Following the lean years during and just after the pandemic when gyms and health clubs were closed, The Bannatyne Group with clubs all over the UK including Edinburgh has reported a return to profit.
With a turnover of £127 million last year the core profit is stated as £29.6 million which has turned a pre-tax loss of £12.9 million into a pre-tax profit of £1 million.
The company borrowed during the pandemic and confirms it hopes to repay all of that debt in the first half of 2024.
Duncan Bannatyne OBE, Chairman of the Bannatyne Group, said: “The business has turned the corner following the difficult COVID period. During 2022 we turned a loss into a profit, more than doubling EBITDA* to reach £29.6m. Turnover was up from £75m to £127m and membership grew by 10.7% in this financial period. It currently stands at 210,000 with a sector leading retention rate of more than 95%. We are also on track to pay off all our COVID loans next year.”
He added: “The performance is especially impressive, as over recent years the company experienced high impact increases in minimum wage, energy, and interest rates, adding £11m to our planned costs. The hard work of our leadership team puts the business in a positive position for further growth in the years ahead.”
*EBITDA means earnings before interest, taxes, depreciation, and amortisation. It is a measure of the company’s profitability without including reference to interest on debt, taxes, or depreciation of capital assets.
Founding Editor of The Edinburgh Reporter.
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