K Club ‘dependent on shareholder and banker support’ as losses forecast

THE K Club, which played host to the Ryder Cup in 2006, expects losses in 2010 and 2011.

According to 2009 accounts just filed for Bishopscourt Investments Limited and Subsidiaries, which operates the K Club at Straffan, Co Kildare, pre-tax losses fell from €8.3 million to €6.5m. Turnover was down from €13.9m to €11.2m in 2009.

The accounts said the group incurred operating losses in 2010 and based on projections, expects to incur further operating losses in the year to the end of 2011.

The group’s liabilities include a bank loan of €55m which is repayable on demand. The accounts said the group received notification from the bank that its loans and related security were transferred to NAMA since the year end.

It said a business plan has been submitted to NAMA which assumes that the loan facility will remain in place.

“NAMA has not yet communicated its views on the business plan. As a result, the group will be dependent on the financial support of its shareholders and its bankers to enable the group to meet its obligations for at least 12 months from the date of the approval of these financial statements,” the accounts read.

The accounts said the group’s future operating performance will be affected by the general economic, financial and business conditions.

“Failure of its shareholders and the group’s bankers to provide financial support may cast significant doubt on the ability of the group to continue as a going concern and it may therefore be unable to realise its assets and discharge its liabilities in the normal course of business,” the accounts said.