Profits decrease by 35pc at west's landmark Skeffington Arms Hotel
Published 27/07/2016 | 02:30
Pre-tax profits at the Skeffington Arms Hotel in Galway City fell by 35pc to €519,435 last yaer.
The landmark hotel, situated in Eyre Square in the heart of the city, is currently enjoying one of its busiest weeks of the year with the Galway Races in full swing.
New accounts filed by Skeffington Arms Ltd show that gross profit decreased by 8pc from €4.54m to €4.38m.
According to the directors' report, "the results for the year and the financial position at the year end were considered satisfactory by the directors who expect growth in the foreseeable future".
They state that "the company is well positioned within the hotel and leisure industry and hope to grow their market share in the future".
On the firm's future plans, the directors state that "the company plans to offer more midweek and weekend packages to try and attract more people to the hotel as well as planning an update and refurbishment of the nightclub".
The figures show that the firm recorded an operating profit of €657,714, and interest payments of €138,279 reduced the profits to €519,435. The firm's profits declined last year after a jump in administrative expenses going from €3.6m to €3.723m.
The firm's accumulated profits totalled €5.9m last September that included cash of €587,278. Shareholder funds totalled €9m. The company's tangible assets have a book value of €6.5m.
Numbers employed increased from 98 to 102 with staff costs totalling €2.18m. Remuneration for the three directors, John Callanan, Siobhan Howley and Nicola Dalton, last year decreased to €288,578.
The profit for the Skeffington Arms coincides with Mr Callanan's other hotel firm, Callanan Hotel Ltd that operates the Prince of Wales hotel in Athlone, reducing its accumulated losses. Accounts just filed by Callanan Hotel Ltd show that it recorded a profit of €195,610 in 2015.
Accumulated losses stood at €17m at the end of last September.