DIRECTORS at Bannatyne Fitness have said they are "disappointed" with the company's results for 2011, as charges and reduced membership affected profits.
The Darlington-based business said that profit before tax, charitable donations and impairments was £7.8m, compared to £12m in 2010. The company also re-valued its net assets from £51.3m to £37.3m. This adjustment must be reflected in its accounts and, as a result, it is listed as posting a loss of £16.2m for the year.
In a statement included in its directors’ report, it said: “The directors are disappointed with the results of the group for the year, and expect the industry to remain tough.”
The company experienced a slight 0.4% decrease in adult members during the year, and reduced the number of clubs slightly from 60 to 59. The average yield per member for the year was also slightly down, from £33.10 to £32.21. Turnover was slightly up in 2011, rising from £89m to £89.1m.
Bannatyne Fitness – which is owned by Dragons’ Den entrepreneur Duncan Bannatyne – has clubs in locations that include Darlington and Chester-le- Street, County Durham.
The average monthly number of employees – including directors – was 2,567 nationwide in 2011, compared to 2,601 in 2010. Bannatyne Fitness gave more than £1m to charities in 2010, but did not make any donations last year.
However, the Bannatyne Charitable Trust set up by Bannatyne made donations totaling £315,583 during the year to various UK registered charities, compared to £521,599 in 2010.
During the year, it also disposed of its 100% interest in Just Fitness Limited.