Malhotra Group invests despite seeing profit fall

NORTH East property, care and leisure company Malhotra Group has highlighted continued investment across the company after a year in which revenues grew but profits fell.

- COREENA FORD Business writer [e-mail] @Scoopford

The Newcastle business - which owns and operates a number of bars, restaurants and hotels, including Grey Street Hotel, The Three Mile and The Runhead - has published accounts for the year ended March 31, 2025, showing a 10% lift in turnover to £63.4m. Operating profit dropped 38% to £6.3m, and shareholders’ funds increased by 4.4% to £98.9m.

The group, which saw employee numbers rise from 1,367 to 1,473 in the year, highlighted a number of challenges affecting the wider economy which have impacted the group's divisions, including staff recruitment and retention, rising costs and shifts in consumer trends.

However, it said its diversification was proving vital to strengthening the group for the future.

A report within the accounts said: “We continue to invest in a significant capital expansion programme across both the care and leisure sectors to continue to improve the quality of services across our business.