A LOSS-MAKING leisure centre on Clare’s north coast is planning to establish a new surf centre in a bid to turn around the facility’s flagging fortunes.
Last year, Lahinch Seaworld and Leisure Centre plc recorded a loss of €76,356, bringing its total losses to €748,340.
The publicly owned centre recorded the losses after revenue dropped 15 per cent from €669,301 to €565,042 in the 12 months to the end of last October. Clare County Council guarantees the centre’s loans.
The company directors said in a statement they had successfully restructured the centre’s bank loans and plan to establish an adventure centre in order to generate revenue.
The directors said they planned “to revive the company into a versatile and adaptable business that caters for the entire community. The directors have set out a five-year plan to improve the facilities at Lahinch Seaworld.”
Seeking to capitalise on Lahinch’s reputation as a surfing venue, the directors said the planned facilities included a new surf centre and multipurpose community facility.
The centre’s loan facility is for €350,000, which includes its core overdraft facilities, and is due to be repaid over 15 years.
The directors said the fall in turnover for the year can principally be attributed to a reduction in visitor numbers.
“This reduction in activity had a negative impact on profitability which was mitigated to some extent by initiatives taken by the directors and management around cost containment and working capital managements,” they said.
The company’s losses also drew the attention of its auditors, Deloitte Touche.
They said the firm incurred a loss of €76,356 to the end of the year covered and had net current liabilities of €185,567 at the end of the year.
“These conditions indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern,” the auditors said.
The number employed at the centre was reduced last year from 28 to 23, resulting in staff costs falling from €426,144 to €365,589.
