A LEADING, PRIVATELY owned North East company has achieved PLC status, following on from a three year rationalisation process across all of its business interests.
Newcastle-based Malhotra Group PLC, which operates in the leisure, property and care home sectors, brought together its 26 companies and partnerships and consolidated them within one group.
The Group, originally established through its founding company in 1991, has become a North East success story with a turnover that has seen growth year on year, from £19.5m in 2013 to £22m in 2014 and to a predicted £25m this year.
Currently employing around 1000 people, the Malhotra Group has already embarked upon a major five year expansion plan which should see staff numbers double by 2020.
Malhotra Group, which now includes a second generation family member on the Board, is part of Malhotra Family Holdings which has interests in both the UK and in India.
The shares in Malhotra Group PLC remain privately owned by the Malhotra family, although the opportunity for them to be bought by the public will be offered in the future.
The company owns and operates a range of hotels, bars and restaurants in and around Newcastle, along with ten care homes in the North East, with a further two in the pipeline.
In addition the Malhotra Group also owns a large commercial property portfolio, with a range of blue chip tenants such as RBS, Barclays Bank, Vodaphone and Pret a Manger occupying their many high street and city centre locations nationwide.
‘’We have always had a plan to acquire and develop underperforming assets and bring them to their fullest potential,’’ said Meenu Malhotra, Group Chairman.
‘’We now own prestigious buildings across a number of prime sites, as well as market leading care homes and leisure outlets, and our plans over the next five years will see the Group become a major force in these key growth sectors.”
The company started building its portfolio in 1991, with the acquisition of the old Parrish’s department store in Newcastle, with the upper floors subsequently turned into student accommodation.
Their first foray into the care home sector also began in 1991, with the acquisition of an existing home in Birtley, County Durham followed swiftly by another Care Home purchase in Sunderland in 1992.
Steady growth continued over the years, with the company taking its first steps into the leisure industry in 2004 with the acquisition of a Newcastle city centre pub.
By 2014 the Malhotra Group had taken over the New Northumbria Hotel and the Grey Street Hotel in Newcastle, The Three Mile Inn pub and restaurant on the outskirts of the city and developed a number of new care homes, along with running one of the country’s top back packers hostel, The Albatross.
Throughout this period the property portfolio was also developing, as the company purchased underperforming assets and brought them into the group.
Future plans for the care home business include the development of two new homes, one at Melton Park, Gosforth, Newcastle which is due to open in August with 67 beds and an 88 bed care facility on the site of the former Alnwick Bus Depot in Northumberland.
Work on the latter is due to begin in the spring, with a projected opening in 2016.
Future developments in the leisure sector include the refurbishment of Newcastle’s Grey Street Hotel and the recently acquired Rex Hotel in Whitley Bay, plus a 67 bedroom hotel to enhance the existing offering at the Three Mile Inn, Gosforth.