Hotel’s pre-tax profit falls 8% after ‘difficult’ year’s trading

Pre-tax profits at the Cusack Group Knightsbrook Hotel and Golf Resort last year declined 8% to €759,973.

Accounts just filed with the Companies Registration Office show that the four-star hotel, based in Trim, Co Meath, sustained the drop in pre-tax profits after its gross profit dipped marginally from €3.33m to €3.32m in the 12 months to the end of Dec 2011.

According to the directors’ report, “the hotel and golf resort experienced very difficult trading conditions during the year”.

In 2010, the company’s banking facilities were taken over by Nama.

The directors’ report states: “Due to the prevailing adverse economic conditions, the company’s trading environment continues to be difficult.

“The company is still faced with the onerous task of managing and controlling its cost base and increasing sales.

“This, however, has become increasingly difficult not only for the company but for the hotel and hospitality sector as a whole, which has been hit hard by the recession and it is expected this trend will continue for the foreseeable future.”

The report states that the company “continues to rely on and has the support of its shareholders but also relies on the support of Nama and as a result the directors have produced a business plan for Nama”.

The firm recorded an operating profit of €844,770 last year compared to €908,095 in 2010.

The firm had a shareholders’ deficit of €974,103 at the end of December last.

Numbers employed by the hotel last year increased from 173 to 178, with staff costs increasing from €3.63m to €3.65m.

The directors’ aggregate remuneration last year dropped from €73,855 to €68,467.