Hotel highlights 'social media' challenge as profits slide
The directors of a well known Galway hotel have identified 'social media' as one of the challenges facing the business.
The directors of the Skeffington Arms Hotel in Galway highlighted the issue when reporting that pre-tax profit dipped marginally from €527,857 to €515,411 last year.
The hotel is set to enjoy a bumper July with the staging of the Galway International Arts Festival and the Galway races at the end of July and early August.
The new accounts filed show that the firm recorded the drop in pre-tax profits after its gross profit increased by 2pc going from €4.38m to €4.47m in the 12 months to the end of September last.
According to the directors' report "the results for the year and the financial position at the year end were considered satisfactory by the directors who expect growth in the foreseeable future".
They state that "the company is well positioned within the hotel and leisure industry and hope to grow their market share in the future".
On the problems faced by the company, the directors state they include "technology and social media, increasing costs of operations and high levels and intensity of competition".
On the firm's future plans, the directors state that "the company plans to offer more mid-week and weekend packages to try and attract more people to the hotel as well as continuing the refurbishment of the nightclub which the directors committed to in early 2015".
The firm's profits declined last year after a jump in administrative expenses going from €3.72m to €3.798m. The firm's net interest costs last year increased to €146,067.
The firm's accumulated profits totalled €5.6m last September that included cash of €445,667.
Shareholder funds totalled €8.7m. The funds included 'other reserves' of €3.12m.
The company's tangible assets have a book value of €6.89m.
The numbers employed by the firm reduced from 102 to 98 with staff costs decreasing marginally from €2.18m to €2.16m.
Remuneration, including pension contributions, for the three directors, John Callanan, Siobhan Howley and Nicola Dalton last year decreased from €288,578 to €282,639.
No dividend was paid last year
Mr Callanan also operates another hotel, the four-star Prince of Wales hotel in Athlone.