Pretax losses narrowed at the group that operates the K Club resort in Co Kildare by 41 per cent to €1.94 million in 2021. New consolidated accounts filed by Bishopscourt Investments Ltd and subsidiaries show losses reduced sharply as revenues surged 71 per cent to €14.5 million.
The pretax losses of €1.94 million for 2021 follow pretax losses of €3.3 million for 2020. The losses take into account non-cash depreciation costs of €3.25 million.
The business’s revenues recovered in 2021 as Covid-19 restrictions were eased, but revenues were still off pre-Covid-19 revenues of €17.99 million. The business was shut for the first five months of 2021 due to Government pandemic restrictions.
The directors said they were satisfied with the performance of the business during 2021. They stated that the group recorded a profit of €1.3 million before interest, depreciation and amortisation charges.
Nursing homes investor Michael Fetherston purchased the resort, which includes 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 most of the first 2½ years of Mr Fetherston’s ownership. The resort is set to host the Irish Open this summer after extensive work on the club’s golf courses.
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”.
As Covid-19 restrictions eased with the opening of hotels in June 2021, numbers employed increased from 105 to 155 and staff costs rose from €3.85 million to €6 million.
The accounts show that the group’s net liabilities stood at €25.9 million at the end of 2021, 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.
The directors state that at the time of signing the financial statements on January 10th this year, the directors state that they are reviewing increasing inflation and the economic climate.
The group’s cash funds during 2021 increased from €1.55 million to €3.6 million.
The accounts put a book value of €60.09 million on the group’s tangible assets and in the year under review the resort secured planning permission for a new function room for the K Club.
