Hotel group’s pre-tax losses rise to €11m
Killarney Hotels Ltd runs the five- star Europe Hotel and& Resort, the five-star Dunloe Castle Hotel, and the four-star Hotel Ard na Sidhe.
Accounts filed by the Swiss-owned Killarney Hotels Ltd with the Companies Registration Office show the group’s pre-tax losses increased from €8.7m in 2010 to €11m to the end of Dec 2011.
The accounts do not provide a breakdown of each hotel’s financial performance.
The group’s losses increased in spite of the company recording a marginal increase in revenues from €8.43m to €8.49m — the increase arose from the operation of the firm’s 200-acre farm that increased revenues to €442,774.
However, the company’s cost of sales rose by 7% from €14.2m to €15.3m during the 12 month period to the end of Dec 2011.
According to the directors’ report, they “consider the performance of the company to be unsatisfactory, although in line with expectation”.
The company’s rates bill fell from €490,872 to €355,888.
Accumulated losses stood at €57.3m, with shareholder funds totalling €57.8m arising from share capital of €115m.
The average numbers employed increased from 117 to 121 with wage costs decreasing from €4.96m to €4.75m.
The directors state that “although the company made a loss for [the] year of €11m the directors have continued to prepare the statements on a going concern basis as they have received assurances from the company’s parent, Liehherr Hotels AG, that it will provide the company with funds as and when required to enable it to continue trading for the foreseeable future”.
The company spent €10.6m in acquiring property in 2011 and this followed a spend of €3m in 2010.
