The Newcastle owners of the Three Mile inn and the Grey Street Hotel saw sales and profits rise in a busy year for all three of its business divisions.
The Malhotra 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 North East property, leisure and care firm Malhotra Group Plc, has published accounts for the year ended March 31 2019 revealing a 4.5% rise in revenues to £34.8m amid a year of refurbishments and acquisitions.
Ebitda increased by 3.9% to £9.24m, resulting in operating profit of £6.35m, up 7.2% on the previous year’s £5.92m. Shareholders’ funds increased 6.4% to £64.9m.
Investment proved to be key during the year, directors said.
In a group strategic report, chairman Meenu Malhotra said: “We continue to invest in a significant expansion programme across both the care and leisure sectors to continue to to improve the quality of services across out business.
“We are delighted to again report that all three divisions contributed positively to this overall performance showing that 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.”
Average staff numbers grew 13 to 1,013 across the group.
Within its care division, which trades under the Prestwick Care brand, highlights included improving average room occupancy to 90%, and all 13 homes are rated as good or outstanding by the CQC. It acquired Hillcrest Care Home in Alnwick during the year, which improved to a ‘good’ rating following its first inspection under the Malhotra Group’s ownership. Fee income in the division grew 8.1% to £24m.
Meanwhile, development is ongoing on the creation of three more care homes in the region, which will add a further 235 bedrooms.
Turnover within its leisure division dropped from £9.38m to £8.93m as a result of significant capital investment and redevelopment across its portfolio, which has seen changes at traditional bars in Byker, in the city centre and at its Grey Street Hotel, resulting in luxury bar, restaurant and nightclub Leila Lily’s.
However, it said Ebitda increased 26% to £1.2m.
Directors said rental income in its commercial property division remained steady, but dropped from £2m to £1.98m following the decision to close its amusement arcades.
Following the year end, the group acquired listed building 50 Grey Street which it is converting into its new headquarters.
Mr Malhotra added: “I am delighted with these results and for the positive contributions all areas of the group have made towards our continuing success.
“The profits for 2019 have helped to further underpin our ongoing growth aspirations and this is particularly relevant as we prepare to open two, brand new care home facilities, at Alnwick and Ryhope and to relaunch our popular Three Mile Inn leisure venue at Gosforth.
“As chairman of the group I am particularly proud of recent achievements, including ‘outstanding’ status being awarded to two of our existing care homes and our flagship leisure venue, Leila Lily’s, at Grey Street, Newcastle, being granted a prestigious AA Rosette.”
