Flagship tourism firm reports €240,000 loss

THE mid-west’s flagship tourism company sustained pre-tax losses of almost €240,000 last year as visitor numbers continued to plummet in the region.

Shannon Heritage Ltd operates Bunratty Castle and Folk Park along with O’Brien’s Tower at the Cliffs of Moher and accounts just returned to the Companies’ Office show the Shannon Development subsidiary incurred pre-tax losses of €239,764 to the end of December last.

The losses follow pre-tax losses of €254,533 in 2008 and the returns confirm that last year, visitor numbers at the company’s attractions dropped 13% from 505,963 to 437,761.

The 13% drop last year followed visitor numbers dropping by 13% in 2008.

The company’s gross profit last year dropped by 14% from €8 million to €6.9m.

The directors’ report states that “during the year, the company continued to engage in a cost-reduction programme and achieved savings in all areas including wages and salaries”.

It goes on: “As a consequence, the company is forecasting a small loss for 2010 reflecting the cost reductions achieved and the level of forecasted activity, expected in the current economic climate.”

Chief executive of Shannon Heritage, John Ruddle, said yesterday: “The company is very satisfied with its performance given external factors.”

He added: “Shannon Heritage is in good shape and is aiming to move back to profit in 2011 and build from there. We have expanded our activities and events’ calendar over the last two years and we intend to extend this further in 2011.

He went on: “We expect the outlook for next year to be fairly similar to 2010, with some pick-up in international markets and the domestic market remaining fairly similar.

“Shannon Heritage will continue to be innovative in our response to the challenges we face. We will continue to build our portfolio of tourism products and events . . . We are experiencing a hugely challenging tourism environment, but we are confident that we will weather the storm.”

Mr Ruddle said that staff retention remains a priority for Shannon Heritage and 2010 staff numbers are the same as 2009.

He confirmed that cost savings were achieved by introducing an agreed company-wide reduction in wages and salaries on July 1, 2009.

The wage cuts helped reduce the company’s staff costs by €900,000 last year from €5.4m to €4.5m.

He said: “This was done by way of a choice between a 12.5% cut in hours worked or a 10% cut in pay rate, whichever best suited the employee preference. Company increments were ceased in July 2008 for management and July 2009 for staff.”

Mr Ruddle stated: “The downturn, which started in May 2008, has not abated but despite this the company’s results have stabilised.”