UK group Peel Hotels today reported a “modest improvement” in its annual financial results.
Pre-tax losses were cut to £97,411 in the 12 months to February 3 against £227,802 in the previous year as revenues rose by 4% to £15.2 million.
Revenue per available room increased 2.3% with occupancy flat and average room rate up 2.3%.
No dividend is being paid to shareholders, the company announced.
The group disclosed that it has agreed an extension to its existing bank loan with the Royal Bank of Scotland from June 2014 until August 2017.
“This extension provides the group with greater certainty with regard to its financial structure going forward over the next four years,” said chairman Robert Peel.
He added: “Sales growth has been flat in the first quarter of the new financial year and energy costs in particular have been substantially more than in the previous year.
“We have trimmed our overheads and hope to further improve our EBITDA in the current year. The cost of finance is coming down slowly albeit not helped by the increasing margins levied on us by our bankers.”
Peel said financial costs would drop in 2014/15.
“This will dramatically improve our profitability and give us wider options in terms of increasing capital expenditure, accelerating debt repayments and paying dividends to our loyal and long suffering shareholders,” he added.