Bosses of a hotel group which operates in Tayside and Fife remain confident of its long-term future despite sales falling more than £33 million.
The operator of Malmaison and Hotel du Vin reported a huge drop in its turnover for the year to September 30 2020.
Newly published accounts for Malmaison Trading Limited show turnover dropped from £79.1m in 2019 to £45.2m for the reporting period.
The challenges of the Covid-19 pandemic were chiefly to blame, directors said.
Director Gustaaf Bakker said: “The trading conditions in which the company has operated in the past year continue to be some of the most challenging seen for some years.
“The company has faced headwinds in the markets in which it operates.”
The Tayside and Fife hotels are part of 35 run by the group across the UK.
In his strategic report, published alongside the accounts, Mr Bakker states the pandemic has brought “substantial operational and business challenges”.
The impact of Covid-19 on Malmaison
It has, he said, had a “significant impact” on the performance of the group.
“There is inherent uncertainty in the trading environment as the UK and the rest of the world navigate the path back to the removal of government restrictions,” he said.
It is the second year running the firm has reported a drop in turnover.
Sales for the year ending September 2019 dropped by £600,000 from the year previous.
The group’s pre-tax loss increased to £28.9m from a £3.7m loss last year.
With the pandemic ongoing, Mr Bakker said the economic future remains uncertain but he remains confident for the future.
Confident in long-term business future
Mr Bakker said the hotel operator’s directors were “strongly encouraged” by performance outside of the periods of government restrictions last year.
He said: “The directors therefore remain confident in the long-term fundamentals of the market the group operates in and the viability of the business.”
“The directors consider that the business has an inherent strength from its balanced portfolio.
“The directors are, however, mindful of the impact that changes in consumer confidence can have on the business.”
The director said the firm would focus on delivering “operating efficiency and maintaining discipline” to ensure the business remained healthy.