Pub owner pay rises 381% to €2.28m

Louis and Helen Fitzgerald gave themselves a four-fold pay increase last year to €2.28m as pre-tax profits flowed once again at their Dublin-based pub and hotel group.

New accounts filed by Ocsas Holdings Ltd show that the Louis Fitzgerald pub, restaurant and hotel group recorded a pre-tax profit of €1.56m in the 12 months to the end of last June, after sustaining a pre- tax loss of €50.4m in 2010.

The loss in 2010 occurred after the firm booked a €53.3m write-down in fixed assets and work in progress.

Last year, the firm recorded the pre-tax profit after revenues decreased by 2.5% from €57m to €55.5m.

Louis and Helen Fitzgerald are the group’s only serving directors and the accounts show that their aggregate remuneration increased by 381% from €474,346 to €2.28m last year.

However, this is some way off the €8.6m the two received in aggregate remuneration in 2009.

The group owns some of the best-known pubs in Ireland, including The Quays pubs in Temple Bar, Dublin and Galway, along with the Stag’s Head, Kehoes, the Big Tree, the Baggot Inn and the Grand Central Café bar in Dublin.

The group — which is set to benefit from Ireland’s soccer team competing in Euro 2012 — also operates the Poitin Stil at Rathcoole, the Arlington Hotel in Dublin and the four-star Louis Fitzgerald Hotel at Newlands Cross.

According to the directors’ report attached to the accounts: “Despite difficult trading conditions and the pressures on the licensed trade and hotel industry as a whole, the group achieved an operating profit of €6.2m.” This followed an operating profit of €7.1m in 2010.

The accounts also state that the group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) amounted to €11.2m last year, compared to €13m in 2010.

The directors’ report further states: “The directors are of the view that despite the current difficult economic climate the actions taken to reduce cost, introduce improved work practices and efficiencies and developing new marketing strategies to generate extra business will ensure that the business will continue to be profitable.

“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,” it added.

The group also reduced its bank loans during the year, from €89m to €86.8m.

The group’s cash reserves increased during the year from €16.2m to €18.4m, with its net assets increasing from €56m to €57.5m.

Staff numbers last year decreased marginally from 665 to 658 — comprising 589 bar staff, 46 bar managers and 23 in administration.

The accounts show that the company’s employment costs decreased by 2% from €14.48m to €14.15m.