Bankers roll up interest at five-star hotel
Accounts filed by his company, Dalegrove Taverns Ltd, which operates the Kerry hotel, confirm that since early 2009, the company’s bankers have rolled up the interest due on company borrowings.
The firm recorded a pre-tax loss of €790,779 in 2011, which followed a pre-tax loss of €780,565 in 2010. The loss takes account of non-cash depreciation costs of €448,801.
Accumulated losses at the firm as of the end of 2011 stood at €11.7m.
The company had bank loans and borrowings totalling €12.4m.
The abridged accounts show that Dalegrove Taverns’ gross profit increased from €2.59m to €2.9m.
The directors state that increase in turnover and prudent cost management resulted in an operating profit before depreciation of €89,775 in 2011.
The report states: “The results for the year and the financial position at the year end were considered reasonable by the directors who expect similar challenging trading conditions in the foreseeable future.”
Mr O’Reilly also operates hotels in Kilkenny and Limerick
On future developments of Dalegrove Taverns, the directors state that the company has operated at an improved level of activity in 2011 and in 2012. They state: “This trend is expected to continue into 2013.”
The directors state that due to trading difficulties and decreasing levels of parent company support, bank interest on company borrowings has been rolled up since early 2009.
The report states: “The directors are confident the company’s bankers will, in the short term, allow bank interest roll up to continue, in order to allow the company to continue to trade.”
The figures show that bank loan interest payments totalled €355,538 in 2011.
The directors state that they are confident their actions plus continued support from the company’s bankers and where possible, the company’s parent company will ensure that the company will continue to trade as a going concern in the ensuing year.
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