A LEISURE business headed by Dragons' Den star Duncan Bannatyne has returned to profit and increased membership numbers.

Bannatyne Fitness, which operates health clubs across the North-East in Darlington, Durham, Chester-le-Street, Coulby Newham, near Middlesbrough, saw pre-tax profits rise from £7.8m to £8.7m for 2012.

The company, that built its first club in Ingleby Barwick, near Yarm, in 1997, employs more than 2,500 employees in its 61 health clubs, 34 spas, four hotels, and bar in the centre of Newcastle.

The company's annual records show turnover rose slightly from £89.1m to £89.5m for 2012, with gross profit moving from £85.4m to £85.7m.

Profits fell to £4.3m, compared to losses of £16.2m in 2011, though adult membership rose by two per cent to 3,213 and net assets were at £40.9m, a rise from £37.3m.

The company's Charitable Trust also donated more than £227,000 to charity in 2012, a drop from £315,000 in 2011.

Mr Bannatyne, who is based in Darlington, earlier this year completed a £2.8m investment in a new head office in the town, which is home to its previous base in Haughton Road and home to about 80 staff.

Mr Bannatyne, who is group chairman, said at the time: “The new head office demonstrates the confidence I have in the group's future.

“We have established a respectable share of the leisure and well-being market and we will continue to enhance our position through the delivery of high-quality products, excellent service and professional expertise.”