Five-star K Club golf resort suffers loss of €3.75m

Pre-tax losses at the group that operates the five-star K Club golf resort, in Co Kildare, totalled €3.725m in 2013, new figures show.

According to accounts filed by Bishopscourt Investments Ltd and subsidiaries, the group recorded the loss in spite of revenues increasing from €11.6m to €11.9m in the 12 months to the end of December 2013. The directors’ report states that subsequent to December 2013 “the group has incurred further losses on ordinary activities after interest”.

The loss in 2013 followed a €7m pre-tax profit in 2012 that arose from an exceptional gain of €30m and a fixed asset impairment of €16.2m. The resort is currently undertaking a €20m expansion being built by Bernard McNamara that includes an additional 70 bedrooms, the conversion of a former spa into a 25,000 sq ft conference centre and a second bar.

Revenues at the resort last year increased by 10% to around €13m and CEO Michael Davern said in a recent press interview that the K Club was ‘operationally break-even’ in 2014.

The new €20m extension is due to be complete in August of this year. The 2013 loss takes account of interest payments of €738,365 — down significantly on the €1.3m paid out in interest payments in 2012. The loss in 2013 also takes account of non-cash depreciation costs of €2.734m. Numbers employed at the Michael Smurfit-owned resort that staged the 2006 Ryder Cup declined marginally to 144 in 2013 with staff costs declining from €4.98m to €4.84m.