The Courier & Advertiser (Fife Edition)
Cairngorm hopes high despite losses
The company set up by Highlands and Islands Enterprise ( HIE) to run the Cairngorm winter sports centre suffered losses of more than £1 million in its first 16 months of operations, its annual accounts have shown.
Cairngorm Mountain (Scotland ) (CMSL ) chairman Peter Mearns said its results reflected the costs of reopening and upgrading the centre after the previous operator, appointed by the development agency, went into administration, as well as the impact of the Covid19 crisis and loss-making ski seasons.
Mr Mearns added that the company expected to break even in future years, with the support of grant funding from HIE, which owns the Cairngorm estate.
The accounts, published by Companies House, showed that, between its establishment in November 2018 and the end of this March, CMSL recorded pretax losses of just over £1m and its turnover during the period was £1.16m.
The company was set up by HIE after leisure firm Natural Retreats UK placed its subsidiary, CairnGorm Mountain (CML), which had run the centre since 2 014 under a 25-year contract with the development agency, into administration two years ago.
CML’ s demise came within weeks of Cairn gorm’ s funicular railway, which carried visitors to the summit of the 4,084 ft mountain, being taken out of action on safety grounds after structural problems were found in concrete beams supporting the track.
Staff and assets of the failed firm were transferred to CMSL to keep the centre running, with the support of HIE’s own staff.
HIE’s initial funding for the rescue was in the form of share capital and loans, but CMSL is now primarily funded by revenue grants.
In his foreword to the accounts, Mr M earns admitted it had not been a “smooth” initial period for the company, and the two winter seasons to date were “challenging”.
He added: “The first, 2018-19 turned out to be one of the worst for snow in living memory and the whole Scottish industry suffered disastrously.
“In 2019-20 the snow was again late in coming, but by mid-February 2020 conditions were the best they had been in years.
“After all the hard work put in by staff to prepare the slopes, it was fantastic to see people flocking to the hills and enjoying themselves.
“Snow cover was such that we anticipated snow sports running until at least Easter, bringing visitors to the mountain and much-needed revenue to the company. But, of course, a global pandemic had been ominously spreading and the leisure and tourism sectors have been among the hardest hit.
“In March 2020 it was necessary to close our facilities and the majority of staff were put on to the UK Government’s furlough scheme.”
He said the centre, which employs around 60 people, had since been able to reopen, and, with a Covid19 management plan in place, “catch part of the summer tourist season”.
Last night an HIE spokesman said: “The past two years have been exceptionally challenging for Cairngorm and that is clearly reflected in these accounts. However, with the reinstatement of the funicular railway now in progress, and a new masterplan in final stages of preparation, we are confident Cairngorm is turning the corner and can look forward to a much brighter future.”