Hanbury chairman refutes jealous claims
PERSISTENT rumours of financial troubles at Hanbury Manor, the five-star hotel, golf and country club near Ware, Hertfordshire, have been blamed on "a jealous competitor" by the property's chairman.
In an exclusive interview with Caterer last week, Paul Leach, the millionaire housebuilder who masterminded the £28m project, suggested a rival golf course operator could be behind the rumours that have dogged Hanbury since it opened in August 1990.
"People have been overheard stating categorically that they knew a receiver had been appointed," Mr Leach explained. "But it has never been true at any stage. It's been a struggle, but that's behind us now."
When the scheme to convert the late-Victorian mansion began in 1987, Mr Leach took a 50% share in the venture, the remainder being held by an American investor and the project manager.
In 1988 that was reduced to 42.5% when Florida-based Rockresorts was brought in as operator and took a 15% stake. But as of today, Mr Leach owns more than 80%, having provided all subsequent funding requirements.
That support has been invaluable, as the business itself, having opened during the Gulf War and a world recession, has struggled to stand on its own feet.
In 1992 Hanbury turned over £5.87m - up from £4.75m the previous year - but the business as a whole, including some residential property development on the estate, turned in a pre-tax loss of £2.76m. In 1993 turnover is estimated to have risen to £6.4m. Under such circumstances, other businesses might have resorted to receivership, or at the very least a financial restructuring.
But a visit to the head office of Hubert C Leach, the Hanbury chairman's 60-year-old house-building business, is all that is required to dispel any fears over its future.
His offices are located in another substantial mansion down the road from Hanbury, and although the property slump saw turnover plummet from about £30m in 1988/89 to about £20m, the impression is one of solidity rather than financial difficulty.
With the support of Mr Leach, Hanbury's future is secure, and with the economic recovery under way it is even beginning to provide a return on his investment.
There are even plans to invest money in building a top-class golf academy and driving range alongside the golf course, though Mr Leach is hoping he can eventually scale down the amount he spends on Hanbury, perhaps by bringing in a partner.
There is no question, however, that he will continue to be involved. "I've always been happy to support the project to the extent it required because I had confidence in it," he said. "Things are picking up and we're bullish."
