Adare company incurred losses of €2.7m due to staging Irish Open

AN Adare-based company controlled by Irish-American businessman Tom Kane and his family incurred losses totalling over €2.77 million due to staging the Irish Open at Adare Manor in 2008 and 2007.

The losses are confirmed in accounts just filed by Adare Manor Ltd to the Companies Office.

Returns for 2009 and 2008 have been made by the company in recent days and the figures show that the company recorded a pre-tax loss of €1.5m to the end of December 2009.

This compares to a loss of €3.2m in 2008 which included exceptional losses of €1.39m relating to staging the Irish Open.

This followed the exceptional losses of €1.38m connected to staging the European Tour event in 2007.

The Irish Open is without a sponsor this year after telecommunications company 3 withdrew from sponsoring the event and the competition is to be held at Killarney Golf and Fishing Club in July.

The figures show that Tom Kane and family members own 76.25% of Adare Manor, which operates the Carriage House restaurant at Adare Manor and holiday villas in the estate along with the provision of construction activities.

The abridged accounts do not provide a turnover figure, however they confirm that the company’s gross profit reduced by 11% from €2.1m to €1.9m to the end of December 2009.

Staff costs and other operating expenses totalling €3.4m resulted in the company recording an operating loss in 2009 of €1.5m.

The loss resulted in the company having accumulated losses of €5m at the end of 2009.

The figures show that the numbers employed by the company during the year reduced from 51 to 33 that resulted in staff costs decreasing from €1.25m to €1.05m.

In relation to future developments, the directors state that they “are confident that during the coming year, turnover will be increased and profitability will be achieved”.

The company constructed 67 holiday villas in 2007 and managed to sell five in 2009, bringing the total amount sold to 47.

However, the accounts state that the company’s work-in-progress assets with a value of €13.4m was purchased by Adare Partners LP in 2010.

The accounts also disclose that Adare Partners repaid the bank loans of Adare Hotel Ltd totalling €12.96m and any loans by the company to Adare Partners were also written off in 2010.

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