Here For You Hospitality, the Lancashire-based leisure group that operates the 12-strong Yard Glass Pub Company, reported a £2.3m loss for the year to 31 December 2011, after writing down the valuation of its estate by c£3m.
The group, which also operates the two-strong Sporting Lodge Inns business and the Escape Zone gym company, said that a restructuring of its bank loans during the year that led to higher capital repayments, interest rates and monitoring fees had led to a “considerable negative impact” on its profitability.
Pre-tax profit increased from £277.8k to £399.2k however, operating profit fell from £915.5k to £869.1k. The c£3m writedown left the estate valued at c£18.5m and the company said they would seek a number of external valuations of its portfolio in 2013.
As a result the company, which reported a slight rise in turnover for the year from £8.3m to £8.7m, said that it had taken steps to dispose of a number of sites and reduce borrowings. It said it was currently in negotiations on several properties.
In October last year, the group disposed of its business in Heanor, Derbyshire, with the funds received used to pay down bank borrowing. It said that much of the free cash flow it generates continues to be used to reduce bank borrowings, with bank loans reduced by £530k during the year and are forecast to be reduced by a further £660k this year before any one-off payments from asset disposals.
The company said it spent the years focussing on improving the condition of its estate, with much of the Sporting Lodge in Leigh refurbished. Further improvements were made at the start of this year, particularly at its other Sporting Lodge in Middlesbrough where the group is adding and extra five letting rooms and a private dining room.