Revenues at the group which operates the K Club hotel and golf resort increased by almost €10 million in 2022 as the business rebounded from the business impact of the pandemic.
New consolidated accounts filed by Bishopscourt Investments Ltd and subsidiaries show that revenues increased by €9.97m or 69 per cent rising from €14.5 million to €24.48 million.
The group’s pre-tax losses for the Co Kildare hotel and resort increased by 13 per cent from €1.94 million to €2.19 million.
The chief factor behind the increased pre-tax losses was the group’s non-cash depreciation costs rising by €131,000 from €3.255 million to €3.386 million.
The directors state that they are satisfied with performance of the business during 2022 and the group’s profit before depreciation and amortisation charges amounted to €1.2 million which compared to €1.3 million for 2021.
Nursing homes investor, Michael Fetherston purchased the resort made up of a hotel, country club and two golf courses from previous owner, Michael Smurfit for around €65 million in February 2020.
However, the business remained impacted by Covid-19 for more than the first two and a half years of Mr Fetherston’s ownership.
On the risks facing the business, the directors state that “the company must continue to compete successfully to maintain and develop a strong market position as it continues to face strong competition”.
They state that “global growth patterns may affect demand and pricing for Bishopscourt Investment Ltd”.
Concerning events since the end of December 2022, a note states that “the company has been keeping a close eye on the inflation and cost of living effects to the company”.
As Covid-19 restrictions eased with the opening of hotels in June 2021, numbers employed in 2022 increased by 100 from 155 to 255 as staff costs increased by €4.23 million or 70 per cent rising from €6 million to €10.24 million.
The accounts show that the group’s net liabilities stood at €28m at the end of 2022 and addressing the business’s going concern status, a note states that the ultimate controlling party has indicated that for at least 12 months from the date of approval of these financial statements, he will continue to make available such funds as are needed by the company.
At the end of December last, the business had a €55.43 million loan from its shareholder and €12.55m in accrued interest on shareholder loans.
The group’s cash funds during 2022 decreased from €3.6million to €2.2 million.
The accounts put a book value of €61m on the group’s tangible assets. The directors’ valuation is not supported by a formal external valuation report but the directors “have considered current market data, future plans for development of the fixed assets and improving market sentiment”.
The directors state that they recognise the risks associated with their valuation exercise given the lack of comparable market transactions upon which to base such valuations.
At the end of December 2022, the group had a shareholders’ deficit of €28.1 million made up of accumulated losses of €60.44m offset by €32.3m in a share premium account.
