The Newcastle owners of Grey Street Hotel and The Three Mile Inn have hailed an “exciting year” after posting a jump in turnover to £33.3m. M/h3>
The Malhotra Group owns and operates a raft of leisure venues, care and residential homes and property investments across the North East, and has a busy pipeline of projects over the next few years, the largest of which will create a luxury hotel on Newcastle ’s Grey Street.
Now the group has issued accounts for the year ended March 31 2018, which outline strong performance and progress in its care, leisure and property divisions.
Overall turnover crept up 3% to £33.3m, while operating profit also rose 1.4%, from £5.845m to £5.924m. Profit for the year came in at £3.699m, up from £3.663m, while shareholder funds were boosted by £4.4m to £61m.
Within the care division, which operates under the Prestwick Care brand, the firm said national nursing staff shortages and high agency costs were impacting on staff costs.
It said that local authorities and care commissioning groups in the region have provided breathing space by affording care home providers a fee level increase, but that the increase has not been enough to cover costs incurred.
Within leisure – which includes hotels, bars and restaurants including El Paso, Osbornes, The Market Lane and the New Northumbria Hotel – directors said competition has been strong, with brand new sites opening on a frequent basis, while existing operators have been refurbishing and enhancing their offers.
It also said it was continuing to be impacted by the national living wage and national minimum wage.
A report published together with the figures said: “We are delighted to again report that all three divisions contributed positively to this overall performance, showing that a well-diversified and well-invested stock of care home facilities, leisure sites and geographically spread investment properties remains key to the continuing success of our business.
“We continue to invest in a significant capital expansion programme across both care and leisure sectors to improve the quality of services across our businesses and develop new business opportunities.
“We have continued to acquire new sites, create new jobs and have a strong development pipeline.”
The accounts also reveal headcount grew by 30 during the year to an average of 1,000 employees.
Chairman and founder Meenu Malhotra said: “2018 was a very exciting year for the group as we continued in our overall growth strategy, and 2019 has already started strongly with many new leisure and care developments already under way as well as the acquisition of a care home in Alnwick in January.”