Major Scots hotel group Crieff Hydro welcomes 'strong' full-year trading despite hurdles

One of Scotland’s most high-profile hotel groups has praised a “strong” full-year trading performance, including higher revenue, but a drop in profit amid a major investment in its portfolio.

Stephen Leckie says: 'I’m pleased with the strong trading performance... considering the pressures we have faced on all fronts.' Picture: contributed.

The Crieff Hydro group, led by fifth-generation family member Stephen Leckie, who is also president of the Scottish Chambers of Commerce and chairs the Scottish Tourism Alliance, has unveiled its accounts for the year ending February 28, 2023 – explaining that they reflect its first full 12 months of trading since February 2020.

The firm, which says it is Scotland’s oldest registered trading company, reported that income came in at £36 million, up from £29m one year previously, and a jump of 11 per cent from the pre-Covid era. However, higher costs saw earnings before interest, taxes, depreciation, and amortisation (ebitda) drop to £3.6m from £3.8m pre-Covid, but up from £2m underlying ebitda in the previous year as the post-pandemic recovery continued. Pre-tax profit fell to £419,000 from £3.1m last year.

The firm also said that with prior year accounts having been boosted by reduced VAT, business rates relief, and other forms of support, the most recent set gives “first sight of underlying customer and cost trends previously obscured by the pandemic”. It added: “Although rising overheads were anticipated across the sector, Crieff Hydro Family of Hotels mitigated these through innovation – reporting that gross margins have been maintained. Nonetheless, costs of maintenance, utilities and insurance alone were reported to have grown by nearly £2m.”

The company also reported ongoing investment of more than £3m in its portfolio, which it said came despite “significant” increases in overheads, and including the acquisition of Perthshire visitor attraction Highland Safaris.

It said the latest results encompass figures for Crieff Hydro Hotel and the Murraypark Hotel as well as the performance of the rest of the Crieff Hydro Family of Hotels including Peebles Hydro Hotel and The Park; Ballachulish Hotel, Isles of Glencoe Hotel; and Crieff Hydro’s management company, which has been managing the Kingshouse Hotel in Glencoe. The company also provides marketing services to an associate property, Taypark House in Dundee.

Stephen Leckie, the group’s chief executive and chairman, and high-profile voice regarding the Scottish business backdrop, said: “We knew that this would be a challenging year, but I’m pleased with the strong trading performance and the results of all the work the team has put in considering the pressures we have faced on all fronts.

“Maintaining investment is the key to ongoing success through good times and bad, and that has always been our focus. As we look ahead, we see continued uncertainty in trading conditions across the sector and the wider economy, but continue to focus on our guests’ experience and the memories they make when they are with us. Our investment horizon broadens as we look to make the most of the latest technology, and channel resources into reducing energy consumption on the journey to net zero.”

Separately, Edinburgh-based digital connectivity provider Commsworld – whose Scottish clients include North Lanarkshire Council, legal firm Burness Paull, and car dealership Arnold Clark – has revealed its 2022 results, hailing a “strong-performing” year. Total income increased to £27.9m from £22.7m in 2021, while pre-tax profit came in £3.3m, up from £2.3m, and adjusted ebitda amounted to £4.5m, up from £3.4m.