The Donald Trump-owned Trump Doonbeg resort in Co Clare has recorded its first operating profit since the Trump organisation purchased the resort for a knock down price in 2014.
That is according to accounts just filed for the Trump resort which show that the business recorded a modest operating profit of €2,939 as revenues increased by 7.5% from €10.66m to €11.47m last year.
The operating profit of €2,939 last year followed an operating loss of €330,030 in 2017- a positive swing of €332,969.
However, the resort company TIGL Ireland Enterprises Ltd recorded a pre-tax loss of €1.49m last year due to non-cash depreciation and amortisation costs of €1.487m. The pre-tax loss also arose from interest costs of €14,943 last year.
The pre-tax loss of €1.49m last year was 15.5% down on the pre-tax loss of €1.7m in 2017.
The Trump Organisation has ploughed more than €40m, including the purchase price, into the resort since it came under the ownership of the Trump Organisation in February 2014.
Since February 2014, US President, Donald Trump has visited Doonbeg seven times - including last June’s visit which provided a windfall for the resort when it received €107,625 for providing food and catering to Gardai on overtime protecting the President.
According to the directors’ report, “the owner’s commitment to invest in its facilities over the past number of years have resulted in significant annual improvement to the group’s operating results before depreciation and tax.
The new accounts confirmed that last year, the Trump Organisation spent €1.2m in capital improvements at the resort and this followed a spend of €1.4m under the same heading in 2017.
According to the directors’ report, “the owner’s commitment to invest in its facilities over the past number of years have resulted in significant annual improvement to the group’s operating results before depreciation and
“The directors are confident that in the forthcoming year, the continued redevelopment will contribute positively to increases in turnover in the years to come.”
Last month, the resort received a boost with Clare County Council granting planning permission for a €40m plan that includes 53 holiday cottages, a ballroom/function room, a leisure centre and a new restaurant.
The resort is now free to press ahead with the plan after no appeal was lodged to An Bord Pleanala against the decision.
Next month, An Bord Pleanala is expected to make a decision on coastal protection works for the resort.
According to the directors, “the success of both applications will be fundamental to the continued success of the resort and its operations".
They state: “It is expected that this will help to enhance the customer experience and have a positive effect on trading results for the entity and local economy.”
The resort is the single largest employer employer in west Clare and last year staff costs increased by 5.5% from €6m to €6.35m as numbers employed increased from 213 to 221.
At the end of last year, the company’s shareholder funds totalled €19.14m.
This was made up of €10.8m in accumulated losses and €29.16m in other reserves.
The company last year recorded a gross profit of €9.767m and administrative expenses of €9.764m resulted in the operating profit of €2,939.
US President Donald Trump’s sons, Eric and Donald Jnr remain on the board of the Trump Doonbeg firm- President Trump and his daughter, Ivanka stepped down as directors on January 19th 2017 - one day prior to President Trump’s inauguration.
The accounts were signed off by directors, Eric Trump and General Manager, Joe Russell on October 31st.