Pretax profits at former Sean Quinn hotel, the Slieve Russell, in Co Cavan more than doubled to €5.02 million last year.
Slieve Russell Hotel Property Ltd recorded a 108 per cent surge in profits as revenue increased almost threefold from €6 million to €16.47 million in the 12 months to the end of June last, its latest accounts show.
In a note with the accounts the directors said that trading results since the end of last June had “been excellent and have outperformed the original budget prepared for the hotel with the business back on track to return to pre-Covid-19 trading levels”.
The note said the company’s 2023 budget indicated that a positive earnings before interest, tax, depreciation and amortisation (EBITDA) would be achievable.
In the 12 months to the end of June last the hotel business benefited from “other operating income” of €3.28 million that included Government Covid-19 wage subsidy scheme payments and the Covid restrictions support scheme (CRSS).
Numbers employed by the firm last year increased from 208 to 240 and staff costs more than doubled from €3.75 million to €7.38 million.
The accounts said that the board has continued its investment in the Slieve Russell property over the course of 2022 and into 2023 to ensure the property is maintained to the highest possible standard.
Covid-19 restrictions continued to impact business
however, after many of the restrictions were removed in January 2022, the hotel traded well.
The firm recorded an operating profit of €5.5 million and interest costs of €489,000 reduced the hotel’s profit to a pretax profit of €5.02 million. The company recorded a post-tax profit of €4.389 million after paying corporation tax of €643,000.
The profit last year takes account of non-cash depreciation costs of €856,000.
At the end of June 2022 the amount owed by the hotel’s parent firm to Irish Bank Resolution Corporation had reduced to €66.07 million with a repayment of €2.5 million.
The profits last year resulted in the company’s shareholder deficit reducing from €46.09 million to €41.7 million while the company’ cash funds increased from €3.2 million to €6.58 million.
With the collapse of the Quinn empire, the IBRC, formerly Anglo Irish Bank, assumed control of the Slieve Russell hotel when a receiver was appointed in April 2011.
