LUXURIOUS Highland golf and leisure retreat Skibo Castle has extended its losses in a year plagued by an ongoing global economic downturn, during which even the rich and famous tightened their belts.
According to the company’s latest set of financial accounts, obtained by The Herald from Companies House, the bolthole of choice for celebrities such as Madonna, Sir Sean Connery and former US president Bill Clinton posted a pre-tax loss of £762,000 for the year to the end of March, compared with a loss of £579,000 the year before.
Chosen as the venue for Madonna’s wedding to film director Guy Ritchie in 2000, and patronised by film stars such as Catherine Zeta Jones and Ewan McGregor, Skibo has been investing heavily to help maintain its edge in the high-end market.
General manager Peter Crome was unavailable for comment yesterday on the reasons for the losses at the residential and sporting complex near Dornoch, Sutherland.
However, in a previous interview with The Herald, Mr Crome said the castle had “every intention of continuing with our investment plans”.
He said: “In spite of the challenging environment ... we are quite confident about the future. We’re carrying on happily.”
Sales at Skibo slipped to £7.6m, compared with £7.7m the year before – although this was significantly down from £9.3m in the year to March 2008.
Nonetheless, the company’s accounts noted: “The directors are satisfied with the business performance in the year ... (and are) looking forward to continued growth in the coming year.”
Skibo was originally restored and rebuilt by Dunfermline-born tycoon Andrew Carnegie, who bought the castle in 1898 as a summer home.
The retreat was owned by Peter de Savary for 13 years until 2003, when the multimillionaire hotelier sold it for an undisclosed sum to the small group of Bermuda-registered private investors who had also been members of Skibo’s Carnegie Club.
Occupancy levels have likely been impacted by the economic slump and the weak pound, which rendered the retreat that is ultimately owned by Bermuda-based Scytherbolle even more expensive to American and European visitors – even for the very wealthy who are rich enough to sample the delights of Skibo Castle.
Back in 2007, Skibo had reached its target of signing up 500 individuals to its Carnegie Club, for which each must pay a joining fee of around £24,000 and shell out a further fee of more than £7000 a year for the privilege of accessing the residential and sporting complex.
The funds raised from membership fees are reinvested, including upgrading some holes of the golf course
However, the retreat has since found ways to absorb new members and has been accepting new applications.
Meanwhile, Skibo, which is arguably Scotland’s most exclusive golf club and formerly the home of the Northern Open, reduced staff numbers to 164, compared with 168 the previous year. The staff manage the golf course and 6500-acre estate and around 64 are full-time.
The accounts also reveal that the highest-paid director, thought to be Mr Crome, received a £126,000 pay package, flat on the previous year.
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