Pub and hotel group directors take big pay rise

Louis and Helen Fitzgerald gave themselves a four-fold pay increase last year to €1.9m as pre-tax profits increased by 21% at their Dublin-based pub and hotel group.

New accounts filed by Ocsas Holdings Ltd to the Companies Office show that the Louis Fitzgerald pub, restaurant and hotel group recorded a pre-tax profit of €4m in the 12 months to the end of June 30th last following a pre-tax profit of €3.3m in 2012.

Group profits rose last year despite revenues falling marginally from €54.31m to €54.29m.

Louis and Helen Fitzgerald are the group’s only serving directors and the accounts show that their aggregate remuneration increased by 420% going up from €442,304 to €1.9m last year.

However, this is some way off the €8.6m the two received in aggregate remuneration in 2009.

A breakdown of the emoluments for the two last year show that their remuneration increased from €438,446 to €1.326m with pension payments increasing from €3,858 to €575,000.

The group owns some of the best-known pubs in Ireland: the Quays pubs in Temple Bar, Dublin and Galway, along with the Stag’s Head, Kehoes and the Big Tree in Dublin.

The group also operates the Poitin Still at Rathcoole, the Arlington Hotel in Dublin and the four-star Louis Fitzgerald Hotel at Newlands Cross.

According to the directors’ report attached to the accounts, “despite difficult trading conditions and the pressures on the licensed trade and hotel industry as a whole, the group achieved an operating profit

This followed an operating profit of €8m in 2012.

The directors state that the group’s earnings before interest, taxation, depreciation and amortisation, along with the group share of a joint venture was €12.3m compared to €12.7m in 2012.

The report states: “The directors are of the view that despite the current difficult economic climate the actions taken to reduce cost, introduce improved work practices and efficiencies, and developing new marketing strategies to generate extra business will ensure that the business will continue to be profitable.”

The report continues: “This will also ensure that when the current economic climate improves we will be in a strong position to take immediate advantage of improved circumstances.”

The group reduced its bank loans during the year from €82.8m to €79.7m. Net bank interest payments of €5m reduced the profit before interest from €7.5m to €4m.

Cash reserves decreased from €22.3m to €20.3m, with net assets increasing from €59.8m to €62.76m.