Hotel owner sure bank will roll up interest
Published 10/01/2013 | 05:00
HOTELIER Jerry O'Reilly of the five-star Aghadoe Heights in Killarney said yesterday he was confident his bankers will again roll up interest on loan payments to the business.
Accounts filed by his company, Dalegrove Taverns Ltd, that operates the five-star Kerry hotel, confirm that since early 2009 the company's bankers have rolled up the interest on company borrowings.
The figures show that the firm recorded a pre-tax loss of €790,779 in 2011 that followed a pre-tax loss of €780,565 in 2010. The loss takes account of non-cash depreciation costs of €448,801.
The company had bank loans and borrowings totalling €12.4m at the end of December 2011.
According to the directors' report, "the company has operated at an improved level of activity in 2011 due to increases in occupancy and room rates and the continued emphasis on cost reduction".
The abridged accounts show that the firm's gross profit increased from €2.59m to €2.9m.
The directors state that the increase in turnover and prudent cost management resulted in an operating profit before depreciation of €89,775 in 2011.
They said they were confident their actions plus continued support from the company's bankers and, where possible, the company's parent company, would ensure it will continue to trade as a going concern in the ensuing year.
Accumulated losses at the firm in 2011 increased from €10.9m to €11.7m.
The numbers employed by the company increased from 59 to 63, with staff costs increasing from €1.65m to €1.74m. The accounts confirm that Mr O'Reilly has given personal guarantees in respect of company bank borrowings.