Newcastle leisure company The Inn Collection Group says it is continuing with plans to add up to eight new venues a year, after seeing revenues rise jump 79%.
The pubs-with-rooms group, which recently moved its head office to Quorum Park, has published accounts for 2021, showing turnover rising from £13.8m to £24.7m, despite the year’s trading being severely impacted by Covid-19 restrictions. The company toasted successful trading in the year ended January 2 2022, aided by its enlarged portfolio of pubs-with-rooms across Tyneside, Northumberland, County Durham, Teesside, Yorkshire, Cumbria, Lancashire, Wearside and North Wales, which welcomed back visitors as restrictions eased in May.
The previous year’s loss of £4.3m was converted to operating profit of £196,000, but the overall loss for the financial year, however, grew from £10.4m to £12.44m, driven by another year of sizeable property investments. In the accounts, the group said the year was impacted by the significant effect of Covid-19 as the UK went back into lockdown at the beginning of January 2021, effectively closing the hospitality sector until May 2021.
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However, the period from May to December saw trade bolstered by the Government reduction in VAT on food and accommodation. The group says it has become a market leader in developing contemporary inns providing accommodation, food and drink to leisure and business customers, having increased the number of rooms on offer to 502, up from 445 rooms, available across 19 sites, up from 15.
During the year a number of new acquisitions were completed, including The Park Hotel in Tynemouth, which is undergoing a major renovation programme, The Ripon Hotel and Spa and The Dean Court Hotel in York. Meanwhile, refurbishment programmes at previous acquisitions, including The Angel in Bowness, were also carried out.
The company said: “Significant investment continued in 2021 into the management and operating infrastructure to support execution of the long-term expansion plan and delivery of the high-quality standards and customer service levels expected throughout the group. A strong pipeline of further acquisition opportunities has been developed gradually at the time of issuing the financial statements, all at different stages of progress through to near completion.
"The management team and investors have increasing confidence in the potential of the existing portfolio and potential priority acquisitions. Special care and focus are rigorously applied to the selection of new additions, extensions and refurbishment plans to complement the blend and value-added potential of the overall portfolio.
“The Covid-19 impact saw a number of sites coming to market as incumbent owners felt the impact of the pandemic on business being affected by national and global economies. This has been carefully assessed against future performance and plans and the directors have concluded without doubt that the group’s current strategy remains on course for maximising investor value.”
In February the firm was sold by previous owners Alchemy Partners to a new firm owned by the Harris family in conjunction with Kings Park Capital, a month after OakNorth, the UK bank for entrepreneurs, amended its facility to to give £63.5m of committed facilities to fund the refurbishment of a number of sites as well as fuel further expansion.
The accounts added: “With the support of OakNorth and the continued support of its investors, the group plans to double its portfolio in the coming years.”
