Pre-tax loss of €53.3m at hotel and pubs group Ocsas
The group owns some of the best-known pubs in Ireland, including the Quays pubs in Temple Bar and Galway, along with the Stag’s Head, Kehoes and The Big Tree in Dublin.
Accounts just filed by Ocsas Holdings Ltd show that revenues declined by 12% from €64.94m to €57m in the 12 months to the end of June last year.
The directors state that despite the trading conditions and the pressures on the licensed trade and the hotel industry as a whole, the group’s operating profits increased from €575,049 to €7.1m — a 12 fold increase.
The directors point out the group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) last year almost doubled from €6.7m to €13m.
The chief factor behind the increase in operating profits and EBITDA was the directors, Louis and Helen Fitzgerald’s, aggregate remuneration decreasing from €8.6m in 2009 to €474,346 last year.
Pre-tax losses increasing 11 fold from €4.5m to €50.4m is explained by a €51.8m impairment of fixed assets and a €1.5m in the impairment of “work in progress”.
The property write-down resulted in the company’s premises having a book value of €140.3m at the end of June last.
The directors state that despite the difficult economic climate, the actions taken to reduce costs, introduce improved work practices and efficiencies and developing new marketing strategies to generate extra business will ensure the business will continue to be profitable.
The report states: “This will also ensure that when the current economic climate improves we will be in a strong position to take immediate advantage of improved circumstances.”
The cost of sales declined from €24.1m to €21m during the year. An interim dividend of €562,435 was paid.
The numbers employed by the group last year decreased from 722 to 665 — including 593 bar staff, 48 bar managers and 24 in administration.
The accounts — signed off on May 26 last — show that the company’s employment costs fell by 9% from €15.96m to €14.48m.
The total recognised loss for the year was €24m when a minority interest profit of €1.9m and a revaluation of freehold premises and refurbishment at €25.4m was taken into account.
The group balance sheet shows tangible assets of €145m, down from €175m.
The accounts show that the company’s cash at hand totalled €12.7m last year with net assets at €82m.
The company had bank loans totalling €85.6m along with €13.1m owned to group companies. Last year the company paid €4.6m in bank loan interest compared to €5.8m the previous year.
The accounts say the group’s continued success has been achieved by the people working in it, and the quality of its staff and relatively low staff turnover reflects the good terms and conditions it offers.
The accounts show the group banks with Anglo Irish, Ulster Bank and AIB.
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