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Bannatyne has bounced back from the pandemic

The Bannatyne Group says it has recovered from the pandemic
Profits up by 30 per cent
More classes and strength training have attracted new members
App-based technology is improving the club experience
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University of Brighton
£23,144 to £25,138pa
location: Brighton, East Sussex, United Kingdom
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The Bannatyne Group says it has officially bounced back from the pandemic, with both turnover and profits restored to pre-2020 levels in 2023, according to its year-end results.

Owned by former BBC Dragon’s Den investor, Duncan Bannatyne, the Darlington-based national health club and hotel operator, also finished paying off its Coronavirus Business Interruption Loans early and last year grew profits by 30 per cent, to £38m.

Revenues increased by 9 per cent to £139m and EBITDA was up to £38.9m, compared to £29.6m in 2022.

Memberships also increased to 215,659 from 199,046.

Duncan Bannatyne, chair and CEO of The Bannatyne Group, told HCM the company has been focusing on core activities and delivering what customers want at the right price.

“The turnaround has only been possible because of the hard work of our staff," he said. "They've helped increase membership, as we use app-based technology to offer people new experiences in our health clubs.

“We've introduced new classes, such as our own Pulse offering, the equipment has been refreshed with fewer cardio machines and more body toning and our price increases have been modest, protecting members from the worst elements of inflation,” he said.

“Realising numerous marginal gains and focussing on customer experience is a well-trodden path to business success and I'm pleased it has worked after the shock of the pandemic and the recent economic turbulence.”

The Bannatyne Group operates 69 clubs, 46 spas and three hotels. The offering comprises gyms, classes, swimming pools, saunas and steamrooms, as well as café and lounge areas. Off-peak membership is £40.99 and full access costs £50.99 a month, placing it at the heart of the mid-market.

The company also entered the low-cost market last year, with a new concept, Just Fitness by Bannatyne. The first site was launched at the end of last year in Kent, UK, comprising 108sq m of functional workout and cross-training space, as well as a central workout zone called The Pitch. It also offers Les Mills classes in two studios and a recovery room.

Bannatyne told HCM Just Fitness will be selectively developed where a budget concept is required. Membership costs from £22.99 a month to join.

Read HCM's interview with Bannatyne's Ken Campling here.

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The Bannatyne Group says it has officially bounced back from the pandemic, with both turnover and profits restored to pre-2020 levels in 2023, according to its year-end results.