The directors of the company that runs the Odessa Club and Restaurant in Dublin have outlined the difficulties the business is facing in their latest accounts, which show accumulated losses of €91,511 at the end of the year.

Abridged accounts for the year to the end of last September do not give a profit figure but show that the accumulated losses rose from €19,429 at the end of the previous period.

Odessa Club and Restaurant Ltd runs an private members' club and an associated restaurant that is open to the public, on Dame Court, Dublin 2. The owners are Eoin Foyle, Peter O'Kennedy and Oda O'Carroll.

Letter of guarantee

The accounts show that during the year, Mr O’Kennedy transferred 10 of his 50 shares to Mr Foyle, so that the latter had 60 of the company’s 150 issued shares at year’s end. The accounts also state that Mr Foyle has given a letter of guarantee to a bank in the amount of €450,000.

In notes to the accounts, the company says the deterioration in the economy has had a very detrimental impact on trading from which the company has been slowly recovering over the past few years.

The directors are constantly reviewing overheads to enable cost savings to be made and to continue to reduce the cost base. “However, there was a large amount of spending required on repairs and maintenance and to re-upholster seating, etc, in the current year,” it said. The company has also reviewed its pricing structure, according to the accounts. The directors, Mr Foyle and Mr O’Kennedy, have prepared projected cashflow statements and expect the company to continue to meet its liabilities.

The accounts show creditors were owed €650,756 within one year and €275,072 in more than one year.