David Kemp, Finance Director, has provided comment on the financial performance Gleneagles Hotels Limited for the year ended 30 June 2015.
Highlights of the financial performance in the year ended 30 June 2015 were 7% growth in turnover to £47.6m and growth in operating profit from £1.9m to £4.1m.
The main factor supporting the turnover growth was a 3% increase in room volumes, continuing the path of growth in volumes following the downturn in 2009/10, and supported by favourable economic conditions. The food and beverage operation and leisure facilities also contributed strong revenue growth underpinned by prior year investment in these areas including the new Club facility.
In the area of golf, the business undoubtedly enjoyed the worldwide profile from hosting a hugely successful Ryder Cup in September 2014 and an upturn in related golf events, however, countering this, the financial statements also include the final phase of investment to prepare the venue for the tournament, which included closure of the PGA Centenary Course for over a month and closure of other activities ahead of and during the event.
The improvement in operating profit to £4.1m reflects the revenue growth and an improvement in margins with a focus in managing costs in support teams whilst maintaining and growing services in all guest facing areas.
Investments in the financial year included the opening of the new indoor Gleneagles Arena – a versatile space for exhibitions and concerts and which also accommodates four indoor tennis courts.
In the current financial year we are continuing to see positive trading conditions. Following the change of ownership of Gleneagles, led by Ennismore in June 2015, a multi-million pound refurbishment programme is now underway.
The first phase of the programme includes extensive bedroom refurbishments, a complete redesign of the main bar, the creation of a new cocktail bar and lounge, and the addition of a new bar in the Dormy Clubhouse.
On the golf courses, extensive drainage and bunker programmes have continued over the winter to further improve course conditions, and the King’s course re-opens in April with styling that reflects the origins of this great James Braid course. These renovations are set to further enhance Gleneagles’ position as an iconic country estate with a distinctively Scottish heritage whilst staying true to the hotel’s origins and world class reputation.
While all of these exciting changes are continuing for the benefit of our guests in the future, Gleneagles remains primarily focussed on delivering the very best service to our customers and building on our market-leading reputation.
Gleneagles Hotel www.gleneagles.com
David Kemp, Finance Director, Gleneagles Hotels Limited