€4m profit for Quinn wedding hotel

The former Seán Quinn hotel that was the setting for his daughter Ciara’s lavish wedding recorded pre-tax profits of €3.9m last year.

The Slieve Russell Hotel in Co Cavan hosted the 2007 Quinn wedding that included a 6ft tiered wedding cake for 400 guests which was baked in New York, packed into 20 boxes, and flown to Ireland.

However, following the collapse of the Quinn empire, the Irish Bank Resolution Corporation, formerly Anglo Irish Bank, assumed control of the hotel when a share receiver was appointed to the hotel firm in Apr 2011.

The hotel was established by the jailed and bankrupt Mr Quinn and new figures show the hotel recorded the profit last year after €4.8m in loans due to a connected firm were waived.

The pre-tax profit last year follows a modest pre-tax loss of €30,000 in 2010.

Revenues increased from €13.29m to €13.34m, with operating profits before exceptional items dropping from €1.73m to €831,000 last year.

The directors state that “reduced activity in the hospitality sector continues to present challenges for the group, however there is a continued strategic focus on cost management to ensure that the group remains competitive within the hospitality sector”.

According to the directors’ report, “the group’s 2012 budget indicates that a positive earnings before interest, tax, depreciation and amortisation [EBITDA] of significantly over €1m will be achievable”.

The report adds: “Management forecasts and cash flow projections also indicate that the group is expected to generate positive cash flows on its own account through the remainder of 2012 and into 2013.

“However, the current economic climate is difficult and the directors consider that the outlook presents considerable challenges in terms of sale volumes and pricing as well as input costs.”

The consolidated accounts for Slieve Russell Hotel Ltd show that the group’s profit reduced the group’s accumulated losses to €48.7m last year.

The accumulated loss arises primarily from impairment charges of €43.3m on tangible fixed assets in 2009.

The figures show that interest payments totalling €1.7m reduced the firm’s profits to €3.98m last year.

The figures show the firm owes €65m to IBRC.

The profit in 2011 takes account of the non-cash depreciation cost of €665,000.

The figures show that the numbers employed at the group declined in 2011 from 189 to 188 with staff costs increasing marginally from €5.64m to €5.69m.