Achi news desk-
Costley & Costley has also put Souter’s Inn, a luxury bar and restaurant in the heart of Robert Burns country in Kirkoswald, on the market. Ultimately the company aims to focus on two properties, Lochgreen and Highgrove House Hotel, which are also in the Troon area. Highgrove is currently being renovated.
Costley & Costley’s new accounts show that the company turned over £6.09 million for the year ending 30 September 2023, down 26% compared to the previous year, with the reduction having attributable to the sale of Brig O’Doon in October 2022. Pre-tax profit fell to £772,909 from £1.03 million.
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However, after a quiet period during the months of October, November, January and February, amid the wider pressures facing the hospitality industry, the current year is set to be extremely busy for Costley & Costley, with wedding business is booming and the Open Championship is about to arrive. place at Royal Troon next month. The R&A, which organizes The Open, has booked all of the hotel rooms at Lochgreen for the duration of the event.
Mr Costley, who runs the company with his wife Cath and Andrew, said: “We are very, very busy now…March, April, May, June, July, August and September will be exceptional. We are fortunate in the respect that we had The Open here in July as well. We have many good functions. The wedding business is unbelievable, it’s completely crowded. We have a very healthy balance sheet at the moment. Getting the Top off solved us financially.
“I guess we need another year just to get things sorted. We have a very good business at Souter’s. It has a huge turnover and I’m hoping that maybe we can get it sealed sometime this year. It’s not the end of the world if it doesn’t go. We’ll see how it goes.”
Mr Costley states in the accounts that the profit from the sale of Brig O’Doon has been reinvested in the business. He added that the group had renegotiated its borrowing facility, which reduced its net current liabilities to £1.89m £5.68m.
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He said: “The group will continue to explore options to expand and refurbish the flagship locations and consider the position of the remaining smaller properties.”
Costley & Costley sold Brig O’Doon to Robert & Vivien Kyle’s RAD Hotel Group, which added a portfolio to the venue including Seamill Hydro and Fairfield House Hotel in Ayrshire, the Carlton Hotel in Prestwick, and the Dalmeny Park House Hotel on Glasgow’s south side . . The deal came after Costley & Costley offloaded Doonbrae for £1.3m and Eillisland House Hotel for £1m in the year ending September 2022.
The company erected the for sale sign above the popular Souter’s Inn, located in the Ayrshire village of Kirkoswald, in March. The bar and restaurant, which has a thatched roof, was built on the site of the old schoolyard where Scotland’s national poet, Robert Burns, studied at the end of the 18th century.
Selling agent Smith & Clough, who have been instructed to sell the pub, are seeking offers in excess of £995,000 for the freehold interest in the business.
Mr Costley, former chairman of Kilmarnock Football Club, said: “I’m interested in Souter’s at the moment, but I don’t know if it will materialize or not. We’ll see how it goes. If not, we’ll hold onto it until we get it off.”
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Costley and Costley’s portfolio also includes the Cochrane Inn in Gatehead, which is currently leased. The tenant has an option to buy the property in January.
Writing in the accounts, Mr Costley said the group had “continued to benefit from a strong wedding market”, adding that the “prospect for weddings and events is particularly strong for the current year” despite a slow start.
Mr Costley, a classically trained chef who attended cookery school in Versailles, said: “The group is aware of a disappointing start to the 2023/24 year. Trading has been slower, but as is always the case, business has now picked up as we enter the busy wedding season.
“The restaurants across the Costley sites are well established and will continue to generate a steady stream of revenue for the group.
“The business is currently facing several economic factors that are affecting the business, including energy costs and inflationary price increases in several cost areas. The directors are dealing with these and are hopeful that the business will trade through this period with very limited impact on bank loans and future plans.”
The accounts show that Costley & Costley employed 141 people on average during the period, down from 185 the previous year.
