2017 increasing to £117.6m (2016: £112.2m) and profit before tax before exceptional items increased 57% to £14.3m (2016: £9.2m).
Combining quality high tech modern gyms, spas and state of the art technology including MyZone heart rate monitors, access and cashless wristbands, flexible membership options together with a well-financed efficient operating model and prudent expansion, has led to outperformance and record profits.
Supported by a strong balance sheet and very strong cash generation (up £5m to £30m) the Group acquired 4 further gyms in Weybridge, Stratford upon Avon, Humberston and Belfast, the first foray into Ireland, taking the total number of gyms in the estate to 71.
Over the past two years the company has invested over £28m, modernising premises, taking advantage of technological development and expanding profitable spa operations by 9 to take the total to 46.
Significant further growth is anticipated in 2018 with the benefits of the completion of the modernisation and investment programme in 2017 across the Group continuing to attract and grow the membership. The acquisitions made over the past two years will also drive growth and further acquisitions will be sought across a fragmented marketplace.
Alan Jackson, Chairman said:
“Strategically, the Company has carved out its own sub sector playing to today’s trends. The results for 2017 are testimony to the Company’s ability to deliver a truly excellent and modern proposition to its members. Led by a talented management and a totally dedicated team, Bannatyne has an efficient and very profitable model that will continue to prosper.”
Justin Musgrove, Chief Executive Officer said:
“We are delighted with the 2017 results – 57% increase in profits year on year after a 15% uplift in 2016 and very strong cash generation is clear demonstration that our strategy is delivering and that the investment over the past two years is driving strong returns.
Our aspirational proposition with investment in state of the art gyms, Treatment Spas, technological developments is robust, differentiated and sustainable providing indulgence with lifestyle balance that rewards the group with ever increasing membership and spa guest visits.
The Bannatyne Group is seeking expand further through both organic growth as our current reinvested estate potential is realised and by careful acquisition. We are excited about prospects for 2018 which has started well with over 19,000 new members, another record, signed up to date”.