Profits fall to €295,000 at Lough Eske Castle hotel
Published 09/02/2016 | 02:30
Pre-tax profits at the firm that operates the five-star Lough Eske Castle hotel in Co Donegal fell by 60pc to €294,552 in 2014.
The hotel is owned by the Donegal man Pat Doherty's Harcourt Developments property group.
The group also built the Titanic Belfast tourist attraction.
Harcourt Developments has unlimited status and is not required to file accounts.
But accounts filed by Lough Eske Developments Ltd with the Companies Office show that the hotel recorded the drop in profit in spite of revenues rising from €6.75m to €7.5m in the 12 months to the end of December 2014. The hotel had pre-tax profits of €738,081 in 2013.
According to the directors' report, "2014 was another positive year for the hotel. Turnover increased by 11pc and the hotel has remained profitable."
The directors point out that the profit for 2014 takes account of non-cash depreciation costs of €670,450. Numbers employed at the hotel rose from 134 to 146 with staff costs increasing from €3.34m to €3.52m. Accumulated losses last year fell from €6.68m to €6.39m.
A note attached to the accounts points out that the firm had a deficit position on its balance sheet of €6.39m at the end of December 31, 2014.
The note states: "Group cash flow projections for the parent company, Harcourt Developments Ltd, have been prepared for the next 12 months which show sufficient headroom for the group to meet debt service obligations and overhead running costs." The note states that on this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.
The company's net debt at the end of December 2014 fell from €32.13m to €31.17m.