EJ King Bar group makes loss of €444,171

The Co Galway-based EJ King Bar group, which owns a number of hotels and bars in Dublin and Galway, made a pre-tax loss of €444,171 on a turnover of €9.5l million in the year to the end of February 2004, according to accounts just filed.

In the June 2004 issue of Iris Oifigiúil the group was listed as having made a €2.98 million settlement with the Revenue arising out of a bogus non-resident account investigation.

The EJ King Bar group is owned by Mr Terry Sweeney (42), of Salthill, Galway. Its businesses include the Schoolhouse Hotel in Dublin, the Westwood House hotel in Dangan, Galway, and Busker Brownes, Galway.

Mr Sweeney was not available for comment yesterday.

In 2000 EJ King Bar Ltd made a tax settlement of €254,317 arising from the under-declaration of corporation tax and VAT. The settlement was also included in the tax defaulters list in Iris Oifigiúil.

... The group had a negative balance going forward at year's end of €2.5 million, compared to the previous year's positive figure of €355,899. The fixed assets of the group are given a value of €16.5 million.

The group cash flow statement for the year shows a corporation tax figure of €2.78 million. Net debt at year's end was €18 million.

The average number of persons employed during the year by the group was 138, at a total cost of €2.7 million.

Directors' remuneration and pension cost was €191,846. The directors during the year were Mr Sweeney and Ms Ann Fleming.

The group has bank loans of €22 million. Notes to the accounts show that securities over bank borrowings for EJ King Bar Ltd include letters of guarantee from Mr Sweeney, a charge over the EJ King Bar, Busker Brownes and the Country Basket, Galway, Kirby's restaurant, Kirwan's Lane, Galway, and two sites at Clifden, Co Galway.

The company's registered office is in Clifden, Co Galway, where it runs the EJ King bar.

Bank borrowings from IIB Bank to the The School House Hotel Ltd, are secured with a 25 year lease of the hotel by the borrowers to Mr Sweeney, who is described as the operator.

The bank also has first ranking assignment over a put and call option agreement between the company and Mr Sweeney, and assurance on the life of Mr Sweeney amounting to €1.27 million.