The group that operate the K Club golf resort suffered pre-tax losses of €6.59 million in 2011.
According to new accounts filed with the Companies Office by Bishop Investments Ltd, losses narrowed by 7 per cent from €7 million to €6.59 million in the 12 months to the end of December 2011.The accounts record that losses continued into 2012.
A note attached to the accounts states that, in April 2012, the group successfully concluded negotiations with Nama relating to the debt facilities included in the company’s balance sheet.
The business had bank loans of €54.8 million at the end of December 2011. It now has no external bank debt, according to a directors' report dated 12 September , 2013.
The company had a shareholders’ deficit of €1.33 million after a share premium of €32.3 million is taken into account. Its money fell from €2.7 million to €1.6 million.
The staff employed at the resort increased from 161 to 163 in 2011 with staff costs reducing from €4.9 million to €4.6 million.
In the accounts, KMPG have repeated its opinion made in the 2010 accounts over the club's failure to write down the value of its assets.
In its 2011 audit report, it says the group’s fixed assets are valued at €87.5 million and no arrangement has been made for impairment. The €87.5 million valuation includes a €55.4 million value on land and buildings and €10.1 million on golf course construction.
According to the Irish Times, the auditors say the effect of the failure to impair the assets “is likely to materially overstate the carrying value of the group’s fixed assets, understate its loss for the year and retained earnings at 31December, 2011”
