(Image: Getty Images)
A major Scottish pubs and clubs company has reported a decrease in profit despite a rise in sales.
The Scotsman Group Plc, founded by entrepreneur Stefan King, posted a drop in operating profit of almost a third.
The Glasgow-registered company unveiled the results in accounts and strategic report for the year ended March 31, 2026.
Revenue was £61 million in the last year, up from £58m the year before, a rise of over 5%.
The operating profit of around 32% was £4.6m, set against £6.7m, in the prior period.
The directors said in the strategic report: “The company is a subsidiary of Scotsman Holdings Plc and … these financial statements therefore present information about the company as an individual undertaking rather than about its group.”
The company, formerly the G1 Group, said: “The directors are satisfied with the performance of the business.”
The firm said the directors noted performance indicators “that are key to the ongoing trade of the business”.
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There was an overall drop in profit from £2.4m to £427,528. The accounts also showed an increase in administrative costs from £3m to £6m, and a greater tax commitment.
At the end of the year, net assets were £46m, compared with £45m.
Pubs and clubs giant founded by Scottish entrepreneur unveils (Image: Getty Images)
Related subsidiaries include the Corinthian Clubs Limited, Iona Pub Partnership (Scotland) Limited, Café Drummond (Aberdeen) Limited and Scotsman Hospitality Limited.
The directors said in the strategic report: “The company operates and owns multiple units with the remaining activity relating to group head office and corporate functions thereby incurring many costs.
“There are no intentions for the principal activity of the company to alter in the next financial year. The company participates in centralised group treasury arrangements and therefore shares banking arrangements with its subsidiaries."
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The directors "have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the company to continue as a going concern or its ability to continue with the current banking arrangements".
“ Based on the forecasting performed the directors are confident that the actions and strategies in place which will allow the business to continue to trade strongly.
“Further, the directors have assessed the business risks and are confident that actions and strategies are in place to mitigate these and ensure continued trading.”
The directors added: “Operating in the leisure market, the most significant risk is customer demand in an extended period of economic uncertainty.
“Other risks include changing regulatory requirements such as health and safety legislation, the impact of inflation on costs, and reduced disposable income.
“The group reviews these and other exposures on a continuing basis and the directors believe that with the group's widely diversified portfolio along with the significant purchasing power, it can mitigate these exposures.”
Full list: Subsidiaries and related undertakings for the year ended March 31, 2026
- Cairnstar (Perth) Limited
- Iona Pub Partnership (Scotland) Limited
- Gift Ideas (Scotland) Limited
- IP Partnership Ltd
- Café Drummond (Aberdeen) Limited
- The Dolphin (Dundee) Limited
- Stirrup Stane (Livingston) Limited
- Dixon Arms (Glenrothes) Limited
- Corinthian Clubs Ltd
- Iona Pub Partnership (2017) Limited
- Student Space St Andrews Limited
- Woolmanhill Properties Limited
- Skerryvore Limited
- Kilrymont Developments Limited
- Scotsman Hospitality Limited