Revenues at the firm which operates the five star Powerscourt hotel resort near Enniskerry in Co Wicklow last surged by 63% to €23.16m as the business recovered from the impact of the Covid-19 pandemic.
That is according to new accounts at hotel firm, Sugarloaf Ventures Ltd which show that despite the €8.9m jump in revenues to €23.16m, pre-tax profits at the firm halved from €2m to €1m last year.
However, the €2.01m pre-tax profit for 2021 was inflated by Employer Wage Subsidy Scheme (EWSS) payments of €3.76m in 2021.
The EWSS payments for 2021 compare to €1.15m EWSS payments in 2022.
The directors state that from early 2022, government Covid-19 restrictions were progressively removed and the trade has continued to operate normally
The directors' report state that "while the market performed above expectation, any slowdown in business levels could have a material impact on the company performance".
A note attached to the accounts states that the hotel "is well positioned for 2023".
The resort is part of the MHL Collection, a consortium led by US billionaire John Malone, and was purchased for over €50m in 2019.
The MHL Collection was formed by its three partners, Mr Malone, Paul Higgins and John Lally and today operates 10 hotels across the country including seven in Dublin.
MHL is the second largest hotel group in Dublin city with over 1,350 five and four star bedrooms and its hotels include the five star Westin and the five star Intercontinental hotels.
A breakdown of the Powerscourt hotel's revenues show that accommodation income increased from €7.2m to €12.26m while 'food and bar’ income increased from €4.7m to €7.79m and ‘other’ income rose from €2.28m to €3.1m
The hotel firm’s profits last year took account of non-cash depreciation costs of €1.12m and operating lease rentals of €3.048m.
Numbers employed at the hotel resort last year increased from 217 to 235 and staff costs last year increased from €6.18m to €8.48m.
The company's gross profit almost doubled from €6.9m to €12.19m after cost of sales rose from €7.23m to €10.96m.
The firm recorded post tax profits of €893,216 after incurring a corporation tax charge of €167,000.
At the end of December last, the firm had a shareholders’ deficit of €1.33m. The firm’s cash funds increased from €10.29m to €11.18m.
A note attached to the accounts states that "detailed cash flows have been prepared which demonstrate that the company can meet its commitments as and when due and accordingly, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future".
Reporting by Gordon Deegan
