Dublin hotel firm records loss of €15.5m after loan write-off
The firm that operates the Regency Hotel in Dublin plunged into the red in 2013 to record losses of €15.5m.
The loss by Regan Development, which operates the 240-room hotel, arose from the writing off of €15.89m owed to the firm by a connected company. The accounts show that before the exceptional cost is factored in, the firm's operating profits fell by 68pc to €432,985.
The directors said sales at the hotel improved by 29pc from the prior year due to increases in room and occupancy rates within the Dublin market.
The hotel, located in the Whitehall area, is in close proximity to Dublin airport.
The report states: "The improved results in the hotel trade mirror market trends within the Dublin area and based on management accounts these positive results are predicted to continue."
The firm also operates a supermarket and the directors' report states that "the trading results of the supermarket are predicted to be challenging for the foreseeable future".
The directors of the company are listed as James McGettigan, Patricia McGettigan, Brian McGettigan, Maureen O'Connor, James McGettigan Jnr and Neil McGettigan.
The firm's gross profit in 2013 fell by 28pc to €3.67m. Distribution costs of €2.26m and administrative expenses of €976,707 reduced the firm's profit to an operating profit of €432,985. The firm's profits were further reduced by interest charges of €60,790.
The accounts show that the total losses for the year amount to €16.2m, taking into account of impairment charge of €634,221 and a write down of €105,286 on an investment property.
The property impairment in 2012 followed a €18.6m property impairment in 2012.
At the end of December 2013, the firm had accumulated profits of €30.2m. After taking into account a revaluation reserve deficit of €19.3m and other reserve deficit of €1.66m, the firm had shareholder funds of €9.47m. The cash pile in 2013 rose from €161,949 to €246,639.
Numbers employed by the firm fell from 140 to 130 with staff costs declining marginally from €3.18m to €3.17m. Remuneration for directors reduced from €646,604 to €244,438.
On the company's going concern status, the accounts state that Nama has renewed the firm's loan facilities on broadly similar terms.
The note states that "failure to successfully review bank facilities would have material adverse consequences for the company, thereby casting doubt on its ability to continue as a going concern".
However, the note later adds that "based on the cash flow projections and the key assumptions, the board believe that the company will have sufficient cash... "to meet liquidity requirements for at least 12 months from the date of the approval of this report."