BEN DUNNE expects profitability at his fitness centres in Dublin to decline by “at least” 20 per cent in the current financial year due to the effects of the recession on membership fees.
Mr Dunne said: “ numbers will be up but income will be down. Prices have softened a tremendous amount.”
He said membership fees have been discounted by more than 20 per cent in the current fiscal year, which ends on May 31st.
Mr Dunne opened a fourth gym in Lucan last December to add to his existing facilities in Blanchardstown, Kimmage and Santry.
Accounts just filed for Barkisland (Developments) Ltd show that its accumulated profits rose to €5 million in the 12 months to the end of May 2009 from €4.5 million in the previous year.
Westpoint in Blanchardstown recorded a loss for the year of €6,800, while Carlisle in Kimmage posted a surplus of €1.3 million. Santry had a profit of €900,798.
Mr Dunne declined to say how many members his gyms have, but said they were receiving 30,000 visits a week.
Annual membership fees range from €175 in Lucan to up to €250 in other fitness centres. “We’re now doing six-month memberships for €150,” Mr Dunne added.
He has abandoned plans to open in Glasthule, Co Dublin, following 25 objections to a planning application. “Let’s fight the battles we can win,” he said.
The company also has sites in London and Dún Laoghaire for potential development. “There’s no borrowings on those two . . . it’s nearly better than having money in the bank.”
Mr Dunne said pay cuts of 10-20 per cent were introduced last year but there were no redundancies. “There’ll be no more pay cuts, hopefully.”
