NolaClan hospitality group confident of return to profitability

Future sales growth will be driven by increased late-night bar sales once normal trading conditions resume

NolaClan operates the Oyster Tavern in Cork and Mrs Robinson’s in Greystones.

Alan Clancy’s NolaClan hospitality group sustained an 82pc or €19.68m hit to revenues during the Covid-19 pandemic hit 2020.

NolaClan operates the successful ‘House’ venues on Leeson Street in Dublin, Limerick and Belfast while the group’s portfolio of venues includes bars, restaurants, nightclubs and hotels.

Other venues include 37 Dawson Street and 9 Below in Dublin, the Oyster Tavern in Cork and Mrs Robinson’s in Greystones.

New accounts show that the group sustained a pre-tax loss of €5m in 2020 as a result of the plummeting revenues brought about by Covid-19 enforced shutdowns.

The accounts lodged by NolaClan Ltd show that revenues decreased by €19.68m from €23.96m to €4.28m for 2020.

The €5m pre-tax loss for 2020 followed a pre-tax loss of €1.69m for 2019.

The directors state that the loss for 2020 “includes a significant investment in resources to support all venues during the Covid-19 pandemic.” They add that “however, with the ongoing support from shareholders, we are confident the group will return to profitability once normal trading conditions in the hospitality sector resume.” The directors state that future sales growth in the group will be driven by increased late-night bar sales once normal trading conditions resume.

The directors state that during Covid-19 impact on business, all discretionary spend was eliminated and all overheads eliminated.

They stated that all non-committed capital expenditure was cancelled or postponed.

A note attached to the accounts states that the group had a negative earnings before interest, tax, depreciation and amortisation (EBITDA) of €3.53m for 2020.

At the end of December 2020, the group had a shareholders’ deficit of €6.87m that includes accumulated losses of €9.57 million off-set by a share premium account of €2.98m. A deficit of €287,620 in 'minority interests' contributed to the overall shareholders' deficit.

The group’s cash funds during 2020 reduced from €1.13m to €220,328.

Numbers employed during 2020 reduced from 378 to 139 as a result of the Covid-19 shutdowns and staff costs declined sharply from €7.1m to €2.27m.

The directors are listed as Alan Clancy and Gerald Conlan and directors’ pay was slashed by 79pc from €412,363 to €87,212.

The accounts disclose that NolaClan received €1m in Government grants during the year.

The loss in 2020 takes account of exceptional costs of €430,530 concerning the write-off of loans due and interest payments of €104,037 which were down sharply on the interest payments of €850,779 in 2019.