The pub and hotel group which owns Kehoe's and the Stag's Head in Dublin last year sustained a €37 million hit to revenues due to Covid-19 pandemic impact on the hospitality industry.
That is according to new accounts lodged by the Louis Fitzgerald pub and hotel group's holding company, Burtse Ltd which show that the business recorded a pre-tax loss of €306,598 in the 12 months to the end of June last.
Over the 12 months, revenues reduced by 70% from €53 million to €16 million.
The revenue drop is even more acute at 77.5% from pre-Covid year revenues of €71.39 million in fiscal 2019
Government restrictions resulted in the closure of the group’s pubs for much of the year under review and the group received Government Covid-19 grants of €5.72 million.
The directors note that the current situation is dynamic "and there are continuous uncertainties surrounding the duration of the pandemic, future disruptions to the hospitality industry and the industry’s speed of recovery"
They state however that the group "is in a strong financial position to withstand potential future challenges in this context".
The accounts were signed off in February of this year and the directors state that "whilst trading has not been suspended since July 2021, the directors remain cautious as rising case numbers could lead to further restrictions on trade".
The directors state that "management aims to increase the profitability of the company through increasing turnover and management of its operating costs".
Pay to directors Louis Fitzgerald and his wife Helen declined from €408,345 to €318,292 last year.
The two lead the family owned Louis Fitzgerald group where the Fitzgerald adult children now take a prominent role in the running of the business.
The group's businesses include well known Dublin City centre pubs, Stag’s Head, Kehoes, Bruxelles, The Gin Palace, Grand Central and Quays Temple Bar.
The group also operates An Poitin Stil, The Laurels, Palmerstown House, The Roost, Annie May’s, Carroll’s, The Arlington Hotel and The Louis Fitzgerald Hotel.
Numbers employed by the business decreased by 148 from 825 to 677 last year as staff costs, including directors’ pay - more than halved from €14.7 million to €5.8 million.
Burtse recorded the pre-tax loss after taking account of non-cash depreciation costs of €3.5 million.
Burtse enjoyed operating profits of €825,307 and paid out €1.13 million in interest payments to give the pre-tax loss of €306,598
The hospitality group recorded a post tax loss of €570,563 after paying out corporation tax of €263,965.
The business had shareholder funds of €42.55 million including accumulated profits of €12.8 million.
Burtse’s cash funds reduced from €5.6 million to €1.34 million.
Burtse's total bank loans at the end of June last year had reduced from€43.5 million to €37.28 million.