Hotel firm reports losses of €620k

The company that operates the four-star Rochestown Park Hotel in Cork went into the red in 2011, with losses of €620,758.

Accounts filed by Windsor Surprise Ltd with the Companies Registration Office show that the firm recorded the losses in 2011 after enjoying profits of €535,930 in the prior 12 months.

The profits of €539,930 for the previous year arose chiefly from a tax credit of €762,724.

However, pre-tax losses more than doubled from €226,794 to €620,758.

Revenues reduced by 4% from €8.89m to €8.51m in 2011.

A note points out that the firm’s earnings before interest, tax, depreciation, and amortisation (EBITDA) was €1m and it “is meeting its repayment obligations under its present banking facilities which were renewed on Mar 2012 on a six month rolling basis”.

The note continues: “The directors have prepared financial projections for the years to 31/12/2014 which demonstrate continued positive trading. These positive projections coupled with the continued banking support have led the directors to consider it appropriate to prepare the financial statements on a going concern basis.”

The report states that “the company will continue to consolidate its market share given the economic downturn facing the hotel sector”.

The business recorded a gross profit of €6.82m.

However, administration expenses of €6.5m and loan interest charges of €940,074 contributed to the loss.

The loss also takes account of non-cash depreciation charges of €780,371.

The average number of employees at the hotel in 2011 reduced from 186 to 168. Staff costs reduced from €3.79m to €3.62m.

The firm has bank term loans totalling €20.7m and the amount owed by the firm to directors in 2011 stood at €520,000.

The hotel did not return a call yesterday for comment on the accounts.