Bannatyne Group Announces Record Financial Performance Amid Economic Challenges
Health club and hotel operator Bannatyne Group, led by former BBC Dragon Duncan Bannatyne, has reported record revenue and profits despite facing significant economic headwinds. The County Durham-based company revealed that its revenue grew to nearly £158 million in 2025, up from £149.6 million the previous year, showcasing robust growth in a challenging environment.
Strong Profit Growth and Membership Increase
Operating profits for the group rose from £25.8 million to £27.2 million, while EBITDA saw a slight increase from £43.6 million to £43.7 million. Pre-tax profits also improved, climbing from £14.4 million to £15.7 million. This financial success was accompanied by a growth in memberships, which increased from 219,500 to 219,743, indicating sustained customer loyalty and demand for the company's services.
Strategic Investments and Expansion Plans
Duncan Bannatyne, founder and executive chairman, praised the company's performance, stating, "The business has delivered impressive results against difficult economic headwinds brought about by Government policy from April 2025." He highlighted the efforts of nearly 3,000 staff across the UK in maintaining growth and delivering popular services to loyal members.
The group has been actively investing in its portfolio, closing underperforming clubs in some areas while opening new ones in regions with stronger demand. A key focus has been on introducing advanced, all-weather padel courts, which are accessible to both members and non-members, reflecting a strategy to diversify offerings and attract a broader clientele.
Major Padel Court Expansion Announced for 2026
In a significant move, Bannatyne Group plans to announce further investments in padel courts throughout 2026. The expansion will target locations including Norwich, Livingston, Basingstoke, Chafford Hundred, Stratford on Avon, Colchester, and Grove Park. This initiative builds on last year's successes, such as opening the first padel courts in Ingleby Barwick and acquiring the Beechdown Leisure Club in Basingstoke.
The company has also progressed several planning applications for 20 additional courts across its estate, demonstrating a commitment to enhancing its facilities. However, the group faced challenges, including a £2 million increase in costs due to higher employer's National Insurance rates and rising business energy tariffs, which now represent 11% of its cost base.
Company Portfolio and Future Outlook
Bannatyne Group currently operates from 70 locations, including five in the North East: Darlington, Ingleby Barwick, Coulby Newham, Durham, and Chester le Street. Its portfolio comprises 67 health clubs, 45 spas, and three hotels. The company has also closed a site at Whitworth Street in Manchester as part of its strategic adjustments.
Mr. Bannatyne emphasized the importance of investing in people, noting, "Our investment in people has been focused on a sector leading apprenticeship programme, which facilitates progression within peoples’ roles." He added that long-term careers are achievable at the group, thanks to leadership with real expertise in health and fitness and the introduction of ground-breaking programmes popular with members.
Overall, Bannatyne Group's record financial results and planned expansion into padel courts position it for continued growth, despite ongoing economic pressures and policy-related challenges.
