PROFITS of almost £700,000 have been reported by the owner of restaurant and hotel business group in its first set of results since the venture was subject to a multimillion pound rescue deal.

Sales of £4.7 million have been posted by the parent company of the grade II-listed Crab Manor Hotel and its restaurant the Crab & Lobster, in Asenby near Thirsk, and Trenchers fish and chip restaurant and takeaway in Whitby.

The businesses are owned operating by Kymel Trading, a group owned by North East entrepreneur Paul Mackings, which has reported its accounts for the year from October 4, 2013 to December 27, 2014.

The results are the first since Mr Mackings paid £4.5 million to buy the assets back from the administrators of his Vimac Group as part of a rescue deal after the business struggled with debts of £15 million, built up when it was a larger concern.

Within an accompanying strategic report, Mr Mackings said he was confident the group's quality offering, allied to the financial strength of the business, would lend the business an edge over rivals in the competitive restaurant and short break accommodation sectors.

Since the year-end, the group has been granted planning permission to extend the Crab Manor Hotel with a two-storey annex, incorporating three additional rooms.

The hotel currently has 17 themed rooms located either in the 18th century Georgian manor house or within buildings in the grounds of the hotel and restaurant.