Hotel group’s profits plummet by 96%

Profits at the firm behind the four-star Talbot Hotel Group and the long-established Wexford-based Pettitt’s supermarkets plummeted 96% last year to €89,070.

The firm operates the Stillorgan Park Hotel in Dublin and figures show that revenues at the group dipped marginally from €108.2m to €107.4m in the 12 months to the end of December last.

The filings lodged by Torski Ltd to the Companies Office show that the group recorded pre-tax profits of €2.1m in 2010. Numbers employed by the group last year increased from 816 to 829.

According to the directors’ report: “The results for the year and the financial position at year-end were considered satisfactory by the directors in light of the current economic environment.”

The chief factor behind the decline in profits was the group’s other operating income dropping from €6m to €4.2m.

The group operates the four-star Talbot hotels in Wexford, Carlow and Stillorgan. However, the figures show that the largest proportion of the group’s revenues come from the retail trade.

The group generated revenues of €89m in its supermarket business last year, with its hotel trade accounting for €16.8m of revenues. The group also generated €1.1m through farming and €298,090 in rental income.

The profit last year takes account of combined non-cash depreciation and amortisation costs of €3.58m.

The figures show that Torski Ltd’s three directors, Desmond Pettitt, Bernadette Pettitt and Cormac Pettitt shared remuneration of €1.973m last year — marginally up on the €1.843m paid out in 2010.

The filings show that the group’s balance sheet remains strong, with accumulated profits of €50.1m. The group’s shareholder funds totalled €55m, while its cash during 2011 declined from €9.3m to €4.8m.

A breakdown of the performance of Torski Ltd’s subsidiaries show its retail arm, John Pettitt Wexford, performed strongly with profits of €371,240 while a property investment firm recorded €376,183 profit. Stillorgan Park Hotel Ltd recorded a profit of €35,418, while the Talbot Hotel Carlow Ltd recorded a loss of €221,242.

Staff costs declined marginally from €19.43m to €19.14m.