Mount Errigal suffers losses of €3.7m
Published 28/01/2011 | 05:00
THE high-profile Mount Errigal Hotel in Donegal racked up losses of €3.7m in 2009, according to accounts filed with the Companies Registration Office.
The 140-room, three-star hotel saw turnover fall just under a quarter between 2008 and 2009, but a squeeze on margins saw operating profits plunge almost 80pc from €215,000 to €48,000. However, the losses were incurred as a result of a €3.6m writedown in the value of property investments between 2008 and 2009, though the hotel continued to trade profitably.
Accounts filed for the company showed the valuations for fixed assets, including investments, dropped from €16.9m to €12.8m.
Uncertainty over the hotel's access to bank loans and the impact of the current economic situation "casts significant doubt upon the company's ability to continue as a going concern", the company said in a note filed with the accounts.
Despite the uncertainty, the directors said in a statement included with the filing, that they have a reasonable expectation that the company has the resources to continue to operate for the foreseeable future.
The directors were unavailable to comment on the details of the accounts yesterday.
The accounts revealed a valuation of €1.3m at the end of 2009 for property investments valued at €3.66m in 2008.
The company's other tangible assets were written down from €13.2m to €11.5m.
The company's directors are listed as Terry McEniff and Lorretto McEniff. In a note signed off in September and filed with the accounts, the directors said that they are in negotiations with their bankers regarding securing long-term financing.
The hotel had outstanding bank loans of €6.6m at the end of 2009, but the loans do not fall due in the next five years.
AIB holds a mortgage over the hotel.