Capital spend hits Dromoland Castle's profits
An increased capital spend at the firm that operates the five -star Dromoland Castle hotel last year contributed to pre-tax profits at the business decreasing by 73pc to €63,816.
The sharp drop in pre-tax profits from €242,477 to €63,816 at Dromoland Castle Holdings Ltd came in spite of revenues increased by 14pc from €13.7m to €15.59m in the 12 months to the end of December last.
Last year Dromoland celebrated 50 years in business. Former guests include two former US Presidents, George Bush and Bill Clinton, along with Nelson Mandela, Muhammad Ali and The Beatles.
In 2012, Dromoland purchased the adjoining Clare Inn hotel for €2.1m and spent additional CASH in the fitting out and rebranding of the hotel as The Inn at Dromoland.
According to the directors' report, they "are satisfied with the performance in the current year which increased revenues. Operating profits decreased due to capital expenditure increases during the year".
The 2013 accounts included the first 12-month performance for both Dromoland and The Inn at Dromoland.
Around 330 are employed between the two hotels and the profits take account of €1.3m in non-cash depreciation costs.
The accounts are signed off by Gavin O'Reilly and Mark Nolan who has managed the enterprise since 1989. Employment costs last year totalled €6.5m compared to €5.4m in 2012.
Shareholder funds total €21.92m that included €11.3m in accumulated profits.