Macdonald Hotels Group, which runs 45 four- and five-star properties across the UK, announced that it made a net profit of £1.9m (€2.33m) in the 12 months ended 29 March 2012.
This compares with a loss of £5.6m (€6.87m) for the previous reporting period to 31 March 2011, which covered 18 months. It also included two winter trading periods which, due to the seasonality of the group’s business, are the weaker months.On a like-for-like basis, group turnover grew by 2% to £139.5m (€171m)and operating profit before interest by 3% to £13.7m (€17m). During the year, Macdonald Hotels invested nearly £8m in hotel refurbishments, central reservations and revenue management systems.Donald Macdonald, executive chairman, explained: “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”. He added: “Current trading conditions are the most difficult that any of us can remember and we have to assume that this will continue for a number of years.”Macdonald’s current debt facilities expire in September 2013 and the group said it was in "advanced and positive discussions" with Lloyds Banking Group over a longer term arrangement.
