Co. Galway's Ballynahinch Castle Hotel Experienced Increase In Pre-Tax Losses Last Year
According to its latest accounts, Co. Galway's Ballynahinch Castle Hotel experienced an increase in pre-tax losses last year. As reported by The Irish Times, the latest accounts from Yelsea Ltd rev...
According to its latest accounts, Co. Galway's Ballynahinch Castle Hotel experienced an increase in pre-tax losses last year.
As reported by The Irish Times, the latest accounts from Yelsea Ltd reveal that the impact of two COVID-19 pandemic-related closures last year contributed to pre-tax losses increasing by 73.5% to €1.83 million and revenues decreasing by 48.5% from €6.5 million to €3.3 million.
The pre-tax loss figure for 2020 reportedly takes account of non-cash depreciation costs of €1.23 million and interest payable and other expenses of €624,935, and the accounts reportedly show that the business received €680,309 in government wage subsidy schemes last year.
The accounts reportedly said that the company received €320,920 in Temporary Wage Subsidy Scheme payments and €359,389 in Employment Wage Subsidy Scheme payments, and a note in the accounts said reportedly that "the company was entitled to these subsidies following the decline in revenue as a result of COVID-19".
The number of people employed by the hotel reportedly decreased from 94 to 61 last year while staff costs reportedly decreased from €3.12 million to €1.99 million.
Directors' pay reportedly decreased from €503,775 to €50,000 last year. The 2019 directors' pay reportedly included €360,000 that was paid to a former director in respect of other termination benefits.
Accumulated losses at the company reportedly amounted to €4.93 million at the end of last year, and the company's cash funds reportedly amounted to €597,428. Director Denis O'Brien reportedly paid approximately €6.5 million for Ballynahinch in 2013 and has extensively refurbished the property.
The Ballynahinch company reportedly valued its fixed assets at €18 million at the end of last year, and it reportedly had bank loans of €4.7 million, and owed €17.3 million in loans and interest to an entity controlled by O'Brien.
Statements About Performance
The accounts reportedly said that "there were two periods of closure enforced by government restrictions and despite these circumstances, when open, the hotel traded exceptionally well", and that the hotel has "traded well in the domestic market" since it reopened on June 2, 2021.
The company's directors reportedly said that that they are satisfied with the company performance considering the very difficult trading conditions.
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