Newcastle’s Malhotra Group has said it is expects trading to be robust when Covid-19 restrictions end, after making heavy investments into its leisure venues
The property, leisure and care firm has published accounts for the year ended March 31 which outline a series of significant investments during the year, including improvements to the Great North Hotel, its new 64-bed hotel alongside the Gosforth bar and restaurant the Three Mile Inn.
While the accounts don’t cover the financial impacts of Covid-19, the group says its investments put it in good stead for the end of lockdown restrictions when venues can reopen.
In the accounts report, chairman Meenu Malhotra said: “We remain vigilant to the threat that this has on the hospitality and leisure sector with reduced trading hours, forced lockdowns and loss of customer confidence.
"However, given the investment we have made into our high-quality venues with sufficient flexibility to provide a Covid safe environment we expect our trading performance to be robust when sites are permitted to open.”
In the year leading up to the arrival of the pandemic, the firm said its sales and profits rose in a busy year for all three of its business divisions.
The group owns and operates a raft of leisure venues, including Osborne’s, the New Northumbria Hotel and Leila Lily’s, alongside owning and operating the Prestwick Care division and a number of residential and commercial property investments across the North East.
The firm saw turnover rise from £34.8m to £38.1m, while operating profit also rose from £6.34m to £6.97m. Pre-tax profit jumped from £4.8m to £5.4m. Shareholder funds, meanwhile, increased by 21.6% to £78.8m.
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Staff numbers also rose by 43 to 1,056.
Mr Malhotra commented on the year’s performance in the accounts, saying: “We continue to invest in a significant capital expansion program across both the care and leisure sectors to continue to improve the quality of services across our business. We are delighted to again reported that all three divisions contributed positively to this overall performance showing at 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.”
Within its care division it said the ongoing national nursing staff shortages continue to impact on staff availability. It also said it is “remaining vigilant” to risks posed by Covid-19.
The report adds: “During the last quarter of the financial year and during the period that followed it’s become evident that a new and significant risk was facing the business; the Covid-19 pandemic.
“We remain vigilant to the threat that this has on the provision of care, with our overarching objective being to provision of a safe environment for our staff and our residence.
“To do so we are investing where ever possible effective infection control measures and working with our sector peers to ensure we adhere to and drive best practice.
“Whilst we have not been immune from the impact of positive Covid-19 cases within some of our homes and not with standing the challenges this has presented, we have navigated through the crisis well. Although it is not possible to predict fully the impact of Covid-19, all necessary steps are being taken to steer us through these unprecedented times.”