Operating profits at Cape Wrath Ltd, the company that run's Ireland's largest hotel, Citywest, dropped 42.5% last year to €528,649.
The Irish Independent reports that the drop in operating profits occurred despite an 11.5% increase in the firm's revenues, which rose from €25.33 million to €28.23 million.
Costs And Staff Numbers
The primary contributor to the decline in the company's operating profits was an increase in non-cash depreciation costs, which rose from €1 million to €2.3 million. After interest costs of €677,803 are taken into account, Cape Wrath recorded a pre-tax loss of €145,052.
Meanwhile, operating lease costs to a related entity decreased from €2.42 million to €2.22 million and the number of people employed by the firm remained static at 330, with staff costs coming to €9.3 million.
© 2018 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.