Hotel group’s operating profits rise to €26m

Operating profits at the Moran Hotel Group last year went up by 14% to €25.94m after the group enjoyed an increase in revenues.

Figures filed with the companies office show that T&S Taverns Ltd recorded the €3.2m increase in operating profit after revenues increased by 10%, from €81.36m to €89.6m, in the 12 months to January 31, 2013.

The group — headed by Limerick businessman Tom Moran — recently restructured its finances, striking a deal with its lenders that resulted in the group’s debt burden reducing from €700m to around €225m.

The restructuring involved a debt for equity swap with AIB and Bank of Ireland, with the Moran family retaining a significant shareholding in the business.

Referring to the new lending agreement and the group’s recent performance, the directors state that the group “continues to trade ahead of the market in gross operating profits and earnings before interest, tax, depreciation, and amortisation”.

The report states: “The new banking agreement will allow the group to move forward with the full support of its bankers.”

The accounts show combined non-cash amortisation and depreciation costs totalled €8.2m and interest charges of €22.1m resulted in a pre-tax loss of €4.4m.

The group operates 10 hotels across the UK and Ireland.