Former Quinn hotel posts €3.9m in pre-tax profits
THE former Sean Quinn hotel that was the setting for daughter Ciara Quinn's lavish wedding recorded pre-tax profits of €3.9m last year.
The Slieve Russell hotel in Co Cavan hosted the 2007 Quinn wedding that included a six-foot tiered wedding cake for the 400 guests that was baked in New York and then packed into 20 boxes before being flown to Ireland.
However, with the collapse of the Quinn empire, the Irish Bank Resolution Corporation, formerly Anglo Irish Bank, assumed control of the Slieve Russell hotel when a share receiver was appointed to the hotel firm in April 2011.
New figures show that the hotel recorded the profit last year after €4.8m in loans due to a connected firm were waived as part of a group restructuring.
The pre-tax profit follows a modest pre-tax loss of €30,000 in 2010. Revenues at the firm increased marginally from €13.29m to €13.34m, with operating profits before exceptional items dropping from €1.73m to €831,000.
The directors state that "reduced activity in the hospitality sector continues to present challenges for the group. However, there is a continued strategic focus on cost management to ensure that the group remains competitive within the hospitality sector".
According to the directors' report, "the group's 2012 budget indicates that a positive earnings before interest, tax, depreciation and amortisation (EBITDA) of significantly over €1 million will be achievable".
The report adds: "Management forecasts and cash flow projections also indicate that the group is expected to generate positive cash flows on its own account through the rest of 2012 and into 2013.
"However, the current economic climate is difficult, and the directors consider that the outlook presents considerable challenges in terms of sale volumes and pricing as well as input costs."
The consolidated accounts for Slieve Russell Hotel Ltd show that the group's profit reduced the group's accumulated losses to €48.7m last year.
The figures show that interest payments totalling €1.7 million reduced the firm's profits to €3.98m last year. The firm still owes €65m to IBRC.