BANNATYNE Fitness yesterday said net profits for this year were expected to rise 57 per cent on last year, to an estimated £7.4m.

North-East multi-millionaire Duncan Bannatyne already has 36 fitness clubs nationwide, the first of which opened in the region in 1997, and has plans to increase the number to 40 in the next 18 months.

Nigel Armstrong, managing director of Bannatyne Fitness, said net profit before tax for the year ending in December is expected to be £7.4m, compared with £4.7m last year.

Yesterday, Bannatyne Fitness, which is valued at about £120m, announced a £6m deal with Technogym to install equipment at all its existing clubs over the next four years.

Four of Bannatyne's North-East clubs, in Darlington, Coulby Newham, in Middlesbrough, Durham and Ingleby Barwick, near Stockton, are among the first 11 clubs to be fitted out with the cardio-vascular equipment.

The treadmills, cross-trainers, step-machines and exercise bikes will be fitted with the latest touch-screen, audio-visual technology, including a television and interactive entertainment system.

The equipment will also be installed at Bannatyne's new clubs, including sites in Rotherham and Hastings, east Sussex.

Since the opening of the first club in Ingleby Barwick eight years ago, Bannatyne Fitness has become the UK's largest independent health club operator, with about 100,000 members.

Mr Armstrong said: "A key Bannatyne's principle is to regularly reinvigorate our clubs for the benefit of our members' healthy lifestyles.

"Bannatyne's is committed to never becoming complacent about its position in the market despite our success in the North-East.

"We are always looking at ways to develop our service to members and introduce new ways for them to place their visits to our clubs at the heart of their healthy lifestyles."

Mr Bannatyne, who appeared on the BBC2 programme Dragons' Den, recently announced plans to spend £18m developing three casinos across the UK once the details of new gambling legislation are unveiled next month.

He launched his casino empire when he converted one of his health clubs on Newcastle Quayside, which opened in February. It has already attracted more than 5,000 members and generated £750,000 turnover.

Bannatyne Casinos Limited is negotiating to acquire three undisclosed sites to develop.