Operating profit at the company that runs the Denis O’Brien-owned four-star Ballynahinch Castle hotel in Co Galway last year decreased by 30 per cent to €307,122.
Accounts filed by Mr O’Brien’s Yelsea Ltd show the hotel firm’s operating profit decreased as revenue rose by 6 per cent from €8.45 million to €9.02 million.
Directors for Yelsea Ltd – which include Mr O’Brien’s wife, Catherine, said, in a note with the accounts, that they were satisfied with the company performance considering the very difficult trading conditions during the previous two years.
However, the firm recorded a pretax loss of €448,052 last year after interest payable and similar expenses of €755,174.
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The bulk of the interest payable at €461,124 was on a shareholder’s loan and this contributed to a total of €4.23 million interest payable on the loan at the end of 2024.
In their note, the directors said “the principal risk and uncertainties are the continuing inflationary pressures on costs, global instability and unfavourable exchange rate movements that could impact international travel, particularly from the US, and any potential slowdown or contraction in the Irish economy in the future”.
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The shareholder’s loan to the Denis O’Brien-controlled business at the end of last year totalled €15.37 million.
The directors said the company’s shareholder has confirmed that it will provide financial support to the company, by way of confirmation that they will not call the shareholder loan in the foreseeable future, and, at a minimum, for a period of 12 months from the date of approval of these financial statements.
The directors said they considered it appropriate to prepare the financial statements on a going-concern basis.
The operating profit also takes account of non-cash depreciation costs of €1.46 million.
The numbers employed at the castle hotel last year increased from 97 to 102 as staff costs increased from €3.36 million to €3.63 million.
The firm continued to invest in the hotel last year by adding €2 million to the value of its tangible assets in land and building and fixtures, fittings and equipment.
The accounts – signed off by Catherine O’Brien and Niall Geoghegan on October 13th – show the company’s cash funds decreased from €1.82 million to €1.64 million.
The company’s net cash generated from operating activities increased from €1.8 million to €2.1 million.
Mr O’Brien paid about €6.5 million for Ballynahinch in 2013 and has extensively refurbished the property.
The Ballynahinch company’s fixed assets had a book value of €18.37 million at the end of 2024.
