Outdoor gigs help INEC operator reduce losses

The Gleneagle group's directors state that the 61% decrease in group revenues resulted in the business recording “a substantial loss in 2020”

The Gleneagle group was able to construct an outdoor stage at the INEC arena where a number of Irish artists performed in front of capped audiences. Photo: Dan Linehan

The operator of the INEC Arena concert venue and the Gleneagle Hotel in Killarney, Co. Kerry, is anticipating that revenues for 2021 will be 40% down on pre-Covid years.

A spokeswoman for the Gleneagle group said that with the aid of Government supports the business is confident that it will significantly reduce the losses recorded in 2020 and 2021.

The Gleneagle INEC business was able to boost revenues in 2021 with the construction of an outdoor stage where a number of Irish artists performed in front of capped audiences including Aslan, Ham Sandwich, Mary Coughlan, Sharon Shannon, Frances Black and Damian Dempsey.

The Gleneagle group spokeswoman was commenting on accounts for Gleneagle Holdings (Killarney) Ltd which show that the group recorded pre-tax losses of €2.3m in 2020. The 2020 pre-tax loss was more than a six-fold increase on the 2019 pre-tax losses of €361,332.

The 2020 losses followed the group sustaining a 61%, or €13.3m, revenue hit during 2020 due to the impact of the Covid-19 pandemic. The accounts show that revenues reduced from €21.75m in 2019 to €8.4m in 2020.

The Gleneagle spokeswoman said Government supports “are playing a fundamental role in allowing us to operate, keeping our doors open and staff employed during these uncertain times”.

The directors state that the 61% decrease in group revenues resulted in the business recording “a substantial loss in 2020”.

Numbers employed in 2020 more than halved from 315 to 150 as staff costs reduced from €9.3m to €4.07m. The business in 2020 received €1.16m in Government grants and it recorded its losses after combined non-cash depreciation and amortisation costs of €1.3m are taken into account.

The losses also take into account interest payments of €1.2m.

A note attached to the accounts states that “the group is well-positioned to return to full trading capacity on the lifting of Covid-19 related restrictions and the recovery of the tourism and hospitality sector”.

The note states that the directors’ review of budgets and cash flow forecasts “demonstrate that there is no material uncertainty regarding the group’s ability to meet liabilities as they fall due and continue in operational existence for the foreseeable future”.