A management firm owned by businessman Patrick McKillen Sr has recovered €7.46m in unpaid management fees that were the subject to legal proceedings.
That is according to new accounts for Mr McKillen's Hume Street Management Consultants Ltd which show that the company recorded a profit of €2.97m in 2023.
The company paid out dividends of €3.15m in 2023 which followed a dividend payout of €1.09m in 2022.
The new abridged accounts, under exceptional items, show that the €7.46m relate to management fees which were subject to legal proceedings.
The note states that there was a €25.08m provision made in the prior year concerning the contracts subject to legal proceedings and "a portion was recovered post year end, hence the reversal".
The accounts do not specify the other party involved in the legal proceedings.
Mr McKillen has been in dispute with the Qatari owners of the Maybourne luxury hotel group and the new Hume Street accounts state that the company "is engaged in several ongoing legal proceedings in France, the UK and the US, some of which are confidential".
Signed off on February 21, the note states that the financial statements include a provision for income associated with claims being pursued by the company in these proceedings.
The details show that there was a trade debtors balance net of provision for revenue contracts subject to legal proceedings amounted to €17.62m at the end of 2023 compared to €25.08m at the end of 2022.
In the row with the Qatari owners of the Maybourne group, McKillen claims he is owed billions of pounds under an agreement to share future profits struck with the Qataris at the time of the 2015 sale, which valued Claridge's, the Connaught and the Berkeley at £1.3 billion.
The terms of the contract reportedly confirm McKillen is in line for 36% of the upside valuation of the hotels minus capital expenditure.
In 2022, the Maybourne group confirmed that it had not renewed its management contract with Mr McKillen's Hume Street Management Consultants.
The business with the Maybourne Group was worth £3.75m per annum to Mr McKillen’s Hume Street Management Consultants Ltd.
The post tax profit of €2.97m in 2023 compared to a post tax loss of €1.65m for 2022 - a positive swing of €4.62m.
A note attached to the accounts states that Mr McKillen has agreed to provide continued financial support to ensure that the company can meet its liabilities as they fall due.
The note states that furthermore, Mr McKillen and related parties have confirmed that they will not seek payment for amounts owed to him until the company has adequate funding available to repay the amounts due.
Numbers employed by the firm increased by one to 10 as pay increased to €1.08m. Pay to directors dipped to €192,600 at that included €42,600 in pension payments.
Reporting by Gordon Deegan
