Conrad sees strong rise in both profit and revenue

Pre-tax profits at the firm that owns the exclusive five-star Conrad Hotel in Dublin more than quadrupled last year to €915,575.

Conrad sees strong rise in both profit and revenue

Newly-filed accounts for Earlsfort Centre Hotel Proprietors Ltd — the 191-bed hotel’s holding company —also show a 6% rise in revenues to €12.16m.

In the accounts, the firm’s directors state that they believe the 2014 forecast will trend ahead of plan. They confirm that shareholders have agreed to a significant injection of equity into the business to fund a capital expenditure programme.

Shareholders last month injected nearly €4.3m to fund the capital works.

Earlsfort Centre’s directors’ report also states that management was pleased with the Conrad’s 2013 trading performance and with the performance to date in 2014, adding that cash flow remains strong.

“The domestic consumer market has stabilised and the business from the US corporate sector and the Hilton worldwide network continue to generate significant business,” they said.

The company’s board is also in the process of finalising a debt package with a new debt provider.

Former billionaire developer, Bernard McNamara purchased a 45% share in the business in 2007 but resigned as a director in February 2012.

The hotel recorded an operating profit of €1.2m in 2013. That followed an operating profit of €660,105 in 2012.

However, net interest payments totalling €351,710 reduced profits to €925,575.

On the firm’s going concern status, the directors said that the firm continues to generate cash flow from trading.

The accounts disclose that the firm has a management agreement with shareholder Conrad International Corporation and incurred €339,013 in management charges and related fees.

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