Stirlingshire’s Castle View sees profits hit by wage and NI costs: turnover jumps
“The year to March 2025 was challenging and current trading continues to be so” – Martin Bell, CEO
Castle View Corporate Holdings, the Bridge of Allan-based mini-conglomerate whose interests include sports centre management, food production and public health services, has blamed inflation and wage pressures for a fall in profits.
The group saw an increase in turnover to £393.7 million in the year to the end of March 2025, from £358.75m in the previous 12 months. But the firm’s latest accounts also reveal a 19.4 per cent decline in profit before tax, from £35.77m to £28.26m.
In the latest period under review, the group’s principal subsidiary, Leicestershire-headquartered Sports and Leisure Management (SLM), operated 225 sites on behalf of English local authorities and saw sales rise to £369.8m, compared to £335m in the previous year.
In the course of the year SLM won three new contracts - North Hertfordshire, South Derbyshire and the City of Sheffield - comprising, in total, 14 sites. A further four contracts have been secured in the current financial year.
Chief executive Martin Bell said: “The year to March 2025 was challenging and current trading continues to be so. Despite the rise in turnover, the decline in pre-tax profit reflects the difficulties of the current economic climate, the result of increasing wage pressures, inflation and a volatile utility market which combined to increase costs significantly.”
In the year, the group paid the Exchequer just short of £48m in corporation tax, VAT and employment taxes. The increase in national insurance contributions will lift this sum significantly in the current year. A total of £19m was allocated to capital expenditure, mainly gym equipment and site improvements.
Group subsidiary Cambuslang-based Uin Foods Limited saw a decline in turnover from £15.06m to £13.78m following the loss of a contract with Lidl. Tighter financial controls and “intense management focus” resulted in a pre-tax profit of £1.079m compared to the previous year’s £980,000.
Bell added: “Market conditions remain as challenging as ever and the focus for the coming year will be around continued sales growth and production efficiency, with particular focus on mitigating ever increasing labour costs, whilst maintaining a controlled fixed cost base.”
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