K-Club owners report a decline in pre-tax losses for 2021

Pre-tax losses at the group, which operates the K Club resort in Co Kildare, fell 41 per cent to €1.94 million in 2021.

New consolidated accounts filed by Bishopscourt Investments Ltd and subsidiaries show a sharp fall in losses after revenue rose by 6 million euros, or 71 per cent, from 8.48 million euros to 14.5 million euros.

The pre-tax loss of €1.94m for 2021 is followed by pre-tax losses of €3.3m for 2020.

The 2021 pre-tax losses of €1.94m include non-cash depreciation and amortization costs of €3.25m.

The company’s revenue rebounded in 2021 as Covid-19 restrictions eased, but revenue was still below pre-Covid-19 revenue of $17.99 million.

The directors state that they are satisfied with the development of the business in 2021. They said the group had posted a profit of 1.3 million euros before interest, depreciation and amortization costs.

The nursing home investor Michael Fetherston acquired the resort – consisting of a hotel, a country club and two golf courses – in February 2020 for around 65 million euros from the previous owner Michael Smurfit.

However, the company remained owned by Mr Fetherston for more than two and a half years affected by Covid-19.

Regarding the risks the company faces, the directors state that “as it continues to face intense competition, the company must continue to compete successfully in order to maintain and expand a strong market position”.

As Covid-19 restrictions eased with hotels opening in June 2021, the workforce increased from 105 to 155 and staff costs increased from €3.85m to €6m.

The balance sheet shows that the group’s net debt at the end of 2021 was 25.9 million euros.

With respect to the going concern status of the company, a note states that the ultimate controlling party has indicated that it will continue to provide funds required by the company for at least 12 months from the date of approval of these financial statements.

Directors state that at the time of signing the financial statements on January 10th of this year, the directors are reviewing rising inflation and the general economic climate.

The Group’s cash and cash equivalents increased from €1.55 million to €3.6 million in 2021.

The group’s property, plant and equipment has a book value of €60.09 million.