Pre-tax profits at Skeffington Arms Hotel in Galway last year declined by 35% to €519,435.
The hotel will be enjoying its busiest week of the year this year with the staging of the Galway Races.
The firm’s accumulated profits totalled €5.9m last September, which included a cash pile of €587,278.
Shareholder funds totalled €9m.
New accounts filed by the Skeffington Arms Ltd show that the business recorded the drop in pre-tax profits as the firm’s gross profit decreased by 8% from €4.54m to €4.38m.
According to the directors’ report, “the results for the year and the financial position at the year end were considered satisfactory by the directors who expect growth in the foreseeable future”.
They state that “the company is well positioned within the hotel and leisure industry and hope to grow their market share in the future”.
On the firm’s future plans, the directors state that “the company plans to offer more mid-week and weekend packages to try and attract more people to the hotel as well as planning an update and refurbishment of the nightclub”.
The figures show that the firm recorded an operating profit of €657,714, while interest payments of €138,279 reduced the profits to €519,435.
The firm’s profits declined last year after a jump in administrative expenses going from €3.6m to €3.723m.
The company’s tangible assets have a book value of €6.5m.
The numbers employed by the firm increased from 98 to 102, with staff costs totalling €2.18m.
Total pay, including pension contributions for the three directors, John Callanan, Siobhan Howley and Nicola Dalton last year decreased from €293,514 to €288,578. The owners paid themselves a dividend of €1.5m in 2013, but no dividend was paid last year.
The profit for the Skeffington Arms coincides with Mr Callanan’s other hotel firm, Callanan Hotel Ltd that operates the four star Prince of Wales hotel in Athlone reducing its accumulated losses.
Accounts just filed by Callanan Hotel Ltd show that it recorded a profit of €195,610 in 2015 with accumulated losses falling from €17.28m to €17.09m at the end of September last year.
Numbers employed at the hotel last year increased from 79 to 84. with staff costs increasing from €1.3m to €1.4m.
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