Coaching Inn Group reports £800,000 loss despite 32% turnover growth

CEO Kevin Charity
08/01/2018 - 10:20
Coaching Inn Group has reported that it made pre-tax operating losses of £824,175 for the year ended 31 March 2017, a significant drop from the £44,210 profit it made the year before.

The mid-market hotel and inn operator labelled the year a “successful” one after generating £17m in turnover, a jump of 31.9% on 2015-16 (£12.9m).

The company also saw a year-on-year rise in group EBITDA of 13% to £1.17m. Gross site EBITDA also increased 17% to £704,152, according to latest filings on Companies House.

The full year effect of a new hotel opening during the prior year, three new acquisitions and one major refurbishment are credited with driving turnover up.

The group’s portfolio increased from ten to 13 during the financial year with the additions of the Castle (Conwy), Three Swans (Hungerford) and Golden Lion (St Ives).

Chief executive Kevin Charity said: “Our existing sites have continued to perform well in what has proved to be a very competitive market.

“We invest a lot of time and money each year in our sites to maintain their appearance, atmosphere, ambience, product offerings and overall customer experience.”

A rise in administrative costs, from £9.3m last year to £13m this, was the dominant factor in the decline in profits.

The group says it is committed to further growth with a “strong pipeline” of potential new sites already identified.

In November 2016 Coaching Inn Group secured an extra £7.8m in investment from the Business Growth Fund (BGF) to fund expansion.

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