INDEPENDENT holiday firm David Urquhart (Travel) has reported a dip in profits from £177,000 to £107,000, even though turnover increased from £23 million to £25m.

The East Kilbride coach holiday specialist saw the rise in turnover wiped out by the cost of its sales also jumping up £2m to £18.3m. In accounts, filed at Companies House, the directors said: "The external commercial environment is expected to remain competitive throughout 2012/13 with the forecasted tightening of consumer spending requiring a continued focus on the delivery of value for money holidays."

The company says it takes more than three million people on holiday each year.

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However, travel companies are having to adapt to reduced consumer spending patterns alongside rising costs in areas such as fuel.

Despite the difficult trading environment, David Urquhart (Travel) continues to generate cash and its net funds improved from £3.1m to £3.2m in the 12 months to April 30, 2012.

Average staff number during the year dropped from 181 to 169, which cut employee costs from £2.9m to £2.8m.

Directors remuneration including pension payments dropped from £390,070 to £354,288 although the highest paid received an increase from £106,909 to £111,027.

As in the previous trading period there were no dividends paid in the year.

Subsidiary Hart Hotels includes venues such as the Glenmorag in Dunoon, Fife Arms in Braemar, Mackay's at Strathpeffer and the Garve in Wester Ross.

The David Urquhart Transport business, also included under the Travel accounts, provides vehicles and transport to the tour operating arm.

Sister operation David Urquhart Sky Travel, which has not yet filed its 2012 accounts, sells flights and cruises.

The travel business is celebrating its 30th anniversary with a trip to the Norbreck Castle Hotel in April with promotions including 99p drinks in the bar.