Coach-trip losses hit David Urquhart as pensioners tighten belts

The group's transport arm posted a marginal 187 pre-tax loss in the year to 30 April, compared with a profit of 17,000 in the previous 12 months.

The loss followed a dip in turnover from 8.2m to 7.1m and contributed to the travel group's overall profit falling from 373,000 to 107,000.

Accounts filed at Companies House showed that overall turnover fell from 29.5m to 26m.

The firm had previously warned that pensioners - among its key customers - were being squeezed by a lack of dividend income from investments and a lack of interest from their bank savings accounts, forcing them to take only one holiday a year instead of two or three.

The directors of the company - whose tour coaches are a familiar sight on Scotland's roads - added: "The external commercial environment is expected to remain competitive throughout 2010-11, with the forecasted tightening of consumer spending requiring a continued focus on the delivery of value-for-money holidays."

Hart Hotels, the group's accommodation arm, posted a fall in turnover from 3.7m to 3.5m, while pre-tax profits dropped from 21,000 to 12,000.

David Urquhart founded his travel company in 1983 and now delivers more than three million holidays a year, including cruises and holidays by air to Europe and other parts of the world.

The firm's headcount fell from 203 to 191, with the highest-paid director - thought to be Urquhart - taking a further pay cut, with his package falling from 133,000 to 109,000. The total stood at 244,000 in 2008.

Having resumed dividend payments in 2009 with a 1.515-a-share payout, the directors proposed a divi of 4.05 for 2010. They added that the cash payout had been deferred and was being drawn down monthly.