Hayfield Manor and Great Southern owner sees profits jump

The amount paid to key management personnel made up of managers and members of the Scally family amounted to €304,824 for the period. File picture: Denis Scannell

The Kerry-based hotel group that operates the five-star Hayfield Manor in Cork city last year enjoyed a post-covid-19 lockdown boost as pre-tax profits increased by 21% to €5.03m.

New consolidated accounts filed by Tripoint Investments Ltd show that the group achieved the profit increase as revenues more than doubled from €9.9m to €23.23m in the 16 months to the end of April 2022. The prior period was for a 12-month period.

The business is owned by the Scally family and accounts also include the performance of the Scallys' four-star Killarney Royal Hotel and the Great Southern Hotel in Killarney.

The directors state that the business performance “was strong due to demand for hotel breaks post covid lockdowns but was also helped by Government supports for the hospitality sector during this period”.

The group achieved the profits after recording ‘other operating income’ of €6.64m that comprised of Government grants of that amount during the pandemic-hit period over the 16 months. This followed grants of €1.26m under the same heading in the prior 12 months.

Numbers employed by the group increased from 223 to 295 as staff costs more than doubled from €4.29m to €10.4m.

The accounts disclose that a management charge of €3m was paid to Halfpoint Investments ULC in April 2022. Halfpoint Investments became the ultimate parent company of the group on April 11, 2022.

The pre-tax profit of €5.03m takes account of non-cash depreciation costs of €1.72m and interest costs of €273,623. The group recorded post-tax profits of €3.88m after paying corporation tax of €1.14m.

At the end of April 2022, the group had shareholder funds of €44.4m that included accumulated profits of €32.25m. The group’s cash funds declined from €3.16m to €160,669.

The amount paid to key management personnel made up of managers and members of the Scally family amounted to €304,824 for the period. The directors, Joseph Scally, Margaret Scally and Mark Scally state that there are a number of hotels which would be in direct competition to the group.

However, the directors say they continue to market the group hotels, known as the ‘Hayfield Family Collection’ as a provider of high-quality service and offer competitive rates which the directors feel give the hotels a competitive advantage.

On the economic risk facing the company, the directors say that the economic risk environment is uncertain post covid-19. The note states that the directors have addressed these risks through taking the necessary steps to reduce costs wherever possible and continuing to market the company as a provider of high-quality services.

They say that the group is exposed to rising energy costs as with others in the sector and is looking at renewable solutions to manage it going forward.