Hotel family nets €4.5m dividend

The O’Sullivan family that owns the four-star 153-bed Galway Bay Hotel shared a dividend of €4.5m last year, new figures show.

The O’Sullivan family also owns the 182-bed Hodson Bay Hotel and 167-bed Sheraton hotel in Athlone, Co Westmeath.

The dividend has been paid by Galway Bay Hotel, Conference and Leisure Ltd to the family’s Shermond Holdings and the largest shareholders in that firm include Aidan O’Sullivan, Brendan O’Sullivan, Ciara O’Sullivan and Johnny O’Sullivan who each have a 23.5% stake in the firm.

The pay-out occurred during a period when pre-tax losses increased three fold at Galway Bay Hotel, Conference and Leisure Ltd to €173,505 in the 12 months to the end of Feb 29, 2012. Operating profits reduced by 7.5% from €1.5m to €1.38. Gross profit dropped by 5% to €4m. However, bank loan interest repayments totalling €1.56mn resulted in the pre-tax loss of €173,505. It was €57,492 in 2011.

The dividend payout and the loss resulted in the firm’s accumulated profits reducing from €8.9m to €4.2m last year.

The high bank loan interest repayments stem from the firm’s bank loans of €18.2m. The loss takes account of non-cash depreciation charges of €519,356 last year.

The company employed an extra staff member last year, bringing the total to 178, with staff costs increasing marginally to €3.06m.

Administrative and establishment expenses at the Galway bay hotel firm last year reduced from €2.4m to €2.35m. Market costsreduced from €310,908 to €285,642.

Cash at the firm last year reduced from €519,184 to €125,66.