Profits rise by 11pc at Talbot group as hotel growth outpaces retail
Pre-tax profits at the business behind the four-star Talbot hotel group and the long established Wexford-based Pettitt's supermarkets jumped by 11pc to €3.46m last year.
The group also operates the Stillorgan Park Hotel in Dublin and new figures filed by Torski Ltd show that the group enjoyed the jump in profits as revenues climbed by 3pc from €120.4m to €124m in the 12 months to the end of December last.
Numbers employed by the group increased from 972 to 1,028 during the period.
According to the directors' report, "the results for the year and the financial position at year end were considered satisfactory by the directors who expect continued growth in the foreseeable future".
The group operates the Talbot four-star hotels in Wexford, Carlow and Stillorgan and acquired the historic Newbay House in Co Wexford during the summer.
However, the figures show that the largest proportion of the group's revenues come from the retail trade though the main area of growth last year was the group's hotel division. The accounts show that there was a marginal increase in retail revenues to €90.5m while hotel revenues increased by 12pc going from €28.6m to €32.19m.
The group's income from the 'farm trade' reduced slightly to €1.05m while rental income increased from €295,102 to €362,912.
The group recorded a 22pc increase in operating profits going from €3.7m to €4.55m.
However, interest payable of €846,428 and €243,802 written off in investments resulted in the pre-tax profits of €3.46m.
The group recorded post-tax profits of €2.66m after paying €800,653 in corporation tax.
The profit takes account of combined non-cash depreciation and amortisation costs of €3.3m.
The figures show that Torski Ltd's three directors, Desmond Pettitt, Bernadette Pettitt and Cormac Pettitt, shared emoluments of €1.66m in 2016 - up on the €1.3m shared between the three in 2015.
The highest paid director was paid €748,130. Staff costs at the group increased from €23m to €25m, reflecting the rise in employee numbers.
The accounts show that 495 are employed by the group hotels with 417 employed by the supermarkets. Sixty-three are employed under the heading of 'directors and management' total 63 with 53 employed under the heading of administration.
The group's bank loans and overdrafts last year increased from €22m to €29.5m. The accounts show that the group last year spent €2.5m on the purchase of an investment property.
The value of the company's tangible assets last year increased from €81.96m to €89m with the value of investment properties increased from €1.1m to €3.6m.
The filings show that the group's balance sheet remains strong with accumulated profits of €59m. Shareholder funds totalled €64m while the group's cash during 2016 increased from €5.7m to €8.3m.