Doonbeg owners 'confident' despite €6m loss
Doonbeg golf resort
Tuesday November 17 2009
The US-owners of the exclusive Doonbeg golf resort said yesterday that they remained "totally confident" the project would succeed in spite of a €6m loss last year.
Accounts just filed with the Companies Registration Office show that Doonbeg Golf Club Ltd lost €6m in 2008 -- in spite of increasing turnover by 35pc, from €14m to €19m.
Townsend Clarkson, chief operating and finance officer of parent company Kiawah Development Partners, said yesterday that Doonbeg did not meet its 2008 goals due to the global recession and the weak US dollar, but had performed well under the circumstances.
He added: "Of the pretax loss of €6m, depreciation and other non-cash items were €3.5m -- leaving the true loss at €2.5m."
Those seeking full membership at the Co Clare club must pay $75,000, while green fees for the Greg Norman-designed course are €200 -- although discounts are available on both.
The resort's finances were boosted this year by the wedding of singer Andrea Corr in August -- and Doonbeg will stage 17 weddings this year compared to six last year.
Mr Clarkson said: "Our initial forecast anticipated five years of subsidy for Doonbeg. The downturn has extended this by possibly another two to three years. We are, however, totally confident in the long-term success of Doonbeg and will continue to give it every support."
To date, Kiawah Development Partners has invested €62m in the project and has secured €73.5m in sales of 68 suites at the resort. The accounts show that their accumulated losses on Doonbeg at the end of December last were €35m. However, Mr Clarkson said: "Of this amount €18.2m was depreciation and other non-cash items, leaving approximately a €16.8m loss."
"Prior to the recession we anticipated that we would be in a break-even position or better for 2010. Now the timing of achieving break-even will be dependent on the timing and strength of the economic recovery, but hopefully not extended more than an additional two years."
- Gordon Deegan
Irish Independent
