Pre-tax profits at Goffs this year declined by 49% to €2.28m despite the Goffs' bloodstock auctioneering business achieving record sales of €215m.
New accounts for Robert J Goff & Co plc show that pre-tax profits decreased as net revenues rose by 14% from €18.88m to €21.59m in the 12 months to the end of March this year.
In her report, Goffs chairwoman, Eimear Mulhern has stated that the reduction in pre-tax profits was "largely driven by significant inflationary cost increases".
"The group has also provided for a significant doubtful debt," Ms Mulhern added.
In her report, Ms Mulhern has told shareholders that the year "has been a very positive one for your company. Sales performed very well and superbly in certain sectors."
The directors are proposing a 8.5 cent dividend per share which followed a 17 cent dividend per share for fiscal 2022 which totalled €1.13m.
In his report, Goffs group CEO Henry Beeby said that the year "saw Goffs sales reach a new high with a recording breaking turnover at all sales of €215m - a rise of 18% over the €181m of 12 months previously which was a record in itself".
Mr Beeby said that the Goffs Orby Sale "is the most important 48 hours of our year".
During the two day sale, Goffs oversaw the sale of the year's highest priced yearling filly for €2.6m.
In his report, Mr Beeby said that the 2022 Orby "was only a joy as a deliberately larger catalogue returned a stunning two days that enjoyed a 24pc rise".
Later, in his year summary, Mr Beeby said that Goffs was unable to translate the ring turnover from 25 sales events at 10 locations from around the world "into an increased profit for our shareholders mainly due to an isolated payment problem".
He sad that it is noteworthy that "this issue had no impact on our clients as we insulate our vendors from such problems" and that thoroughbred auction houses are always open to such risks "and is is part of our day job to manage that risk".
Ms Mulhern said that during the year, the privately owned hotel, The Club at Goffs Hotel, opened on Goffs lands.
Ms Mulhern stated that the hotel "has been trading very well and together with its superb restaurant, provides an excellent accommodation option for Goffs clients and the wider public".
Under the heading of "Goffs Lands", Ms Mulhern stated that the Circle K "is also performing well and meeting all its obligations. We are currently in discussions in relation to their requirements for some additional land".
"We are now seeing a return from our surplus land and our property company has been performing well," she added.
The group recorded operating profits of €2.7m and interest payments of €428,000 reduced profits to a pre-tax profit of €2.28m. The group recorded a post tax profit of €1.8m after paying corporation tax €482,000.
The profit last year takes account of non-cash depreciation, amortisation and impairment costs of €847,000.
Numbers employed by Goffs last year remained at 81 - made up of 58 permanent staff and 23 temporary staff.
Staff costs increased from €5.08m to €5.25m. Pay to directors increased marginally from €1.3m to €1.32m while pay to key management personnel this year increased from €2.9m to €3.12m.
At the end of March, Goffs had shareholder funds totalling €37.2m that included accumulated profits of €21.99m.
The firm's cash funds decreased from €12.11m to €7.44m while the amount owed by debtors increased from €23.59m to €30.82m.
Reporting by Gordon Deegan
