Pre-tax losses at O’Dwyer pub group decrease sharply

Pre-tax losses at the slimmed down O’Dwyer hotel and pub group decreased sharply to €6.3m in 2010, new figures show.

The pub empire that brothers Liam and Desmond O’Dwyer built was broken up in 2009 when a bank receiver was appointed to three of their pubs, Café en Seine, The George, and Howl at the Moon.

However, the O’Dwyers continue to operate Break for the Border, the Dragon Bar and the Grafton Capital and Trinity Capital hotels.

Accounts filed by the O’Dwyers’ Toji Holdings Ltd with the Companies Registration Office confirm that pre-tax losses decreased by 59% from €15.6m in 2009 to €6.3m in the 12 months to the end of Sept 30, 2010.

The figures show that revenues at the group in 2010 decreased by 25% from €32.3m to €24.2m. Revenues are split between €22.2m from bars, hotels and restaurants and €2m from waste management.

The accounts, signed off on July 18 this year, show the firm returned to an operating profit of €299,000 in 2010 following an operating loss of €1.9m in 2009.

However, bank interest costs of €6.6m resulted in the €6.3m pre-tax loss, with a €1.4m write down in properties adding to the group’s losses. The pre-tax losses also take account of depreciation costs of €1.6m.

Accumulated losses at the group at the end of Sept 2010 stood at €65m. The figures show that the group owed €113m in bank loans in 2010 and a note attached to the accounts states that the group continues to rely on the support of Nama and the Irish Bank Resolution Corporation (IBRC).

The note states: “The company submitted a business plan for the group and is engaged with a working relationship with Nama. It is anticipated that loan facilities will be extended following discussions with Nama.”

The note continues that “the directors believe that any working capital requirements that may arise in the current and upcoming financial periods will be supported by assistance from its bankers”.

The directors say they have a reasonable expectation that the group will continue in operational existence for the foreseeable future.

The accounts disclose that the O’Dwyers have provided personal guarantees of €8m on a portion of the bank loans.