THE family-owned Auchrannie hotel and spa resort on Arran achieved a rise in turnover from £4.7 million to £5.21m in the year to March 2014 but profits dipped as bad weather and ferry cancellations hit trading last winter.
Company accountant Colin Morrison revealed yesterday that occupancy at Auchrannie, ranked the number one family hotel in the UK on travel website TripAdvisor in both 2013 and 2014, had climbed further in the current financial year to March.
The accounts of main trading company Auchrannie Leisure, which have just become available from Companies House, show that it made pre-tax profits of £165,884 in the year to March 2014. This was down from £200,014 in the prior 12 months, but still well ahead of the £33,406 figure recorded for the year to March 2012.
Auchrannie had been on course for another sharp rise in profits in the year to last March but was hit hard in the second half of December 2013 and early 2014 by bad weather and ferry cancellations.
Mr Morrison said the occupancy rate at Auchrannie, which is owned by the Johnston family, had climbed to 84.3 per cent in the year to March 2014, from 81.5 per cent in the prior 12 months.
He noted that, so far in the current financial year to March, occupancy was sitting around 90.4 per cent. At this stage of the prior financial period, occupancy was at 88.4 per cent.
Occupancy tends to be lower in the January to March period, the final quarter of Auchrannie's financial year.
Mr Morrison said that forward bookings, looking ahead over the next 180 days, were up by about seven to eight per cent on the same time last year.
He declared: "Our forward bookings are very strong at the moment."
The business, which includes the 28-bedroom Auchrannie House Hotel and 37-bedroom Spa Resort as well as self-catering lodges, has been investing heavily.
Mr Morrison expressed hopes that a 20-bedroom extension to the spa resort, which had a year ago been expected to be finished by last summer, would be completed in time for Easter.
He noted that turnover in the year to March 2014 had been boosted partly by the one-off impact of timeshare sales.
But he highlighted the fact that, excluding these revenues, underlying trading income had been up by nearly £300,000 and he described this result as "very positive".
Mr Morrison noted that underlying trading income was, in the current financial year to date, up "substantially" further.
He meanwhile highlighted the benefits of Auchrannie's recent major investment in its spa facilities.
Mr Morrison revealed that income from beauty treatments at the spa, which is now branded as The Aspa, had in the year to March 2014 been up by £165,000 on the prior 12 months.
He said: "I think that was a sign that that was a very worthwhile investment and has improved the overall product and experience for our guests."
The Auchrannie resort, which won the Customer Service Excellence category in The Herald's latest Scottish Family Business Awards late last year, is a major employer on Arran.
Mr Morrison put the current workforce at between 120 and 130, noting that employee numbers rose to about 150 during the peak summer period.
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