INEC owner plunges into the red

The group that operates the INEC events centre in Killarney plunged into the red last year recording pre-tax losses of €606,228.

According to accounts for Gleneagle Holdings (Killarney) Ltd, the business sustained the loss after recording a pre-tax profit of €47,348 in 2012. The group’s revenues dipped last year from €22.19m to €21.74m in the 12 months to the end of December. The accounts also show the group’s operating profits dropped by 58% from €703,524 to €297,245.

Bank interest payments increasing by 37% to €903,473 resulted in the pre-tax loss, which also took account of combined non-cash depreciation and amortisation costs of €1.03m. The group’s cost of sales last year increased from €6m to €6.29m, with administrative expenses decreasing from €15.45m to €15.15m.

Numbers employed by the group last year fell from 374 to 357, with staff costs increasing marginally from €8.98m to €9m.

The principal activity of the group is the operation of a number of hotels, along with the operation of the INEC, which has recently staged performances by the likes of David Gray and Shane Filan, with Nathan Carter and Oliver Callan due to perform there this week.

A note attached to the accounts on the group’s going concern status states that “a cross guarantee is held by AIB for the debt of all companies, some of which are in a net liability position. The group has the support of its bankers and continues to be in a position to pay debts as they fall due”.

The group’s bank loans at the end of December 2013 stood at €29.92m.

According to the directors’ report, “the principal risk and uncertainty facing the group is a contraction in the tourism and hospitality sector, in addition to potential loss of revenue due to strong competition from other hotels in the locality”.

A note attached to the accounts states that “there are a number of legal actions pending against group companies for compensation claims for alleged incidents that occurred on the group company’s premises”.

The note adds that “the group’s solicitors have estimated that compensation payments will be nil in the best instances or €60,000 at the worst”.