HIGH-PROFILE entrepreneur Duncan Bannatyne paid himself a £9 million dividend as his eponymous gym group recorded a modest rise in profits in its most recent financial year.

The pay-out to Monaco-based Bannatyne, the group’s majority shareholder, was in line with the dividends paid to directors the year before. It was announced as Bannatyne, a star of TV show Dragons’ Den, revealed he had reclaimed executive leadership of the company following the resignation of chief executive Justin Musgrove. Mr Musgrove has a new role in the Middle East.

Bannatyne Group, which has 11 outlets in Scotland, made a pre-tax profit of £14.6m for the 12 months ended December 31, up from £14.3m. Profits grew as the group delivered an 8.5 per cent rise in turnover to a record £127.5m, with the company stating that its performance built on the membership growth it has seen in recent years.

Bannatyne, which has a portfolio spanning 72 health clubs, 47 spas and four hotels, has more than 210,000 members and employs around 3,000 staff.

Last year the company rolled out a new app to allow members to monitor their fitness using electronic wristbands. It is now embarking on the final stage of a three-year £50m refurbishment programme.

Bannatyne, now executive chairman, 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.”