Old Head of Kinsale golf course operator shoots €3.54m profit

Ashbourne Holdings Ltd saw a 9.5% decline in pre-tax profits in what its directors describe as a 'strong performance'

Profitability and revenues have continued in 2023 with another full year of uninterrupted trading.

Pre-tax profits at the operator of the exclusive Old Head of Kinsale Links (OHKL) golf course in Co Cork last year declined by 9.5% to €3.54m.

New accounts show that pre-tax profits declined at Ashbourne Holdings Ltd as revenues remain flat at €12.76m in “a strong performance” for the complex during the year.

Green fees for a round of golf at the Old Head of Kinsale Links cost €450 for ‘High Season’ in 2024 and the golf complex attracts 20,000 visitors annually with 50% originating from the USA and 80% from overseas.

The directors state that the company “has again traded profitably in 2023 owing to the continued demand of both the domestic market and international visitors for the full year similar to 2022”.

They state that profitability and revenues have continued in 2023 with another full year of uninterrupted trading. The directors state that the company operates a golf complex “at the premium end of the international golf market”. They state that:  

It is in competition with other internationally renowned golf courses. The company is engaged in continuous upgrading of the complex to retain this status.

Higher costs resulted in the company’s operating profits declining by 10% from €4.25m to €3.82m.

Interest payments and similar charges of €285,705 resulted in a pre-tax profit of €3.54m. The company recorded a post-tax profit of €2.98m following a corporation tax charge of €559,509.

At the end of December last, the company’s shareholder funds totalled €14.68m. 

Cash funds increased from €6.77m to €7.12m.

In December 2020, the company received a €6.25m loan from a related party to facilitate the refurbishment and upgrade of the complex’s suites.

The directors state that payments continue under terms of the loan agreement with advance repayments on this loan in 2023 “following a strong performance of the year with resulting increases in cash flow”.

Costs and directors' pay fell

The complex employed 99 last year and staff costs decreased from €3.94m to €3.77m. Directors’ pay declined from €653,276 to €640,402. The profit takes account of non-cash depreciation costs of €1.32m.

In July, Ashbourne Holdings failed to secure planning permission for a ‘five-star’ luxury farmhouse-style accommodation a short distance from the golf course. 

An Bord Pleanála overturned a grant of permission issued by Cork County Council in July last year and the case came before the board following four third-party appeals. 

The scheme involved the demolition of a farmhouse dwelling, agricultural buildings and the construction of 24 guest suites in six residences on a farm property around 500m from the golf course.

A Tourism & Economic Statement lodged with the application stated that the five-star ‘farmhouse’ style accommodation proposal is part of a series of accommodation developments planned by OHKL valued at €32m.

The other two elements of the accommodation proposals involve up to 40 suites at the Pier Rd Townhouse in Kinsale, with a rooftop bar and an extension to the clubhouse that includes five additional bedroom suites.