North East leisure, care and property business Malhotra Group plc has hailed strong trading since the easing of lockdown restrictions, having seen turnover drop 19% during the pandemic.
The Newcastle company, which owns the Great North Hotel, Grey Street Hotel, Osborne’s and a number of care homes under the Prestwick Care brand, has published accounts for the year ended March 31 2021, show the drop in revenues from £38.1m to £30.9m.
Pre-tax profits tumbled from £5.4m to £1.05m and operating profit also fell, from £6.97m to £5.97m, but the group – which moved its head office to Newcastle’s Grey Street during the period – says it is now in a strong position despite the impact of the Covid-19 pandemic.
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The Malhotra Group is now continuing its expansion programme, having mitigated the financial hit by tapping into Government grants including £2.56m for care home occupancy support, rapid testing, PPE, infection control and workforce capacity, plus £1.6m from the Coronavirus Job Retention Scheme and £258,960 local authority support for leisure and hospitality.
Within its care division, turnover was stable at £28.1m. Its 86-bedroom Beech Tree House in Alnwick, Northumberland, opened last September, offering 20 infection control beds for patients being released from hospital who had tested positive for Covid-19.
Work has also continued on the 66-bedroom nursing home development at Ryhope, Sunderland, scheduled for completion this autumn, and on the conversion of the former Rex Hotel at Whitley Bay, North Tyneside, into the 83-bedroom Bay View House care home.
Within its leisure portfolio, the firm used lockdown to continue with refurbishments and improvements, completing the 64-bed, four star Great North Hotel and the transformation of the Three Mile at Gosforth, the development of outdoor areas at Runhead, Gateshead and Leila Lily’s, Newcastle, which has led to positive sales growth post lockdown.
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Meanwhile, New Northumbria Hotel remains closed for repair work, while Osborne’s bar, which has partially re-opened, will fully reopen later this year.
Work is now under way on the refurbishment of the historic Cloth Market bar, Balmbra’s and planning permission has been sought for renovations at Market Lane, Pilgrim Street, Newcastle to create a coffee shop and restaurant and, at the Sandpiper pub, Whitley Bay, to create three ground floor retail units and 18 apartments.
The group’s plans to create a complex of bars, restaurants, nightclubs and a luxury hotel with a rooftop swimming pool within its properties in Grey Street, Cloth Market and Mosley Street has been approved and construction is expected to start next year.
Nearby in 1 Mosely Street and the adjacent property on Pilgrim Street, work is also hopes to start soon on an aparthotel plus three drinking establishments and a rooftop restaurant.
Chairman Meenu Malhotra said he was proud of the group’s performance during the pandemic.
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He said: “We operate in two of the sectors which were hardest by the pandemic and subsequent lockdowns; care and hospitality.
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“And that we have not only weathered the storm but are in a strong position to move forward, is down to several factors; our highly experienced management team and the diversity of our assets.
“We would like to thank all our staff for their magnificent contribution during the Covid pandemic. Our care staff have been outstanding and worked relentlessly during the last year so that our residents could be provided with high-quality care. We would like to offer our heartfelt thanks for their enormous efforts and dedication.”