INEC operator returns to profit after 'staycationer' boost

The business which operates the four-star Gleneagle Hotel along with the INEC in Killarney recorded pre-tax profits of €1.64m

Irish singer-songwriter, Dermot Kennedy played three sold-out shows at Killarney's INEC this year. Picture: Valerie O'Sullivan

The operator of the INEC concert venue in Co Kerry last year returned to profit to record pre-tax profits of €1.64m.

Accounts filed by Gleneagle Holdings (Killarney) Ltd show the business returned to pre-tax profit after revenues surged by 56pc, from €8.4m to €13.16m.

The business operates the four-star Gleneagle Hotel along with the INEC in Killarney and the pre-tax profits of €1.64m follow a pre-tax loss of €2.3m in 2020 — a positive swing of €3.95m.

The business last year benefited from a Covid-19 ‘staycation dividend’ as the directors say the business performing well after re-opening in June 2021 “was due to strong pent-up demand in the domestic market”.

Along with the strong domestic demand, the directors say the business benefited from “considerable capital investment in the refurbishment of the hotel, leading to an increase in occupancy levels and higher average room rates being achieved”.

The group recorded an operating profit of €2.96m and interest payments of €1.3m reduced profits to the pre-tax profit of €1.64m.

The business also benefited from "other operating income" of €4.47m last year, compared to €1.16m under that heading in 2020.

The "other operating income" of €4.47m was made up of Employment Wage Subsidy Scheme (EWSS), Covid Restrictions Support Scheme and other Government supports.

The business also benefited from a commercial rates waiver in 2021.

The pre-tax profit last year also takes account of combined non-cash depreciation and amortisation costs of €1.4m.

Numbers employed at the business last year increased from 150 to 206, as staff costs rose from €4.07m to €6.64m. At the end of December 2021, the business had shareholder funds of €4.28m. The company’s cash funds increased from €585,065 to €2.36m.

On the performance of the business this year, a spokeswoman said  “recovery continued in 2022 albeit with a slow start due to restrictions in the early part of the year”.

She said: “We experienced a steady improvement from March onwards, coinciding with the return of full-capacity events, concerts and conferences.” 

The INEC staged many concerts and conferences this year that had been postponed in 2020 and 2021 due to Covid.

She said: “As a result, our summer, autumn and winter trading has been strong, however, rising utility costs have impacted the latter part of the year.” 

Those to stage sell-out concerts at the INEC this year included Dermot Kennedy, Gerry Cinnamon, Morrissey, Daniel O’Donnell, Joanne McNally and Tommy Tiernan.

Next year, the NEC is to stage nights planned by Mario Rosenstock, Conor Sketches Live, the Marty Party and Jason Byrne.

On contingent liabilities faced by the business, a note says the group operates with an insurance policy excess in relation to public liability actions brought against the business.

The note says the directors have taken advice from the group solicitors and a provision of €438,257 has been made.