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Five-star hotel manages to cut pre-tax losses by 90%

Pre-tax losses at the Bill Cullen and Jackie Lavin-owned five-star Muckross Park Hotel in Co Kerry last year declined sharply by 90% to €358,566.

New accounts for Muckross Park Hotel Ltd show that the business reduced its losses after revenues increased by 6.7% from €2.59m to €2.77m in the 12 months to the end of Dec last.

The €3.7m loss in 2010 included a property write-down of €2.6m.

The filings show that Mr Cullen — who fronted TV3’s The Apprentice — has ploughed almost €10m of his personal fortune into making the hotel a success and last year provided an additional €349,061 to bring the total amount invested to €9.8m.

Ms Lavin yesterday pointed out that earnings before interest, tax, depreciation and amortisation (EBITDA) at the hotel totalled €39,981 last year compared to a loss under the same heading of €519,249 in 2010.

Ms Lavin said yesterday: “We’re on course to further increase profitability in the business for 2012.”

The hotel, located in Killarney’s National Park, employs 100 people and has 68 bedrooms and 24 luxury apartments.

Ms Lavin confirmed that bookings for weddings at the hotel are up 80% this year while room sales have increased by 75%.

The filings show that the hotel reduced its operating losses by 95% last year from €3.59m to €183,339.

The company also has bank loans totalling €4.7m and bank interest payments last year of €175,227 added to the losses.

Staff costs last year reduced by 5% from €1.23m to €1.17m. Accumulated losses at the firm last December stood at €13.65m.

The returns show that the business recorded a post-tax profit of €89,554 last year following a tax credit of €448,120.

However, auditors for the company, OCKT Ltd have questioned the tax credit and have qualified their opinion in respect of the treatment of deferred tax by the hotel firm.

The post tax profit of €89,554 followed a post-tax loss of €5.1 million in 2010 that included property write-downs. Home

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