Hotels

G1 Group turnover jumps 5% in full-year results

Scottish hospitality business G1 Group has reported a 5% increase in turnover to £132.2m for the year ended 31 March 2019.

The increase in turnover was largely the result of “organic growth”, and translated into EBITDA of £22.5m, over 8% ahead of the prior year, with growth across all areas of the business.

The group said the investment program at the Scotsman Hotel has had “excellent” customer feedback and gained industry awards, and since  Since the year end, after an extensive renovation program, the boutique Scotsman Picture House opened to complement the other facilities at the hotel.

It added that the most significant acquisition in the year was a group of apartments at George lV Bridge in Edinburgh as an initial move into the serviced apartment sector, with further projects underway.

Additionally, all 101 of its head office personnel are now based at Hamilton House.

Brian McGhee, chairman of G1 Group , said: “We are now three years on from the EU referendum result. The media continues to provide a daily diet of debate and speculation and the resultant political and economic uncertainty is a constant challenge to business.

“Perhaps the change of substance from a year ago is the imminence of the UK departure from the European Union, and accordingly the potential social and economic impact.”

He added: “In parallel with this, the UK has continued to experience major disruption in the retail sector. The leisure sector too has seen many high-profile casualties particularly in leasehold casual dining groups.

“In 2017/2018, it is reassuring to see continued solid growth at G1 with significant increases in turnover, operating profit and EBITDA. Despite the challenges from rises in labour, rates and utility costs, a combination of targeted investment and careful management has enabled G1 to achieve strong results.”

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