Pre-tax profits at the Skeffington Arms Hotel in Galway last year fell 40% to €801,698.
Accounts filed by the Skeffington Arms Ltd show that the business recorded the drop in pre-tax profits as its gross profit increased 8% from €4.2m to €4.54m.
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”.
The figures show that the firm recorded an operating profit of €938,775 but interest payments of €139,689 reduced the profits to €801,698.
The firm’s profits declined last year after a sharp jump in administrative expenses going from €2.724m to €3.6m.
The firm’s accumulated profits totalled €5.45m last September that included cash of €782,000. Shareholder funds totalled €8.57m. They state “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 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”.
The company’s tangible assets have a book value of €6.5m. Some 98 workers are employed by the business with staff costs totalling €2m. Remuneration, including pension contributions, for the three directors, John Callanan, Siobhan Howley and Nicola Dalton last year increased from €283,534 to €293,514.
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, Co Westmeath reducing its accumulated losses.
Accounts filed by Callanan Hotel Ltd show it had a profit of €486,171 in 2014 with losses reducing from €17.775m to €17.288m at the end of September last.
The firm reduced its loans from €19.9m to €19.76m made up of €13.5m in bank loans and €6.3m in other loans.
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