Chris Blundell, director of Harrogate-based Providence Collection, makes his remarks announcing the company’s latest annual results, which have just been posted on Companies House.
During the year to August 2025, the company generated turnover of £3.9 million, representing an increase of 1.0% compared to prior year.
Gross profit increased by 8.2%, from £1,291,293 to £1,396,993.
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In comments dated May 28 2026, Mr Blundell said this reflected “improved cost control and operational efficiencies.”
The operating loss reduced by 7.6% year-on-year from £716,659 to £674,643.
The loss before taxation dropped from £1,393,212 to £1,279,440.
Mr Blundell continued: “Significant increases in labour costs and business rates were countered by both improvements in operational efficiencies as well as controlling overhead costs.
“In the coming year, the estate will be streamlined to ensure profitability going forward.”
The company has just announced the sale of The Black Bull at Moulton, The Punch Bowl at Marton-cum-Grafton and The Cleveland Tontine near Northallerton.
Mr Blundell also warned: “The group operates in a dynamic sector that is subject to a range of external and internal risks. The economic environment remains a significant factor, with hospitality businesses being particularly sensitive to inflationary pressures, fluctuations in interest rates, and shifts in consumer spending habits.
“Labour market conditions also continue to pose challenges. Recruiting and retaining skilled personnel, especially in rural locations, is increasingly difficult, with wage inflation and staffing shortages contributing to operational pressures.
“The full year impact of the increases to Employers National Insurance will impact ability to recruit and availability of staff.”
Over the year to August 2025, staffing decreased from 115 to 110.
Mr Blundell continued: “Regulatory changes also present a level of uncertainty, as the business must remain compliant with evolving legislation concerning health and safety, licensing, and employment.
“Seasonal variations and unpredictable weather further influence trading performance, particularly for rural sites that rely on tourism and local events.”
He added:” To manage and mitigate these risks, the group is focused on sound financial management, operational resilience, and the continued investment in team development and customer service. These measures aim to ensure the business remains agile and well-positioned for sustainable growth.”
Do you agree with Chris Blundell? What can government do to help our pubs and hotels? Is it to blame for any of these problems? Let us know in the comments below.
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