The health club and hotel group led by former Dragons鈥 Den star Duncan Bannatyne narrowed its losses as lockdown restrictions eased, new accounts show.
Darlington-based Bannatyne Group has grown from its first site on Teesside 26 year ago to a portfolio of 71 gyms, 47 spas and four hotels across the 海角视频.
But the pandemic forced the entire network of health clubs and spas to close for a number of months, pushing the company into the red with operating losses of 拢13.9m.
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Under strict Covid-19 rules, gyms were forced to remain closed, despite Mr Bannatyne鈥檚 calls to MPs to allow some facilities to reopen. He argued that exercise improves mental health and that the need to tackle obesity was being obstructed by health club closures in winter months.
That request was denied, however, leading the group鈥檚 finances to be impacted over two financial years, with the latest accounts affected by a full lockdown lasting from January until May.
Now accounts have been published covering the year ended December 31, 2021, showing the company is starting to recover from the effects of the pandemic, with turnover rising from 拢59.9m to 拢75.5m. Pre-tax losses were reduced from 拢23m to 拢12.9m, and the previous year鈥檚 operating loss was significantly reduced to 拢2.05m.
The average number of staff employed by the group dropped during the year, from 2,990 to 2,684.
The accounts also show that in 2020 and 2021 the group received 拢7.67m in furlough payment support.
Ed James, director at Bannatyne Group, outlined the lockdowns in a report accompanying the accounts and said the firm tapped into Government support.
He said: 鈥淲e have secured access to all relevant Government support schemes including access to Coronavirus Large Business Interruption Loan Scheme and delayed VAT payments.
鈥淲e furloughed over 90% of our employees across the group (including all health club and hotel employees) to protect the group鈥檚 financial position during our enforced periods of closure.
鈥淪ince our reopening in April 2021, the group has been rebuilding the membership base each month, and the directors are pleased with membership growth to date, planning to achieve pre-Covid-19 levels by summer 2022.鈥
At the year end, the group had cash balances of 拢5.5m, up from 拢4.4m, and bank loans totaling 拢65.4m, and as a result of the national lockdown the group drew down a second CLBILS loan for 拢12m. At the same time, the group refinanced its core term loan of 拢40m, reducing the loan to 拢33m by a 拢7m repayment.
A spokesperson said: 鈥淭he results are as expected, with increased turnover and substantially reduced losses. The company remains in a strong position to recover from the effects of the pandemic and return to a profitable position.鈥
