The operation of state contracts to accommodate International Protection (IP) applicants helped pre-tax profits at the TIFCO group of hotels to surge by 28% to €21.73m last year.
New accounts show that pre-tax profits increased at TIFCO Ltd as revenues rose by 14% from €43.15m to €49.3m last year.
The group also enjoyed the jump in profits due to a €5m gain booked from the disposal of assets last year and the directors state that the group sold the Crowne Plaza Hotel in Dundalk in August of last year.
The accounts disclose that it secured €11.3m from the disposal of an asset during the year.
The group sold the hotel located just off the M1 motorway to a prominent direct provision operator, East Coast Catering Ireland Ltd, and the hotel comprises 129 guest bedrooms and suites and includes a rooftop restaurant on its 13th floor.
Tifco is one of Ireland's largest hotel operators with almost 3,000 bedrooms located throughout the country, including almost 2,000 rooms located in Dublin.
The 24 strong hotel group offers a combination of international hotel brands, with the Crowne Plaza Hotel at Dublin airport and Dublin Blanchardstown, the Hilton Hotel in Dublin Kilmainham, the Holiday Inn Express Dublin Airport and a collection of non-branded hotels.
The directors state that hotels in the group "secured a number of State contracts relating to direct provision for refugees which contributed to the results for the year."
They state that they consider the year end financial position of the company to be "satisfactory".
Separate figures published quarterly by the Dept of Children, Equality, Disability, Integration and Youth show that TIFCO last year received payments of €16.2m (incl VAT) for accommodating IP applicants and Ukrainian refugees last year.
Figures for the first two quarters show that TIFCO has received €12.67m (incl VAT) for the first six months of this year.
The €21.73m pre-tax profit for 2023 takes into account non-cash depreciation charge of €3.85m.
A note attached to the accounts states that the group recorded post tax profits of €19.84m "and strong operating cash was generated". The group incurred a corporation tax charge of €1.88m.
Numbers directly employed reduced from 316 to 254 though employment costs increased from €8.9m to €11.98m.
Shareholder funds totalled €164m that included accumulated profits of €68m. Cash funds reduced from €3.52m to €1.46m. A note states that the business was "well positioned with no debt and liquidity of €1.46m at the end of December last".
Reporting by Gordon Deegan
