By Scott Wright

THE company that owns the five-star Old Course Hotel in St Andrews has underlined the “risk” posed to staff recruitment and retention by Brexit and Covid while highlighting the impact of the weak pound, as new accounts show it returned to the black in 2021.

Accounts for The Old Course Limited, which is 99.8 per cent owned by Kohler Scotland, said revenue increased by more than 200 per cent to £25.8 million in the year ended December 31, after trading was boosted by the lifting of Covid restrictions.

That helped the business, which also owns luxury properties in and around St Andrews, to return a pre-tax profit of £3.6m, following a loss of £7.1m in 2020. Profits were also boosted by a tax credit of £2.49m, the accounts show.

READ MORE: Glasgow whisky ‘nerds’ set for maiden malt launch

The directors used the accounts to highlight the “global uncertainty” arising from the UK’s exit from the European Union on January 31, 2020, with the end of freedom of movement of people between the UK and EU nations constraining its ability to recruit.

It comes after Rebecca Brooks, managing director of Abbey Travel, last week called on the UK Government to relax immigration rules to help the tourism and hospitality industry access the skills it needs. Ms Brooks said an ongoing shortage of staff was compromising service standards in Scotland.

“Due to global uncertainty surrounding the UK’s exit from the EU, as well as Covid-19, the directors recognise potential risk in the recruitment and retention of casual staff in 2021 and beyond,” writes Karger David Kohler, director of The Old Course Limited, in the accounts.

“The weakening pound presents a risk of increased costs to the company but could also stimulate overseas tourist numbers visiting the UK. The hotel has reviewed its rates of pay to attract and retain local talent following the departure of the Eastern European workforce and has an established network in order to manage the staffing of the resort.”

READ MORE: State-backed Scottish bank makes loss as pay-off for former boss revealed

The company, which is incorporated in Scotland though ultimately owned by US-based Kohler Co, states that business performance has continued to improve following the reopening of the hotel following the latest phase of restrictions on April 26, 2021.

But Mr Kohler highlighted competition in the UK and international resort markets as a “continuing risk for the company, particularly against the backdrop of the current economic climate.”

He added: “The company manages these risks by investing in superior quality products and services in an effort to distinguish itself from its competitors.”

The accounts for the hotel group were published shortly after the death of director Herb Kohler, the US businessman who acquired the Old Course hotel in 2004 and passed away in September, aged 83.

READ MORE: Murray Capital hails recovery of metals business as profits soar

Mr Kohler served as chief executive of Kohler Company, the company established by his father Herb Sr, for more than four decades, during which time he expanded beyond the plumbing industry into the world of golf. He established the renowned Whistling Straits venue in Wisconsin, which has hosted major events such as the Ryder Cup and PGA Championship, in 1998, before ultimately passing the baton on to son David in 2015.

The accounts cover a period before the 150th Open Championship was held at the Old Course in St Andrews in July, which is likely to have boosted occupancy and revenue in the town.

Karger David Kohler writes in the accounts: “The underlying trading revenue of The Old Course Hotel, Golf Resort and Spa has increased due to both the re-opening of the facility following the relaxation of Covid-19 restrictions and the sales of a number of luxury apartments.

“Overall revenue has increased by 209.7% compared to the prior financial year. In addition, the company benefited from a tax credit of £2,490,200, which further boosted [the] company’s profit for the year, totalling £3,607,319."

The accounts show The Old Course Limited employed an average of 360 people over the period, down from 382 the year before.

Overall payroll costs dropped to £6.04m from £6.3m.

The Royal and Ancient Golf Club of St Andrews (R&A) holds a 0.1% stake in the company.