Maclay Group turnover and profit flat amid tough trading conditions
Scottish bar operator Maclay Group has seen its turnover and profit in 2012 stay broadly flat against the previous year, as trading conditions remained tough.
Sales across the group stood at £10.4m, while operating profits remained steady at £700,000.
Managing director of the Maclay Group, Steve Mallon (pictured), said: "The year was dominated by economic pressures suppressing customer demand but I am pleased with the robust response from our staff who pulled together to keep operating costs tightly controlled thus ensuring that margins were maintained."
Maclay has taken the opportunity to downgrade the carrying value of its pub portfolio in line with market conditions; an impairment provision of £700,000 was made against the profit and loss account reducing the value to £14.2m. That meant that the company made a loss after tax of £800,000, while net assets fell to £3.6m.
Despite this, Maclay said it was confident for the year ahead, bolstered by a 4% increase in like-for-like sales between 16 December 2012 to 5 January 2013.
Speaking on Maclay's strategy for the year ahead, Mallon said: "Following the equity investment by Tennent's Caledonian Brewery (TCB) early in the 2012, the company's financial position is strong and positions us well for the year ahead."
Maclay's first acquisition under its new funding and supply deal with TCB, craft beer pub Munro's, has just launched in Glasgow's west end following a substantial £400,000 investment while its flagship bar, the Tullie Inn, Balloch has also just reopened after a £700,000 renovation.
Mallon added: "These investments are core to our on-going plans to grow the quality and scale of our portfolio across the central belt. Further acquisitions are under negotiation and we expect to report 2013 as a year of real progress."
Maclay operates 27 managed bars and inns across Scotland including the Lansdowne Bar & Kitchen, Three Judges, DRAM, Munro's and the Clockwork Beer Co in Glasgow; the Tullie Inn, Balloch; the West Port Bar & Kitchen in St Andrews and the Southsider in Edinburgh.
Maclay Inns manages pubs owned by a number of Enterprise Investment Scheme companies including Thistle Pubco II plc and Thistle Pubco III plc.
