The owner of the Macdonald Aviemore Resort has returned to profit after agreeing a new lending facility with its bank last year.
Macdonald Hotels hailed a “new era” for the group at the start of 2014 after it agreed a five year finance deal with Lloyds Banking Group.
As a result of this as well as an uptick in trading, the firm moved from a £6.5million pre-tax loss in 2013 to a £3.6million profit in the year to 27 March 2014.
Gordon Fraser, deputy chairman and group finance director, said the group was on track to complete a £5million investment in its Aviemore resort, which included the completion of the £1million clubhouse for the Dave Thomas-designed Macdonald Spey Valley Championship Golf Course along with a supervised play-zone for children.
He said: “The 98 bedroom refurbishment of the Macdonald Aviemore Highlands Hotel was completed along with the new children’s facility which has already proved to be a great success.
“We are currently completely refurbishing the Macdonald Aviemore Inn and the Macdonald Academy Hotel which will bring the total invested in the Macdonald Aviemore Resort to over £5million over the last two years in creating an international high quality leisure and conference destination in the heart of the Highlands with conference facilities and overnight accommodation for over 1,000 guests.”
The company said trading performance at the Aviemore Resort improved with sales up 5% to £9.96million with an operating profit up 10%.
In a statement the group said turnover rose 5% to £145.5million, while trading profit was up 29% before exceptional items to £4.2million.
Mr Fraser said the firm was planning to “significantly reduce” its debt over the next five years.
The group is planning the sale of the Macdonald Botley Park, a 200 acre site with a golf course in Hampshire, which has planning permission for 1,500 houses. It estimates the deal will realise over £60million in profit and cash which will go towards debt reduction.
The group is also “further evaluating the potential of its non-hotel assets”.
“The continued strong trading performance, our substantial continued investment in the estate, the good headroom on our £300million banking facility and our ability to reduce our debt continue to underline the financial strength of the business,” Mr Fraser added.