A family-run Perthshire holiday park business has been “massively impacted” by rising costs.
Blairgowrie-based Wood Leisure was set up by husband-and-wife team Colin and Margaret Wood more than four decades ago.
The business, now run by the founders’ three daughters Kirsty, Rachel and Sarah, operates six holiday parks across Scotland.
Alongside its Perthshire headquarters, it also runs Lomond Woods Holiday Park, Corriefodly Holiday Park, Deeside Holiday Park, Campsie Glen Holiday Park and Callander Woods Holiday Park
Newly published accounts show sales fell by more than £1 million during the year to January 2023.
The firm’s reported turnover of £7.6m for the period, down from £8.8m in 2022.
A challenging year for Wood Leisure
In his strategic report, filed alongside the accounts, Mr Wood said it had been a challenging year for the company.
He said: “2022 heralded rising interest rates, inflation in every sector, huge increases in electricity and gas prices and staff demands for living increases in wages.
“All of these massively impacted on our business and it wasn’t possible to recover all of these increases through higher prices to our customers.
“Government interventions to support businesses ended and the ‘legacy of Covid’ continued to create challenges.”
The accounts show operating profits were also down from just north of £2m to £843,185.
Wood Leisure employed 95 staff during the year, with 61 site staff and 34 in head office roles.
Plan to drive Perthshire business forward
Despite the challenges, Mr Wood said staycations had continued to be popular – though not at the same level as 2021, when Covid restrictions limited overseas travel.
Mr Wood’s report added: “Wood Leisure continued to focus on driving the business forward, developing new pitches, investing in upgrades of accommodation and infrastructure, implementing new technologies and training and developing staff.”
He said more holiday homes became available at the end of last year, offering the business more opportunities for upgrades.
However, Mr Wood said the costs involved there had also “spiralled”.
Continuing risks for Wood Leisure
Going forward, he said the cost-of-living crisis would continue to impact the firm.
He added: “Major risk factors continue with the inflated price of all commodities necessary to the operation of the business.
“Particularly the huge increases in costs of new caravans and lodges and the increase in fuel costs.
“The cost-of-living demands on our customers will impact negatively on the sales of caravans and lodges as well as the lucrative short break market.”
Mr Wood said “escalating” interest rates, a “massive” increase in business rates and the increase of corporation tax would impact “very negatively” on the profitability of the business.
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