Fitzpatrick Castle Hotel profits jump to €481,000
Pre-tax profits at a four-star hotel business owned by one of the best-known names in the Irish hotel industry have increased 22-fold to €481,129.
The 18th century Fitzpatrick’s Killiney Castle hotel in Dublin is owned by Eithne Scott-Lennon. Her brother, well-known hotelier John Fitzpatrick, runs two very profitable Fitzpatrick hotels in New York city.
New accounts filed for the firm that operates the 113-bedroom Fitzpatrick Castle Hotel in Killiney show that revenues at Killiney Hotels Ltd increased 5pc going from €7m to €7.4m in the 12 months to the end of September last.
According to the directors’ report, the firm last October entered into a new bank financing arrangement with Bank of Ireland “which will result in significant reduced costs going forward and enable the company to concentrate on some internal refurbishment”.
The directors state that “although the directors are not expecting the same level of growth in the market for the coming year as in 2016, the company would hope that the increased level of activity from 2016 along with new refurbishments to be carried out would allow the hotel to build on the revenue seen in 2016”.
The business last year paid €623,180 in interest charges and this followed an interest payout of €649,327 in 2015.
The directors state that
operating profits increased by 65pc to €1.1m and the jump includes two exceptional items that include the write-off of inter-company debt of €341,000 and the reversal of a previous asset impairment of €550,000.
The directors state: “Removing these two figures, the operating profit actually rose by 33pc.
This is as a result of management’s concentrated effort to review certain administrative expenses and introduce cost-saving measures where possible.”
However, the firm recorded a post tax loss of €1.3m. This followed the company incurring a deferred tax charge of €1.78m.
The deferred tax charge arose on the revaluation of property.
The accounts show that the company enjoyed an unrealised surplus of €3.7m on the revaluation of tangible fixed assets.
Numbers employed decreased from 117 to 113 with staff costs, including directors’ remuneration, increasing from €2.9m to €3.1m.
Remuneration to directors stood at €250,001.
The operating profit takes account of non-cash depreciation costs of €383,007.
Accumulated profits totalled €5.76m.