Castle View Corporate Holdings (CVCH) – formerly Castle View Ventures – is trading profitably again, having recorded record losses of £ 12.05million in the first full year of the pandemic.
After several years of substantial pre-tax profits, the company posted a turnover of £ 107million, up from £ 261million the year before.
The Bridge of Allan-based company has interests in sports facility management, weight management and food production.
Martin Bell, Group Managing Director, said: “In total, the group was able to operate its facilities for less than four months during the year.
“All activities of our main subsidiary, the Sports and Leisure Management (SLM) group, were shut down in March 2020.
“The initial shutdown ended on July 25, but after a summer of restricted operation, all facilities were completely closed for the month of November – this was again followed by a short period of restricted operation before a gradual closure around Christmas which lasted for the remainder of the year.
“During the period of closure, the SLM Group relied heavily on its partnerships with local authorities, and in many cases, both through contractual mechanisms and an understanding that the problem should be shared with others. Through the partnership, improved management fees were collected which offset some of the effects. closures.
Despite this, turnover fell 62% from £ 247m to £ 95m.
To offset the impact of reduced turnover, the group made extensive use of the government leave scheme, with at one point in time over 12,000 employees, representing 99% of the total workforce, being supported. by the regime.
Bell explained that “strenuous efforts” have been made to reduce spending in all areas of business and that it was possible to limit losses suffered during the year to £ 11million, against profits of £ 9.4million in 2020.
Trade at another CVCH subsidiary, Cambuslang-based UIN Foods, has also been affected by Covid-19, with retailers streamlining counter lines in response to changing customer demand. This resulted in a significant reduction in volumes, compounded by production interruptions due to the absence of staff due to the pandemic.
As a result, turnover fell by £ 2.04million and resulted in a pre-tax loss of £ 176,872.
Bell said the focus for the current year “will be focused on growing volume with existing and new customers while maintaining a safe and efficient working environment for Covid.”
He continued: “The 12 months until March 2021 have been a year like no other and although we are by no means completely out of the pandemic, we anticipate a constant improvement in the business climate and have already seen a return to profitability.
“We can only wish better times to come and the virtual elimination of the virus that has caused such devastation to all businesses in our industry.”
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