Convention Centre falls into red with €5.6m loss
Published 10/10/2015 | 02:30
The Convention Centre Dublin plunged to a €5.6m loss last year compared to a €16.1m profit in 2013 after a sharp fall in the value of derivative instruments it uses to hedge interest rates on its loans.
The company, Spencer Dock Convention Centre Dublin (SDCC), recognised a negative fair value movement of €13.2m due to the "adverse movement in the fair value of derivative financial instruments", the accounts note.
The firm posted an operating profit of €2.4m before that non-cash charge was included, which was 31pc lower than the €3.6m it reported in 2013. Revenue fell to €19.2m last year from €19.6m in 2013.
The performance in 2013 also related to just a 10-month period, with the latest set of accounts reflecting a 12-month period.
SDCC designed, developed, built and financed the centre. It also owns the licence to operate and maintain the building.
Earlier this year, the State-backed Irish Infrastructure Fund, which is managed by Irish Life Investment Managers, together with AMP Capital, acquired the concession to operate and maintain the centre.
That deal also included the long-term lease of a car park under the centre, as well as a licence to build and operate a 330-bed hotel on an adjacent site.
The chief executive of the convention centre, Nick Waight, conceded 2014 had been a challenging year, but said there had been a "strong recovery" in 2015, with revenues already 28pc higher.
"The pipeline for future business also looks strong for 2016 and beyond," he said. "The vision for the Convention Centre saw it as a strategic national asset rather than simply a business, and we are pleased to be delivering both a profit for the business itself, and wider benefits to the economy."