Macdonald Hotels returns to profit

The group, which reported a loss of £5.6m for its previous accounting period (the 18 months to 31 March 2011), has boosted turnover by 2% to £139.5m on a like-for-like basis, while operating profit before interest was up 3% to £13.7m.

David Guile, Macdonald Hotels' chief executive, attributed the group's performance to the "sheer hard work and dedication of all our people".

He said that since April 2012, Macdonald's current trading was seeing further growth through "greater activity in both the commercial and conference sectors", while the group has invested £5m in projects including bedroom refurbishments at several properties and the renovation of the ground floor public areas at the Macdonald Tickled Trout Hotel in Preston.

Commenting on the 2012 results, Guile added: "We have achieved these results despite the increasing cost pressures on our business such as utility prices, national minimum wage, food costs and a staggering £360,000 of additional 'tax' on our energy consumption paid to the government in respect of the carbon reduction commitment."

Executive chairman Donald Macdonald said that current trading conditions were "the most difficult that any of us can remember and we have to assume that this will continue for a number of years", but was adamant that the group had a "very positive future".