Iconic Crieff Hydro Hotel warns of 'difficult trading period' as finances rebound post-pandemic

Crieff Hydro has returned to profit after rebounding from the devastating impact of the pandemic but warned of a challenging period ahead amid the cost-of-living squeeze and soaring energy costs.

The company’s annual accounts for the year ending 28 February highlight a robust trading performance relative to the continued impact of the Covid crisis and in a period when the business was forced to shut for two months.

This, coupled with the many wider challenges presented by the pandemic, meant that revenue remained 20 per cent short of pre-pandemic expectations.

The accounts show that the family-run business, which was founded in 1868 and now owns and operates eight hotels across Scotland, enjoyed a marked rise in annual turnover, from £12 million to nearly £29m, with profit before tax for the year of some £3m - balancing a similar loss made in the previous year due to the pandemic.

Chairman and chief executive Stephen Leckie, who also chairs the Scottish Tourism Alliance and is president of the Scottish Chambers of Commerce, said: “We’re pleased with what has been a strong trading performance considering the huge challenges the team has faced.

“Whilst this may look like a good year on paper, in fact it has taken us two years to declare one year’s ‘normal’ profit. And the whole industry now faces a difficult trading period across the entire economy.”

The Crieff Hydro family of hotels was able to mitigate losses by benefitting from continued government support in the form of reduced VAT rates, the business rates holiday and furlough.

Profit before tax was also enhanced by the rising value of investment properties and an upside on interest rate hedging. Positive cash generation meant the company continued to invest to strengthen its future growth prospects.

The historic Perthshire Crieff Hydro Hotel forms the heart of one of the most popular holiday resorts in Scotland.

Despite the downward pressure caused by the pandemic on underlying trading profitability, enhanced cash reserves mean that a further £3m has been earmarked for capital investment back into the business over the coming financial year.

Leckie added: “Although we’ve faced many challenges in the last two years - and will continue to do so - we’ve managed to maintain a positive cash position meaning we can look to the future and continue to invest in every aspect our hotels, whether that’s guest facilities, our people or streamlining how we work through technology.”

Recently named Family Business of the Year for Scotland, Crieff Hydro has been run by Leckie’s family since 1868.

Results include figures for Crieff Hydro Limited (the iconic 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 Limited (Peebles Hydro Hotel and The Park) together with Ballachulish Hotel, Isles of Glencoe Hotel; and Crieff Hydro’s management company, which has been managing the recently rebuilt Kingshouse Hotel in Glencoe.

The company also provides marketing services to an associate property, Taypark House in Dundee.

Leckie, who has been one of the hospitality industry’s highest-profile voices during the pandemic, was appointed Lord-Lieutenant of Perth and Kinross in 2019.