Rockcliffe Hall near Darlington reveals seven figure pre-tax loss

LUXURY hotel, spa and golf resort Rockcliffe Hall has recorded a seven-figure pre-tax loss in its latest financial results.

The five-star complex’s company results for the year ended June 30 last year showed narrowing pre-tax losses of £1.44m down from £1.57m in 2013, despite a 9.2% leap in total net revenues year-on-year.

Uncertainty ahead of the general election and a weak market outside the South-east are key ‘risks’ for the coming year, the report claims - but on-going increases in memberships ‘would benefit the monthly revenues’.

Rockcliffe Hall, near Darlington, opened in 2009 and is owned by Boro supremo Steve Gibson’s company, Gibson O’Neill, which is also the parent of Middlesbrough FC and Teesside transport firm Bulkhaul.

Turnover for 2014 was £9.72m compared to £8.9m in 2013, with increases across golf, accommodation, food and drink and the spa. Gross profit was £8.2m, up from £7.54m in 2013.

The resort also grew its staff by 11 in 2014, taking the headcount to 284.

With cost base remaining ‘reasonably static’, continued improvement would position the business to ‘expand profitability’ going forward, according to directors Warwick Brindle, who is also chairman, Jeremy Bloom and Mr Gibson.

Room occupancy, the report claimed, was ‘healthy’ at 74.5% compared to 66% in 2013, but average room rates achieved were ‘lower than desired’ - a result of competitive price pressure experienced in the market.

The leisure business continued to ‘perform well’, the report said, comprising 64% of overall revenues (60% in 2013) with the Spa showing overall revenue growth of 11%.

Director Steve Gibson said: “General business conditions remained competitive, however total revenues grew 9.2% year-on-year.

“Conference and corporate business performance remained challenging, particularly in the last quarter with the impact being translated into lower food and beverage sales.

“Golf revenues remained difficult as again the market is being driven by price, although membership did continue to increase.

“The market outside of London and the South-east is still not showing signs of strong growth. This is placing barriers to improving average room rates and driving occupancy levels.

“Risk is a downturn in the economy from a period of stability led by uncertainty moving toward the General Election.

“This could affect the disposable income in the leisure sector particularly.

“Other regional and local uncertainties mainly surround the investment being made by two major competitors ( Ramside Hall and Seaham Hall) in their properties and the impact this might have on continued growth in the leisure part of the business.”

Overall, the Gibson O’Neill group made a pre-tax profit of £5.91m in the 12 months to June 30 last year.

It expects Rockliffe Hall to deliver an operating profit in the coming financial year.

The resort marked its fifth anniversary in October with the appointment of chief executive Eamonn Elliott.