K Club records €3.72m pre-tax loss in 2013
Published 10/04/2015 | 02:30
Pre-tax losses at the group that operates the five star K Club totalled €3.725m in 2013, new figures show.
According to new accounts filed by Bishopscourt Investments and subsidiaries, the group recorded the loss in spite of revenues increasing from €11.6m to €11.9m in the 12 months to the end of December 2013.
The directors' report states that subsequent to December 2013 "the group has incurred further losses on ordinary activities after interest".
The loss in 2013 followed a €7m pre-tax profit in 2012 that arose from the mix of an exceptional gain of €30m and a fixed asset impairment of €16.2m.
The resort is currently undertaking a €20m expansion being built by Bernard McNamara that includes an additional 70 bedrooms. Revenues at the resort rose by 10pc to around €13m and its chief executive, Michael Davern, said in a recent press interview that the K Club was 'operationally breakeven' in 2014.
The extension at the hotel, outside Straffan, Co Kildare, is due to be complete this August. The 2013 loss takes account of interest payments of €738,365.
The 2013 loss also takes account of non-cash depreciation costs of €2.734m.
Numbers employed at the Michael Smurfit-owned resort that staged the 2006 Ryder Cup stood at 144 in 2013 with staff costs totalling€4.84m.
The directors updated the property's value to €64.4m.