Adare Manor loses €2.77m by staging costly Irish Open
An Adare-based company controlled by Irish-American businessman Tom Kane incurred losses of over €2.77m due to staging the Irish Open at Adare Manor in 2008 and 2007.
The losses are confirmed in accounts just filed by Adare Manor Ltd to the Companies Office. The company recorded a pre-tax loss of €1.5m to the end of December 2009.
This compares to a loss of €3.2m in 2008 which included exceptional losses of €1.39m relating to staging the Irish Open. This followed the exceptional losses of €1.38m connected to staging the European Tour event in 2007.
The Irish Open is without a sponsor this year after telecommunications company 3 withdrew from sponsoring the event and the competition is to be held at Killarney in July.
The figures show that Tom Kane and family members own 76.25pc of Adare Manor Ltd, which operates the Carriage House restaurant at Adare Manor and holiday villas in the estate along with the provision of construction activities.
Commenting on the 2010 performance of the five-star hotel, a spokeswoman last night said: "2010 has seen a significantly stronger performance, versus 2009. Overall bookings are up on last year, with the hotel, holiday villas and golf course, reporting an increase in the number of guests.
"The Adare Manor Hotel & Golf Resort hosted the successful 2010 JP McManus Invitational Pro-Am, and generated interest from a new clientele by playing host to 'the X Factor' and Louis Walsh."
She confirmed that Adare Manor Ltd returned to profit last year. The abridged accounts for the firm don't provide a turnover figure, however they confirm that gross profit reduced by 11pc from €2.1m to €1.9m to the end of December 2009.
Staff costs and other operating expenses totalling €3.4m resulted in the company recording an operating loss in 2009 of €1.5m.
The figures show that the numbers employed by the company during the year reduced from 51 to 33, resulting in staff costs decreasing from €1.25m to €1.05m.
The directors' report states that "turnover in the business has decreased on the prior year and the directors implemented cost saving measures".
The report says the company has entered into long-term lease agreements with the holiday villa owners on the estate, which has resulted in the company making a net loss on activities for the period.
The company constructed 67 holiday villas in 2007 and managed to sell five in 2009 bringing the total amount sold to 47.