UPMARKET golf and leisure resort Skibo Castle has seen its losses narrow after increasing turnover from £7.6 million to £8.35m.

That helped pre-tax losses fall slightly from £762,000 to £743,000 in the 12 months to March 31, 2012.

Accounts filed at Companies House were prepared on a going concern basis in spite of Skibo, which is on a 7500 acre estate near Dornoch in Sutherland, having net liabilities of £2.8m.

A statement in the accounts said parent organisation, Bermuda-based Scytherbolle, had indicated it would make funds available to allow Skibo to continue to pay its liabilities as they were due.

The average number of full-time staff rose from 100 to 103 with part-time positions up from 64 to 76. That pushed employee costs up from £3.23m to £3.55m.

Directors' emoluments including pension payments rose from £229,000 to £232,000 with the highest paid receiving the same as the previous year at £126,000.

Net debt was steady at £18.9m.

There has been a castle at Skibo for more than 1000 years but the current building was originally restored and rebuilt by Scots tycoon Andrew Carnegie, when he bought it in 1898.

In 2003 it was sold to private investors who had been members of Skibo's Carnegie Club.

Sunderland football club chairman Ellis Short is understood to be among those involved in Scytherbolle.

Skibo has hosted celebrity weddings including Madonna and Guy Ritchie and Hollywood actress Ashley Judd and Scottish racing driver Dario Franchitti.