Pre-tax losses at Kerry hotel group plunge to €37m after writedown
Killarney Hotels Ltd operates the award-
winning five-star Europe Hotel & Resort and
the five-star Dunloe Castle Hotel, along with
the four-star Hotel Árd na Sidhe.
Accounts recently filed by the Swiss-owned
firm to the companies office show that the
group recorded the loss after writing down its
property by €28m.
The pre-tax loss of €36.9m last year followed
a pre-tax loss of €11m in 2011. The firm
incurred the increased losses in spite of
revenues increasing by 26% from €8.49m to
€10.69m in the 12 months to the end of Dec
2012.
However, the company’s cost of sales also
increased — by 8% — from €15.3m to €16.6m
during the 12-month period.
The directors’ report says they “consider the
performance of the company to be
unsatisfactory, although in line with
expectation”.
The company recorded an operating loss in
2012 of €5.9m and this followed an operating
loss of €6.9m in 2011. The accounts include a
depreciation charge of €8m. The average
numbers employed increased from 121 to 125
with wage costs rising from €4.87m to €5.6m.
In their report, the directors state that
“though the Irish tourism sector is
experiencing a revival, there continues to be
challenges in the hotel industry in Ireland”.
They directors state that “although the
company made a loss for year of €35.7m the
directors have continued to prepare the
statements on a going concern basis as they
have received assurances from the company’s
parent, Liebherr Hotels AG that it will
provide the company with funds as and when
required to enable it to continue trading for
the foreseeable future”.
Shareholder funds at the end of last year
totalled €22m. The firm’s fixed assets are
valued at €63.8m.
The directors believe the Europe Hotel has
long-term value, reinforced by a recent
substantial refurbishment.
