STRANRAER-based McMillan Hotels has posted an improved trading performance in a year that saw it slash debt following the sale of Peebles Hydro.
The company, which owns the Cally Palace and Glenapp Castle hotels, reported underlying profits of £378,853 for the year ended May 31, compared with £67,792 the year before.
The accounts show McMillan made operating profits of £236,304 from continuing operations. This included a £142,549 contribution from discontinued activities, which relate to the sale of Peebles Hydro and giving up the lease of Kirroughtree House Hotel in Newton Stewart.
McMillan sold Peebles Hydro to Crieff Hydro in February 2014, reflected in the accounts as a £4.17m gain on the sale of subsidiary undertakings. It offloaded the lease on the Kirroughtree in the same month.
The company said the sale of Peebles Hydro allowed it to reduce its long-term debt. It stood at £2.55m on May 31 compared with £6.46m when its previous accounts were posted.
McMillan posted a loss before tax of £144,076 for the year, stated after restructuring costs of £220,403 as well as £309,715 of interest and other charges. A year previously it posted a loss of more than £5 million after a one-off charge for property revaluations.
The directors said the withdrawal from the Kirroughtree and the sale of Peebles Hydro saw turnover fall by 14.2 per cent to £8.4m. But thanks to improved trading, turnover from continuing operations fell by just 0.27 per cent to £4.95m.
McMillan said its average room occupancy on continuing operations increased by 2.7 per cent, having risen by 1.46 per cent the year before. Average spend per guest grew by 2.4 per cent, compared with a 0.26 per cent decrease in 2013.
The directors said it was pleasing customer numbers and occupancy has increased in a challenging year, adding: "Overall, the directors are satisfied with the loss on ordinary activities of £144,076 which has again been affected by one off costs during the year related to the ongoing restructuring of the company."
The accounts show that the average number of employees at McMillan narrowed to 265 from 300, with employment costs dropping to £3.5m from £4.3m.
Directors' remuneration fell to £190,153 from £242,631.
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