The chief executive of Crieff Hydro has hailed a “milestone” year for Scotland’s oldest registered trading company.
Stephen Leckie was speaking as the hotels group moved to publish its annual accounts for the year to February 28, a period which concluded with the company securing two transformatory property deals.
The moves saw the firm secure a management agreement to operate four additional properties the Yorkshire Hotel in Harrogate, the Ballachulish Hotel, the Isles of Glencoe Hotel & Leisure Centre, and the Oban Caledonian under wholly owned subsidiary Freedom Hotels (Management) Ltd.
The group also separately completed the purchase of Peebles Hydro and its sister Park Hotel property, increasing the total number of hotel bedrooms operated by the company by more than 400 to 644.
In addition the company, which employs more than 630-staff in Crieff alone, operates 55 self-catering units, representing a further 137 bedrooms.
“Crieff Hydro has undoubtedly had a milestone year, and I’m delighted that our continued investment has resulted in a significant increase in revenue and a healthy dividend for our shareholders,” said Mr Leckie.
“However, there remains uncertainty and risk around the pace and trends in the wider economic recovery, and there is no room for complacency.
“Although we are currently outperforming our competitive set in many areas, we will remain committed to controlling and reviewing our variable costs and improving efficiency to allow us to be flexible and responsive to changes in customer expectations, trends and events in the economic landscape.
“Our independence and our ability to remain nimble and flex with the environment is one of the key attributes of the company, and one which currently sets the Crieff Hydro Family apart from most of our competitors.”
The firm’s latest set of accounts shows revenues from the its Perthshire-based operations which include the 215-bedroom main hotel and surrounding 900-acre estate and the sister 21-room Murraypark hotel operation grew 6% to £18.84 million in the year to February 28.
Pre-tax profits came in at £507,864, a drop from the £633,145 achieved in FY2013 but which included one-off costs of £155,000 relating to a refinancing, strategic changes and other exceptional matters.
On an underlying-basis, profits were up 4.7% on the year to £663,615 and overall margins were maintained.
Total capital investment of £1.74m was made in upgrading existing assets and adding new catering and adventure activity facilities at Crieff during the year.
The firm expects a similar outlay in the year to next February.
Hydro managing director John Jennett said the investment programme had given a platform for success, but stressed that providing a top travel experience to guests more than 1,000 flock to Crieff every day was paramount.
“Having the drive and commitment to providing great hospitality and the best customer experience possible can’t be underestimated,” he said.
“This is why we’re in business. We now have eight hotels as part of the Crieff Hydro family, all very different in their own ways but each one joined together by our glue which is real enthusiasm and commitment for delivering our unique brand of hospitality, with emphasis on quality, personality, and in continually exceeding customer expectations.”