A month ago, we delivered an article which talked about our latest publishing of accounts within Companies House, for the year which ended way back in April 2023. We had a financial loss that year, but writing the article approaching a further year onwards we have greater optimism based on a further three quarters of a year of new and fully up-to-date management accounts.
Not sure if the future-forecasters at Plimsoll Analysis are reading our ongoing blog articles, but we have very good news today for Balbirnie House!
We are informed that financial results for 328 UK wedding venue companies were analysed via Plimsoll. Within these, only 62 companies were rated as strong.
Balbirnie House Hotel Ltd is categorised as Strong.
Following all pandemic challenges, and all industry financial challenges thereafter, we are truly and absolutely delighted to see Balbirnie House rated financially in the Strong category.
More bluntly put however, only 18% of such companies are rated as Strong. Which therefore means that 82% of UK wedding venues are not categorised as strong.
In further consideration, 253 companies out of 328, are categorised as either Mediocre, Caution, or Danger. This equates to 77%.
In even further consideration, 179 companies out of 328 are categorised as Danger. This equates to 55%. And that, is a very sad but fully realistic assessment of the reality of the UK wedding venue sector today.
Fundamentally therefore, 2024's newly engaged couples who are looking for a future UK wedding venue for 2024, 2025 or 2026 (or beyond), are currently considering a range of wedding venues, with 55% of those venues already in financial Danger, and 77% of venues classified as either Mediocre, Caution or Danger. This is a truly staggering and unfortunate set of statistics for the UK 2024 wedding venue industry.
Stating the reality as well, banks tend not to lend money or otherwise continue to support companies which are seemingly destined to fail. And that is when venues have no choice other than to discontinue. It all very simply underlines why governments need to do more today, to support the hospitality industry.
I also highlight that geographically the challenges are even more epic in Scotland alone, as the Scottish government has not provided the same two year Business Rates Relief, as has already been applied in England. (The two year saving that Balbirnie House would otherwise have experienced, would have been £172,500 - as I was recently asked to write about specifically for this business article via The Courier.)
Over the Balbirnie decades we have met with many visiting couples who have been holding wedding bookings elsewhere, only to find that the other venue is needing to close effective immediate, and the couple urgently need to find a new replacement wedding venue, and that is of course to say the very least a very highly stressful scenario for any couple.
The ongoing 2024 financial challenges across the entire UK hospitality sector are all extremely well documented and self-evident across the span of media today.
Most helpfully intended, best advice today for any couple looking at any UK wedding venue company for any future wedding (or indeed for event organisers and the generality of special events), prior to paying any deposit, is to ask the venue for any information they can provide with regards to published accounts, current financial status, and opinion on ability to be remaining in trading business through to the intended date of the special event/ wedding celebration itself.
Fundamentally of course, any couple booking a future wedding venue most ideally want to be brimming with the joy of the venue itself, and to then be able to enjoy the journey of planning and approaching the celebrations.
Whilst none of us in the hospitality sector actually has a financial crystal ball, at Balbirnie House we are certainly progressing into the future with renewed financial optimism.
To arrange a visit to Balbirnie House E: leah@balbirnie.co.uk
With all best wishes,
Nicholas
MD Balbirnie House
