A GYM operator run by Dragon’s Den star Duncan Bannatyne expects to create hundreds of jobs in a £50m expansion after pumping up profits.

The Bannatyne Group says its three-year overhaul will see it buy more businesses and upgrade existing health clubs with new spa facilities.

The update comes just days after the company confirmed plans to spend £1.8m on a health club in Ingleby Barwick, near Stockton, where Mr Bannatyne’s empire began two decades ago.

As part of its overall growth plan, the company says it will add 10,000 new items of equipment and refurbish 850,000sq ft of property across its 69 health clubs and spas.

The firm employs 3,000 people and has 200,000 members, and Justin Musgrove, chief executive, said its move follows “strong” trading this year, building on the £11.6m profit recorded at the end of 2016.

The group had planned to raise £300m by floating on the London Stock Exchange, but pulled the plug on an initial public offering last year.

Mr Musgrove said: “Trading this year has, so far, been strong and the performance gives us scope to make our investments, which we also expect to create hundreds of new jobs and grow our membership significantly.

“New technology is already giving many members access to information about their fitness training, it will be extended further with some pioneering initiatives coming in the months ahead.”

Mr Bannatyne started the health club following a skiing accident, after which he needed regular exercise to recover. He could not find facilities locally and decided to use some of the proceeds from the sale of his previous business, Quality Care Homes, to launch the fitness chain.

Mr Bannatyne also owns and operates hotels in Darlington and Durham City.