Ryan Hotels reported a 4 per cent rise in profit before tax to €9.3 million (£7.3 million) from €8.9 million last year, despite charging additional depreciation of €941,000 as a result of the implementation of new accounting rules.
Turnover at the group was up 21 per cent to €56.3 million, according to its preliminary results for the year ended January 25th, 2001. Earnings before interest, tax, depreciation and amortisation jumped by 23 per cent to €14.5 million.
The additional depreciation charge has had no effect on the group's cashflow, it said. Under previous accounting rules for the hotel sector, no depreciation was charged against profit in respect of hotel properties, whereas the new rules specifically require hotel companies to depreciate properties.
Occupancy for the group grew to 81 per cent, with the average yield per room sold increasing by 5 per cent during the period, it said.
But the company said restrictions put in place following the outbreak of foot-and-mouth disease has had an effect on group trading at the start of its current year.
"The impact of this is being felt more acutely in the Irish and UK properties than on the Continent, where we are not experiencing any significant adverse effects," the company said.
City centre locations in Ireland have been affected with the cancellation of major sporting fixtures, conferences and festivals.
"However, these are generally maintaining occupancy levels, albeit at a lower yield," it said.
West coast properties have been most affected by movement restrictions, it added.
But chief executive Mr Patrick Coyle stressed that the group was not issuing a profits warning.
"It is more a signal that we have been affected, specifically on the west coast," he said.
Mr Coyle also said he did not expect the closing of a kitchen at the Galway Ryan Hotel by the Western Health Board over public health concerns in March to have an impact on the company.
"It was a terrible situation and an unacceptable breakdown in our system. "Corrective action was taken and it was re-opened within 72 hours," he said. "But we're not seeing any adverse effect."
