Pre-tax profits at former Sean Quinn hotel, the Slieve Russell in Co Cavan, more than doubled to €5.02m last year.
New accounts show that Slieve Russell Hotel Property Ltd recorded the 108% surge in profits as revenues increased almost three fold from €6m to €16.47m in the 12 months to the end of June last.
The directors state that trading results since the end of last June "have been excellent and have outperformed the original budget prepared for the hotel with the business back on track to return to pre-Covid-19 trading levels".
The directors state that the company's 2023 budget indicates that a positive Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) will be achievable.
In the 12 months to the end of last June, the hotel business benefited from "other operating income" of €3.28m that included Government Covid-19 wage subsidy scheme payments and the Covid Restrictions Support Scheme (CRSS).
Numbers employed by the firm last year increased from 208 to 240 and staff costs more than doubled from €3.75m to €7.38m.
The directors state that the board has continued its investment in the Slieve Russell property over the course of 2022 and into 2023 in order to ensure that the property is maintained to the highest possible standard.
Much of the year under review was impacted by Covid-19 restrictions with a new variant in late December 2021 having a further negative impact on trading.
"Many events planned for December 2021 and January 2022 were cancelled or postponed," the directors stated.
They said that after many of the Covid-19 restrictions were removed in January 2022, the hotel has traded well.
The firm recorded an operating profit of €5.5m and interest costs of €489,000 reduced the hotel’s profit to a pre-tax profit of €5.02m.
The company recorded a post tax profit of €4.38m after paying corporation tax of €643,000.
The profit last year takes account of non-cash depreciation costs of €856,000.
At the end of June 2022, the amount owed by the hotel firm to IBRC (in special liquidation) had reduced to €66.07m with the repayment of €2.5m and interest charged of €489,000 during the year.
The directors state that they acknowledge that the liabilities owed to IBRC (in special liquidation) are significant and are in ongoing dialogue with the bank in connection with the facilities.
The profits last year resulted in the company's shareholder deficit reducing from €46.09m to €41.7m while the company' cash funds increased from €3.2m to €6.58m.
With the collapse of the Quinn empire, the Irish Bank Resolution Corporation (IBRC), formerly Anglo Irish Bank, assumed control of the Slieve Russell hotel when a share receiver was appointed to the hotel firm in April 2011.
Reporting by Gordon Deegan
