Pre-tax profits at the Cusack Group’s four-star Knightsbrook Hotel and Golf Resort last year declined by 8% to €759,973.
The Trim, Co Meath hotel employs 178 people and accounts just filed with the Companies Office show it sustained the drop in pre-tax profits after its gross profit dipped from €3.33m to €3.32m in the 12 months to the end of December 2011.
According to the directors’ report, “the hotel and golf resort experienced very difficult trading conditions during the year”.
Set on 186 acres of parkland, the business includes a championship golf course. In 2010, the company’s banking facilities were taken over by Nama.
The directors’ report states: “Due to the prevailing adverse economic conditions, the company’s trading environment continues to be difficult.
“The company is still faced with the onerous task of managing and controlling its cost base and increasing sales.
“This, however, has become increasingly difficult not only for the company but for the hotel and hospitality sector as a whole, which has been hit hard by the recession and it is expected this trend will continue for the foreseeable future.”
Referring to the transferal of banking facilities to Nama, the directors’ report states that the company “continues to rely on and has the support of its shareholders but also relies on the support of Nama and as a result the directors have produced a business plan for Nama”.
The figures show that the firm recorded an operating profit of €844,770 last year, following an operating profit of €908,095 in 2010. The firm had a shareholders’ deficit of €974,103 at the end of last December. Cash during the year decreased from €766,168 to €494,182.
The profit takes account of non-cash depreciation costs of €122,353.
The directors’ aggregate remuneration last year dropped from €73,855 to €68,467.
© Irish Examiner Ltd. All rights reserved