Dragon’s lair ploughs profits into £20m growth plan

THE hotel and leisure group owned by Dragons’ Den star Duncan Bannatyne has seen a 38% increase in 2010 pre-tax profits.

The Bannatyne Group, which has two outlets in Birmingham plus ones in Solihull, Sutton Coldfield, Tamworth, Burton-upon-Trent and Shrewsbury, saw the rise climb to £12.6m, based on a turnover of £96m.

The group, which has donated more than £1m to charities throughout the year, has announced a £20m investment fund to aid the future growth of the company.

During 2010 the Bannatyne Group operated 60 health clubs with membership rising to circa 170,000 people. It also added the luxurious Charlton House Hotel in Somerset to its portfolio of four hotels.

The group’s spa business also grew with two new venues opening during the period, bringing the total number of Bannatyne Spas to 31 by the end of the year.

The £20m expansion, which is also funded by profits from 2009, will be used to open new spas and hotels and refit the health club chain with the latest equipment.

Managing director Nigel Armstrong said attention to detail and a ‘hands on’ approach to management, a well executed investment strategy and taking advantage of universal synergies between the brands were the main factors contributing to profit growth.

He said the beginning of 2011 had shown the encouraging trend continue with health membership and hotel receipts continuing to grow strongly.

Founder and chairman Mr Bannatyne said: “The spirit of enterprise is alive and well at the Bannatyne Group. We are delighted at this increase in profits, the company continues to grow and is as exciting and dynamic as ever.”