MF Wells (Hotels), the company which trades as Lochs & Glens Holidays, has seen earnings narrow after sustaining costs linked to its investment in a new hotel and the start of a refurbishment programme in its older properties.
The Dunbartonshire-based firm, which operates coach tours from its portfolio of seven hotels, has booked pre-tax profits of £1.92 million for the year ended March 31. This compares with pre-tax profits of £2.55m the previous year.
In accounts newly-available at Companies House, the directors noted the "large" investment in the £8m, purpose-built Ardgartan Hotel had caused its depreciation charge for the year increase by £385,504 to £720,829.
Along with an increase in repairs and renewals expenditure, which increased by £271,188 to £900,727, the increased costs served to dent the firm's earnings for the year.
The company plans to continue the refurbishment programme this year with work at its Inversnaid and Loch Awe hotels.
In spite of the profits fall, the directors declared it had been "another strong's year's trading".
They credited the launch of the Ardgartan hotel, which is based on the shores of Loch Long and opened in August 2012, with boosting turnover to £20.6m, compared with £18.6m the year prior.
The company, run by managing director Neil Wells and brother Ian, employed 259 staff over the year, up from 241 in 2012. Staff costs rose to £3.93m in 2013 from £3.52m, while directors' remuneration slid to £79,401 from £87,315.
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