The sharp rise in profits is due in part to €2.68m that was owed by the hotel company, Shorelark Ltd, to Mr McNamara co-owned firms being written off, as the amounts due are now statute- barred.
A note attached to the accounts shows that €1.7m owed to the now dissolved Mr McNamara firm, Castlehope Ltd, was written off and €977,592 to another dissolved Mr McNamara firm, Adenbell Ltd, was written off.
The amounts owed are now statute-barred and the firm recorded an exceptional gain of €2.68m as a result.
Gross profit increased by 6% to €13.3m.
This contributed to the firm’s operating profits more than doubling going to €1.56m in 2015.
Rezidor Hotels — under the Radisson Blu brand — operates the 272-bedroom hotel on Shorelark Ltd’s behalf. In 2015, it received from Shorelark €1.14m in management fees and contributions to a Rezidor Hotel Group marketing fund.
Mr McNamara resigned as a director of Shorelark Ltd in February 2011. Mr McNamara’s long-term business partner, hotelier and developer Jerry O’Reilly, is a shareholder and remains a director of the firm.
The profit last year contributed to the firm’s accumulated losses falling from €9.44m to €5m.
Its cash pile, meanwhile, increased from €827,609 to over €1.29m. According to the directors’ report, “the directors are satisfied with the company’s performance during the year.
Future plans are for the continued profitability of the company and improvement of the deficit.”
Staff numbers employed by the hotel total 169 and staff costs increased from €4.67m to €4.85m.
The accounts disclose that in 2001 the company entered into a 20-year lease with Mr McNamara and Mr O’Reilly for the lease of the hotel property.
At the end of the year, the company owed €2m to the McNamara-O’Reilly partnership.
The annual rent to the partnership is €4.5m, but the partnership waived €2.9m of the rent due during 2015.
At the year of last year, Shorelark Ltd owed €5.1m to Michael McNamara & Co.