Pre-tax losses at Fitzpatrick's hotel increased by 12pc in 2011
PRE-TAX losses at the company that operates the four-star Fitzpatrick's Castle Hotel in Killiney, Co Dublin last year increased by 12pc to €384,983.
The 18th century, 113-room hotel is owned by Eithne Scott-Lennon -- her brother and well-known hotelier John Fitzpatrick runs two Fitzpatrick hotels in New York city.
The accounts show that the hotel recorded a modest operating profit of €4,678, but interest payments of €391,109 resulted in the pre-tax loss in the 12 months to the end of September 29, 2011.
According to the directors, they have prepared trading projections "and are of the opinion that the company's trading performance will improve and the company will have adequate resources to meet its working capital requirements for the foreseeable future".
The note adds: "Furthermore, the directors have not received notification of a withdrawal of facilities from their principal lending institution and are confident that the company continues to have the financial support of its banks."
The directors state that "the company is continually reviewing its cost structure and has implemented plans to improve efficiencies and make savings where possible whilst maintaining service levels to guests".
According to the director's report, "the hotel has traded satisfactorily given the tough economic climate which the company operated in during the period under review. The company has prepared budgets for 2012 and the directors are satisfied that the targets as set under these budgets will be achieved".
The pre-tax loss follows a pre-tax loss of €343,671 in 2010.
The numbers employed by the company last year increased from 124 to 127, with staff costs reducing from €3.2m to €3.1m. The staff costs last year included €17,918 in redundancy costs.
The figures show that Ms Eithne Scott Lennon along with two other directors shared remuneration of €335,687 last year -- an increase on the aggregate remuneration of €308,379 in fiscal 2010.
The accounts do not provide a turnover figure. However, the company's gross profits declined by 2.5pc from €5.77m to €5.62m.
The loss last year includes a non-cash depreciation cost of €261,205.
The figures show that the company's property was written down by €8m to €15m in 2010 and no further impairment was recorded last year.
Drawing attention to the company's losses, auditors Horwath Bastow Charleton state: "The valuation of all property related assets are subject to uncertainty due to the downturn in the property market and this has an impact on the directors' ability to verify the appropriateness of the carrying value of such assets."
The company's shareholder funds totalled €3.9m at the end of last September.
The figures show that the company had bank loans totalling €10m at the end of September 2011.