Ben Dunne expects water charges will help his gym business to clean up

Ben Dunne is expecting a "hot shower" dividend for his gym business as a result of the Government’s pending household water charge.

Mr Dunne said yesterday that he expects his gym business to enjoy a lift when the contentious water charge comes into force, with people availing of hot showers at his gyms.

“It has to help. With the water charges, people will be able to shower cheaper at our gyms than at their own homes and I do expect a lift in membership when it is brought in,” the businessman said yesterday.

Membership across Mr Dunne’s network of nine gyms totals 55,000. He confirmed his gym business recorded an operating profit of €1.8m before depreciation in the 12 months to the end of May last year.

After non-cash depreciation costs of €2m are taken into account, the business recorded a €200,000 loss last year.

Revenues increased from €7.2m to €9.2m last year, while those at his UK gym business increased from £600,000 to £1m (€735,000 to €1.3m). Mr Dunne expects revenues to be around the same in Ireland in the current year.

Some 70 people are employed in the business and Mr Dunne said he is happy with how things are progressing, confirming he is seeking to open two more gyms in Dublin as well as in Cork and Carlow.

“We have a way to go, though. We are still in tough times and disposable income is still a very scarce commodity. Membership prices are still very soft.”

Mr Dunne was commenting on accounts filed by a range of his firms with the Companies Office. Carlisle Health and Fitness Club Ltd recorded an increase of €184,000 in accumulated profits to €2.65m.

Mr Dunne operates seven gyms in Dublin. He said he has plans to expand the number to 20 over the next number of years.

He said the business “is slightly better” than last year, with the real growth taking place in Britain, where Mr Dunne operates two gyms in Liverpool and recently opened one in Manchester.