The outlook for the exclusive Dublin members’ club, the Residence, is positive, with revenues to date already up this year on previous years.
That is according to a spokesman for Molana Ltd who said yesterday that costs at the business, that also includes the FortyOne restaurant, have now been satisfactorily consolidated.
The business, formerly operated by the Stokes brothers who were described as ‘delinquent directors’ by a High Court judge, was purchased from a receiver by businesswoman, Olivia Gaynor Long in 2010.
New accounts filed by Molana with the Companies Office show the firm recorded losses of €536,391 in the 18 months to the end of December 2013.
The spokesman said that the 2013 losses “included losses incurred in late 2012 arising from company restructuring, legacy fees and a number of one-off costs”.
The losses also include non-cash depreciation costs of €296,880 for the 18 months.
Today, the members’ club has over 1,000 members and the spokesman said: “The 2013 calendar year saw the business record a marginal profit, the first since Molana Ltd took over operations. Last year saw another slight improvement with indications for 2015 already suggesting further gains.
“The turnaround is largely attributable to the success of our multi-award winning Restaurant FortyOne, while membership is set to grow this year again, with gains in membership and general revenue coming through corporate membership and bookings in particular.”
The accounts show that Ms Gaynor Long has ploughed €1.83m into the business through interest free loans that included net advances of €499,536 in the 18 month period to the end of December 2013.
The abridged accounts show the firm’s losses in 2013 followed losses of €199,615 in 2012. The firm’s accumulated losses stood at €1.53m at the end of December and the figures show that the company is committed to paying an annual rent for the property ranging from €175,000 to €225,000 per annum.
The St Stephen’s Green business was taken over by Molana Ltd in June 2010.
The Residence, which today employs 50 people, was established in 2008 by Celtic Tiger poster boys, Christian and Simon Stokes.
However, escalating financial problems within the twin’s companies meant that the business was put into receivership in early 2010.
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