The company that operates the Denis O’Brien owned four-star Ballynahinch Castle hotel in Co Galway last year returned to operating profit after revenues surged.
New accounts filed by Mr O’Brien’s Yelsea Ltd show that the hotel firm recorded an operating profit of €231,719 which followed an operating loss of €1.2 million in 2020 — a positive swing of €1.44 million.
The business enjoyed the operating profits of €231,719 as revenues increased by 44 per cent from €3.34 million to €4.82 million.
Directors for Yelsea Ltd — which include Mr O’Brien’s wife, Catherine — state that the hotel company “has traded well" since re-opening after a Covid-19 enforced shutdown until June 2nd of last year.
However, the firm recorded a pre-tax loss of €396,636 last year after interest payable and similar expenses of €628,355.
The bulk of the interest payable at €452,186 was on a shareholder’s loan and this contributed to a total of €2.84 million interest payable on the shareholder’s loan at the end of 2021.
The shareholder’s loan to the Denis O’Brien controlled business at the end of last year totalled €15.37 million.
The directors state that “2021 proved a challenging year with the worldwide Covid-19 pandemic having a significant impact on the business and the hospitality sector globally.”
The business was able to record the operating profit of €231,719 after taking into account ‘other operating income’ of €1.23 million that included Covid-19 wage subsidy scheme payments of €1 million.
A note attached to the accounts states that “the company was entitled to these subsidies following the decline in revenues as a result of Covid-19”.
The operating profit also takes account of non-cash depreciation and amortisation costs of €1.28 million.
The numbers employed at the castle hotel last year increased from 61 to 85 as staff costs increased from €1.998 million to €2.3 million.
Accumulated losses at the company at the end of 2021 totalled €5.3 million. The company’s cash funds increased from €597,429 to €2.1 million.
Mr O’Brien paid about €6.5 million for Ballynahinch in 2013 and has extensively refurbished the property.
The Ballynahinch company valued its fixed assets at €17.6 million at the end of 2021.
