Entrepreneur Duncan Bannatyne is to return to the front line of business after the head of his North East fitness group left his post.
The former Dragons’ Den star is to return to the Darlington-based Bannatyne Group as executive chairman after CEO Justin Musgrove accepted a new post in the Middle East.
In recent years, Mr Bannatyne had taken a backseat from the business he founded in 1997.
On his return, he paid tribute to his predecessor and said he was looking forward to getting more involved in the business after a year of record turnover and profit for the group.
He said: “The business is in great shape, turnover is at a record high and profits are strong and sustainable. Our members are enjoying facilities, which have been enhanced with significant investments in new equipment, new technology and a wide range of new classes and services delivered by our exceptional team.
“We now expect this long period of investment to result in a business that will maintain further growth and profits as we continue to provide the sector-leading facilities and high-quality services our members and customers expect and deserve.
“I am thrilled to be back at the frontline, leading the business at a time of great opportunity and excitement in the UK economy.
“Our CEO, Justin Musgrove, has done a great job in the last five years and we wish him well as he embarks on a new career in the Middle East. He leaves the business in fine fettle and I will enjoy running it again in a more ‘hands-on’ role.”
Mr Bannatyne’s return to the fitness group, which operates five health clubs in the North East among 72 nationwide, comes after a year in which it said turnover grow 8.5% to £117.6m.
EBITDA was up from £31.3m to £32.4m in 2018), while pre-tax profit rose from £14.3m to £14.6m.
The group, which has more than 210,000 members and 3,000 employees, is in the final stage of a £50m investment programme, and said its strong performance could be attributed to investment in facilities and technology, as well as a well-financed efficient operating model and prudent expansion.
Bannatynes said Mr Musgrove, who had been with the group for 12 years, with the last three as CEO, was “parting on good terms and leaves the business in excellent health”.
