US backers ‘committed’ to Doonbeg despite losses

THE US-backers of Doonbeg golf course said they remain committed to the project as figures show the resort recorded pre-tax losses of €5.8 million last year.

Accounts just filed by Doonbeg Investment Holding Company show that losses at the Co Clare resort last year fell from €7.7m to €5.8m after revenues increased 15% from €7.84m to €9m in the 12 months to the end of December last.

According to Townsend Clarkson of US parent, Kiawah Development Partners: “Kiawah is as committed as it ever was. We fully appreciate the difficult economic climate in which Doonbeg operates and we have been very pleased with progress made in recent years. For the last couple of years, we have been conscious that it is going to take a little longer for the Doonbeg project to become profitable.”

Joe Russell, general manager at Doonbeg, said yesterday: “We are confident that we will break even in operations in 2012. This will be achieved by continuing to grow our business and also by continuing to watch our costs.”

Mr Russell said that “2014 would be the expected timeframe” in which company anticipates that it will record its first profit.

Mr Russell stated that a 60% increase in bed nights and 15% rise in golf rounds at the Greg Norman-designed course helped reduce losses by €2m.

The losses have been funded by a capital contribution of €66m from its Kiawah parent, leaving shareholder funds of €17.7m.

Mr Russell said that there were 31 weddings at the venue last year.

Numbers employed at the resort last year declined from 193 to 160, with staff costs falling €200,000 to €4.7m.

Mr Russell confirmed that the resort recently sold its first property in three years at a price of €800,000 — the Links Cottages were originally put on the market at €1.4m.