One of the Trumps said last night that he couldn’t be more pleased with the financial performance of Doonbeg golf resort.
Overseeing the redevelopment of the Doonbeg course, Eric Trump was speaking yesterday about new accounts just filed with the Companies Office by Trump firm TIGL Ireland Investments Ltd.
They show the firm recorded losses of €2.5m in its first year of operation and expects to record further losses this year.
Mr Trump said last night that he “couldn’t be more pleased with the financial performance of Doonbeg... We are absolutely thrilled with how it is going”.
Mr Trump explained that the course had been in redevelopment throughout 2014, with work continuing on the course this year.
He said the course has enjoyed one of its best ever years in 2015, in spite of parts of it being out of action for a large part of the year.
Speaking from the Trump HQ in New York City, Eric Trump said: “The performance has been exceptional. There is a lot of money going into it.”
Republican presidential hopeful Donald Trump purchased the course in February last year for a reported €15m.
According to the new accounts, the losses in 2014 include €1.83m in acquisition expenses where various start-up costs were written off and hefty non-cash depreciation costs of €483,956 were incurred.
According to the directors’ report, the company “has commenced a redesign of the golf course which will be completed in 2016. As a result, the golf course will not be fully operational until 2016 and the directors forecast further losses in 2015”.
Numbers employed by the firm last year totalled 208 and staff costs at the resort for the 10 months to the end of December totalled €4m.
Those sitting on the board of TIGL Ireland Enterprises Ltd include Donald Trump, sons Eric and Donald Jr, daughter Ivanka, vice-president of the Trump organisation George Sorial; and Doonbeg golf resort general manager Joe Russell.
On future developments, the directors state they “are presently in the process of upgrading various facilities at the Trump International Golf Links and Hotel, Doonbeg”.
“It is expected that this will help to enhance the customer experience and have a positive effect on trading results for the entity.”
At the end of December 2014, the firm had reserves of €13m after a capital contribution of €15.25m from the Trump organisation is taken into account.
The company is due to lodge a €10m planning application at the resort for coastal protection in a bid to stop the Atlantic Ocean blowing away the links course.
The plan will involve the Trump firm putting in place around 200,000 tonnes of boulders to prevent further erosion of the course along a 2.8km stretch at Doughmore beach facing onto the course.
The resort warned that if the works, to be located at the toe of the sand dunes, are not undertaken, it could lose up to 100m of ground in certain places before 2050.
Mr Trump last year promised an investment of €45m at the resort.
However, that spend won’t happen without the coastal protection plan getting the go-ahead.
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