Macdonald Hotels, which operates 45 hotels throughout the whole of the UK, saw its turnover increase by two per cent, amounting to £139.5 million in the year to March. This prompted a three per cent climb in its operating profits, which totalled £13.7 million for the period.
Eager to congratulate the group’s staff for its hard work throughout the year, the CEO for the firm, David Guile, said:
“We have achieved these results despite the increasing cost pressures on our business such as utility prices, national minimum wage, food costs and a staggering £360,000 of additional ‘tax’ on our energy consumption paid to the government in respect of the Carbon Reduction Commitment.”
The year has also seen significant investments being made too, with nearly £8 million being spent on refurbishments and updates to its computer systems. Guile went on to say:
“We have continued to invest in our people, our IT and web infrastructure and our hotels. We are now seeing the benefits of this strategy, not only in our results, but also in continuing to improve the quality of our customer experience.”
Much of its investment has come through debt facilities in place for a number of years. Due to expire in the autumn of 2013, the firm has said that discussions are ongoing to rework the deals.
Similarly, many companies in the hospitality industry are moving away from debt facilities, preferring instead to boost cash flow through invoice discounting and factoring.
With or without debt though, the firm believes it has a positive future despite challenging trading conditions.