Pre-tax profits at the Louis Fitzgerald hotel and pub group last year plummeted by 58 per cent to €5.84 million due to the impact of Covid-19.
Accounts lodged by the group’s holding company, Burtse Ltd show that profits declined after revenues decreased by 26 per cent from €71.39 million to €53 million in the 12 months to the end of June last.
Government restrictions resulted in the closure of the group’s pubs for the final four months of the year and the drop in revenues will be even more acute in the current financial year due to Covid-19 lockdowns.
Supports
The accounts said that the current situation is dynamic “and there are continuous uncertainties surrounding the duration of the pandemic”. The accounts noted, however, that the group “is in a strong financial position to withstand potential future challenges in this context”.
The company is continuing to avail of various Government support schemes that have been put in place to support the hospitality industry during the pandemic, the accounts said.
Pay to directors, Louis Fitzgerald and his wife Helen, declined to €408,345 last year.
The two lead the family owned Louis group where the Fitzgerald adult children have prominent roles in the business. This includes well known Dublin City centre pubs the Stag’s Head, Kehoes and the Quays Temple Bar.
Numbers employed by the business decreased by 66 from 892 to 825 last year as staff costs, including directors’ pay, fell from €18.2 million to €14.7 million.
Funds
Burtse recorded the pre-tax profits of €5.8 million after taking account of non-cash depreciation costs of €3.4 million.
The group enjoyed operating profits of €7.17million and paid out €1.33 million in interest payments to give the pre-tax profit of €5.84 million.
Burtse recorded a post tax profit of €4.86million after paying out corporation tax of €984,922
The business had shareholder funds of €47.46 million including accumulated profits of €14.1 million.
Burtse’s cash funds reduced from €29.94 million to €5.6 million while total bank loans at the end of June last year had reduced from €49.7 million to €43.5 million.
