Thursday 22 August 2019

McKillen Press Up profits hit by expansion costs

The group’s portfolio includes Wagamama restaurants
The group’s portfolio includes Wagamama restaurants

Gordon Deegan

Operating profits at Paddy McKillen Jnr's hotel, restaurant, pub and nightclub entertainment group last year dropped by 6pc to €4.82m.

The drop in operating profit came in spite of revenues increasing from €42.9m to €43.9m.

McKillen's Irish entertainment business, Press Up Entertainment Group, has expanded rapidly in recent years.

The accounts for Orsen Ltd include the revenues of McKillen's Wagamama restaurants here along with the revenues at the Everleigh Garden nightclub on Dublin's Harcourt St and the Workman's Club in Temple Bar adjacent to the Clarence Hotel.

The group's portfolio includes the Dean Hotel, Roberta's, Cleaver East, Angelina's, WowBurger, Peruke & Periwig and the Liquor Rooms.

In recent weeks, the group has expanded further with the opening of the Stella cinema in Rathmines, while the group has recently acquired one of Dublin's most popular restaurants, the Elephant & Castle in Temple Bar.

It was against the background of continued expansion at the group that sent pre-tax profits plummeting last year due to group interest on loans doubling to €1.2m.

The accounts show that Orsen recorded pre-tax profits of €140,202 following pre-tax profits of €1.8m in 2015 - a drop of 92pc.

This was largely as a result of interest payments going up from €649,041 to €1.26m while non cash amortisation and depreciation costs increased from €2.6m to €3m.

The directors state that the company is proactive in staying ahead of the competition.

The group's lease costs last year increased from €2m to €2.5m.

Underlining the expansion of the group, numbers employed last year increased from 666 to 701 with staff costs increasing from €13m to €15.5m.

Remuneration to directors last year totalled €150,000.

Shareholder funds topped €2.9m while the firm's cash last year increased from €815,520 to €2m.

The accounts show that at the end of last year, the group owed €696,785 to Paddy McKillen Snr and €373,699 to Paddy McKillen Jnr.

The value of the group's tangible assets last year totalled €14.8m.

The group recorded a post-tax profit of €57,510 following a corporation tax bill of €82,692.

Last month, Press Up's expansion plans suffered a setback when plans to demolish Howl at the Moon nightclub in Dublin 2 and build a 53-room hotel on the site were turned down by An Bord Pleanála.

The Press Up Group is planning to lodge a revised planning application for the site.

Irish Independent

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