Bar operator Maclay Group yesterday said it expected to increase its Scottish pub portfolio this year despite making a £737,000 pre-tax loss in the past 12 months.
The company whose 27-strong pub estate features a number of prominent outlets in Tayside and Fife, including Braes in Dundee and The Rule in St Andrews achieved sales of £10.4 million in the year to September 29 and posted an operating profit of £718,300.
However, the firm took a £680,000 hit on the value of its property portfolio and racked up a full-year pre-tax loss of £737,000 compared with a £75,891 profit the previous year.
Net assets fell to £3.6m.
The Alloa-based company said the pub sector had faced a tough year as the constraint on disposable incomes caused by the difficulties in the wider economy continued to bite.
Managing director Steve Mallon said: “The year was dominated by economic pressures suppressing customer demand but I am pleased with the robust response from our staff, who pulled together to keep operating costs tightly controlled thus ensuring that margins were maintained.”
In February, Maclay agreed a deal with the owners of the long-established Robertson’s shop and restaurant on Brook Street in Broughty Ferry.
The agreement means Maclay will buy the property out if planning permissions are forthcoming to allow the site to be changed for use as a licensed restaurant and bar.
It had been reported that the proposal had been dropped in the face of local opposition, but Mr Mallon yesterday said the plan was still alive and the new outlet could be open by late summer if permissions could be secured.
The project would involve a £500,000 renovation of the building to create a new kitchen and beer cellar, as well as upgraded decor throughout.
Mr Mallon said he was due to visit Broughty Ferry on Saturday as part of a public consultation ahead of a planning application for the project being launched.
He said: “If we get the planning permission we need for the proposed cafe, bar, diner then the deal will go through.”
Mr Mallon said the firm remained in a strong position financially after a move early last year by Tennent’s Caledonia Brewery to take a major equity stake in the business.
He said the company was now on the lookout for further acquisition opportunities after completing the purchase and renovation of two properties on the west coast in recent months.
“Investments are core to our ongoing plans to grow the quality and scale of our portfolio across the central belt.
“Further acquisitions are under negotiation and we expect to report 2013 as a year of real progress.”
business@thecourier.co.uk