Brian McGhee, the chairman of Scottish leisure operator G1 Group, has said the company’s 10% growth in EBITDA for the year ended 31 March is even more impressive given the more sluggish economic recovery seen in Scotland.
Within a tough operating environment and a challenging market place, G1 Group (Holdings) is pleased to deliver a positive set of financial results for the period 2014/2015.
G1 reported turnover for the year up 4% to £70.2m with total operating profit of £11.1m up 3% on last year
The gross profit percentage increased marginally to 77.4% (2014:77.1%) of group turnover.
Group net assets increased by £5.8m to £51.5m at 31 March 2015. The group undertook a significant capex programme in the year, with £5.3m invested across the estate. A total of £4.9m was invested in acquiring new properties.
Since the year the group has acquired the Espionage clubs in Edinburgh and Aberdeen and the property housing the Jam House in Edinburgh. Recently the group completed on the development of Franklin & Sloane, anew pub & kitchen concept in Kilmarnock.
McGhee said: “In the leisure sector, London and the south east in particular are experiencing rates of growth well ahead of other areas of England and of Scotland. This is reflected in the press updates for most of the quoted groups which have activities throughout the UK.
“A number of factors can be identified as contributing to the divergence in growth rates. One cited by most parties is the change to the drink driving limit in Scotland, whilst a downturn in the oil sector affects not just the Aberdeen economy, but has repercussions for many companies across Scotland. With legislative changes increasing operating costs in the hospitality sector there will foreseeably be an impact on margins should consumer spend not rise commensurately.
“Economic growth in the hospitality sector in Scotland is influenced considerably by events and functions – recent examples have been the Commonwealth Games, the Edinburgh Festival, the Ryder Cup and then the Open Golf Championship, augmented by the continuing development of the facilities at the SECC, SSE Hydro and the EICC amongst others.”
The company said that a series of appointments this year had added to the depth of experience of the senior management team and said it was well positioned to address the “challenges which the sector will undoubtedly face”.
