Gleneagle company’s losses hit €450k

PRE-tax losses at the company that operates the Gleneagle Group of hotels in Co Kerry totalled over €450,000 last year.

The €452,754 pre-tax loss to the end of December last follows Gleneagle Hotel (Killarney) Ltd sustaining a pre-tax loss of €803,846 in 2009.

The company operates a number of hotels in Kerry, including the four -star 244-room Gleneagle Hotel overlooking Killarney National Park, along with the 3,000-capacity INEC entertainment venue.

The company reduced its losses last year by 43% in spite of revenues declining by 7% from €21.49 million to €19.9m to the end of December last.

A note attached to the accounts says the company “has incurred significant losses” in 2010 and 2009, pointing out that the company had positive net assets of €2.2m.

However, it adds that “the directors are confident that the company will trade through the current difficulties being faced by the tourism and hospitality sector and will return to profitability in the near future”.

As a result, the directors state that it is appropriate to prepare the financial statements on a going concern basis.

A spokesman for the group said it managed to record “a significant decrease in overall loss last year. In common with all businesses in the hospitality sector, revenues are down and the group is addressing its cost base, while at the same time providing value for money to our customers”.

The spokesman declined to comment further. The figures, however, show that the company recorded a cash profit last year after the non- cash depreciation cost of €946,146 is taken into account.

The company’s accumulated losses at the end of December last — mainly made up of depreciation costs — amounted to €2.56m.

Numbers employed by the group increased by three to 296, although staff costs declined from €8m to €7.7m last year.