Cork Opera House losses triple
According to accounts just filed with the Companies Office, revenues at Cork Opera House plc decreased by 21% from €4.88m to €3.84m in the 12 months to the end of Mar 31, last.
The chief factor behind the drop in revenues was the venue’s decision to close for three months in summer 2010 “to stem operating losses during what is traditionally a quiet period”.
The filings also confirm that “a strategic review was undertaken during this closure period and on completion a five-year business plan was prepared”.
A report by opera house chairman, Damien Wallace confirms the theatre had cash flow difficulties in May 2010, resulting in the company seeking the assistance of Cork City Council. The council sanctioned a loan of €1.25m to help secure the theatre’s future.
It also guaranteed a €1.5m Bank of Ireland loan to restructure the Opera House’s existing short terms loans and an outstanding City Council loan of €857,073 was converted to a non-repayable capital grant.
In his report, Mr Wallace states: “The Cork Opera House now has a strong balance sheet and is in a position to meet its financial commitments as they become due. Overall, I am confident for the future.”
Numbers attending the main auditorium declined from 167,324 attending 266 performances in fiscal 2010 compared to 127,557 patrons attending some 204 performances last year.
The restructuring contributed to the numbers employed last year decreasing from 78 to 53, with staff costs decreasing from €1.9m to €1.1m. The restructuring costs totalling €371,099 comprises redundancy, professional and other costs. The loss last year includes a non-cash depreciation cost of €640,723.
The losses resulted in accumulated losses of €3.1m at the end of March last. The company’s shareholder funds totalled €2.5m that included €817,080 in cash. The figures show funding from the Arts Council fell from €228,600 to €48,800. Losses before the exceptional cost of €371,099 increased last year by 58% from €286,346 to €454,183.
Mr Wallace states: “The implementation of the strategic plan combined with the more varied and attractive programme is already beginning to show positive results and will ensure that we can achieve our aim for the company of looking forward to a future that will eliminate the deficit, return to an annual surplus and begin to repay the funds loaned from Cork City Council.”
In her report, Cork Opera House chief executive, Mary Hickson, said financial issues dominated the psyche and public image of the theatre when she took on the role in October 2010.
She reports: “As a result, staff morale was at an all-time low and the impacting of the recession biting our patrons, our business and our attitudes was overwhelming.”
She reports staff morale is now very good. “There is still a lot of work to be done to achieve the potential of the Opera House. We are getting through it with energy and enthusiasm.”
Under Ms Hickson’s direction, the venue decided to have no tribute bands for 12 months and have an opera in every programme for the first 12 months.
She reports: “Each and everyone of us appreciates what the opera house represents for the public of Cork and we will strive to lift it to the place it deserves within the cultural infrastructure of Ireland.”
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