Monday 17 June 2019

Five-star results for Cork hotel firm as profits leap 20pc

Rochestown Park hotel was established by the Lehane family
Rochestown Park hotel was established by the Lehane family

Gordon Deegan

Pre-tax profits at the firm that operates the Rochestown Park hotel in Cork increased by 19.5pc to €1.2m last year.

Accounts filed by Windsor Surprise to the Companies Office show that the firm recorded the jump in pre-tax profits after revenues increased by 1.2pc from €11.34m to €11.48m 

According to the directors' report, they "are pleased with the trading performance for the year and intend to capitalise on positive sales growth to contribute to sustained profitability in the future".

The pre-tax profits of €1.2m follow pre-tax profits of €1.08m in 2016. On the firm's future developments, the directors state that "the company will continue to consolidate its market share given the economic recovery facing the hotel sector".

The four-star hotel was established by the Lehane family and it continues to be a strong employer, with staff numbers increasing by four from 210 to 214 in 2017.

The hotel was developed by the late Dónal Lehane with his brother and business partner, Johnny Lehane. Seán Lehane also serves on the board with John Donovan.

Giving an insight into the high costs hotels today face in respect of rates and insurance, the accounts show that the hotel's rates bill for the year totalled €518,215 while the hotel's insurance bill increased from €239,643 to €261,975. 

The hotel spent an additional €90,999 in security last year while its cleaning bill totalled €278,238.

The accounts show that the firm recorded operating profits of €1.85m last year and interest payments of €631,238 resulted in the pre-tax profits of €1.2m.

The filings show that the business recorded a gross profit of €9.25m that followed a gross profit of €9.12m in 2016.

The post-tax profit in 2017 resulted in shareholder funds totalling €4m at the end of December 2017.

The firm's accumulated profits totalled €2.19m.

The firm's cash pile increased from €565,220 to €695,177 during the year.

The book value of the company's tangible assets totalled €27.35m at the end of 2017.

During 2017, the amount owed in bank loans reduced from €20.7m to €19.8m.

The profit takes account of non-cash depreciation costs of €391,549.

Pay to directors remained static at €103,680 while the pay to key management personnel increased from €239,994 to €241,538.

Irish Independent

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