Aghadoe Heights Hotel operator returns to profit
The Aghadoe Heights Hotel and Spa is the flagship hotel owned by hotelier and developer Jerry O’Reilly.
According to accounts just filed with the Companies Office, Dalegrove Taverns Ltd recorded an operating profit of some €110,265 before depreciation and interest in the 10 months to the end of October last.
The company has bank loans totalling €12 million and a note attached to the accounts confirms that “due to trading difficulties and decreasing levels of parent company support, bank interest on company borrowings has been rolled up since early 2009”.
It adds: “While no formal agreement is in place, the directors are confident the company’s bankers will, in the short term allow bank interest roll-up to continue, in order to allow the company to continue to trade and the property to maintain its value as a trading entity.”
The figures show the company recorded a pre-tax loss of €780,565 in the 12 months to the end of December 2010 following a pre-tax profit of €2.67m in 2009.
The pre-tax loss last year takes account of interest payments of €253,254 and non-cash depreciation costs of €437,339.
In 2009, Dalegrove Taverns Ltd wrote down the value of its property by €16m.
Mr O’Reilly also operates hotels in Kilkenny and Limerick, and entered into a number of ventures with developer Bernard Mc-Namara including the redeveloped five-star Shelbourne Hotel and the Radisson Blu hotel in Galway.
The abridged accounts do not provide a revenue figure, but the firm’s gross profit increased from €2.49m to €2.61m in 2010.
The accounts show the €12m bank loan is secured by a legal charge over the company’s property, a personal guarantee from Mr O’Reilly and a guarantee from lessor, Aghadoe Partnership.
The directors’ report states: “The company has operated at an improved level of activity to date in 2011 and this trend is expected to continue into 2012.
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