Losses double at Islay’s Machrie golf course and hotel

The four-star Machrie – which has 43 rooms, suites and family lodges along with a number of other amenities such as the golf, a restaurant, and an outdoor sauna and hot tub garden – made a pre-tax loss of £4.8m during the year to January 31, up from the previous year’s loss of £2.1m. Turnover declined marginally to £3.5m.

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The directors’ strategic report further states: “Cash balances have decreased on the prior year to £148,000 (2024 – £199,000), with continued support provided by the company’s parent Another Place Limited.”

Originally designed by Willie Campbell more than 130 years ago, the 71-par course and hotel went into administration in 2010 after running into financial difficulties.

The business was purchased in June of the following year by Machrie Golf LLP, a partnership created by former BBC chairman and ex-Goldman Sachs chief Gavyn Davies and his wife, Baroness Sue Nye, a former political secretary to Gordon Brown. The couple invested in upgrading and expanding the operation before it was sold in 2023 to boutique hotel group Another Place.

Another Place is in turn owned by holding company Actev II Ltd. Mr Davies and Ms Nye are both listed as “persons with significant control” and directors of Actev II.

The four-star Machrie offers 43 rooms, suites and family lodges (Image: Another Place)

The Machrie was re-launched in August 2024 under the Another Place banner, becoming the second property in the group’s portfolio along with The Lake in Cumbria. During the year to the end of January 2025, Another Place made an operating loss of £2.2m on turnover of £12.9m.

Directors said costs at The Machrie were “managed well despite the cost-of-living crisis” with an improvement in the profit margin to 89.3% versus 87.8% previously. Administrative expenses rose to just shy of £8m with nearly all of the increase due to the £2.76m impairment on the carrying value of the freehold property.

Directors added that “steps have been taken to reduce the quantum of loss in the current financial year”, with additional improvements expected in “further years”.

The Machrie was named the best course in the £100 to £250 category at this year’s Scottish Golf Tourism Awards. In addition to the championship links there is also a six-hole par-3 course, a covered driving range, and a 19-hole “social golf” putting green called The Hebrides that opened earlier this year.

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The business is run by general manager Alan Martin and employs 65 people, making it one of the largest employers on Islay. Its funding arrangements were detailed in the notes to last year’s accounts.

“Another Place The Machrie Limited is supported by its parent undertaking, Another Place Limited. In turn Another Place Limited has support from its investor shareholder, being Actev II Limited.

“The support from the parent undertaking, Another Place Limited, and the investor shareholder, Actev II Limited, will take the form of inter-company loans which will be given as and when they are needed.”

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In assessing the going concern assertion, managers were said to have taken account of “ongoing economic uncertainty”. Cashflow forecasts and performance against budget are tested against varying assumptions about the state of the travel and tourism market.

“After due consideration of these factors, the directors are satisfied that the group will be able to operate within its available facilities and continue as a going concern for the foreseeable future,” they added.

Representatives of Another Place have been contacted for comment.