Pre-tax profits fall
Macdonald hit by higher interest charges
Macdonald Hotels, the UK’s largest independent hotel group, saw profits hit by higher interest charges, resulting in annual profit before tax coming in at £2.7 million, £928,000 lower than last year.
The group, which has 55 hotels and resorts in the UK, Ireland, Spain and Portugal, was able to cut debt by almost £100 million.
Gordon Fraser (pictured), deputy chairman and group finance director, said: “Profit before interest of £17.4m was £2.2m (15%) above last year.
“However higher interest charges due to the accounting treatment of the Randolph finance lease (£2.3m) and a 1% increase in our interest margin £(1.2m) resulted in a profit before tax of £2.7m, £928,000 below last year.”
Ruaridh Macdonald, deputy chief executive said: “We have enjoyed significant benefit from major events including The Ryder Cup, the Commonwealth Games, The Open Golf Championship and the Farnborough Air show, with like-for-like hotel sales up by 7% and hotel operating profit up by 10%.
“We have seen increases across our commercial, conference and leisure segments, resulting in a 2 percentage point growth in occupancy and a 6% increase in average room rate.”
The group invested a further £16m in capital projects, including refurbishment of a number of its top venues.
- Group turnover up 7% (£10.2m) to £155.7m
- Total operating profit up 11% (£1.6m) to £16.9m
- Profit before tax down £928,000 to £2.7m
- Bank debt effectively reduced by over £96m at December 2015