Tuesday 18 December 2018

K-Club sinks deeper into the red

Michael Smurfit Photo: Steve Humphreys
Michael Smurfit Photo: Steve Humphreys

Gretchen Friemann

Bishopscourt Investments, the company behind the prestigious K-Club, has failed to arrest the luxury hotel and golf club’s near-decade run of losses, with the latest accounts recording another steep descent into the red.

The financial statements show the Michael Smurfit controlled-entity widened its losses for the 2015 financial year to €3.7m, compared with €3.2m in 2014.

The accounts, approved by the directors on November 10, cite the "general economic, financial and business conditions" as a threat to the group’s future operating performance and warn that “events that reduce domestic or international travel” pose a risk to room rates and occupancy levels.

In 2012 Dr Smurfit bought out his former business partner Gerry Gannon’s stake in the hotel and golf course, which was under the control of Nama, for about €40m. But since then the family has been unable to turn a profit on the enterprise.

The accounts show the company owes creditors €76.6m, compared to the €62.1m owed in 2014.

While turnover rose to €14.2m in 2015, versus €12.8n in 2014, overheads, including administrative costs, selling and distribution costs as well as staff wages all increased.

The K-Club's prestige reached a peak in 2006 when it hosted the Ryder Cup.

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