By Gordon Deegan
Tuesday, November 29, 2011
PRE-TAX profits surged at one of Cork city’s best known hotels, the five-star Hayfield Manor Hotel to €1.67 million last year, new figures show.
Accounts just filed with the Companies Office show that pre-tax profits at Hayfield Leisure Ltd increased to €1.67m from €45,836 in 2009.
The 87-bedroom hotel recorded the increase in profit after the company’s gross profit increased by 26% from €4.29m to €5.44m in the 12 months to the end of December last. No turnover figure is provided in the abridged accounts.
According to the directors’ report: "The results of the business and the financial position were considered satisfactory and the directors expect continued growth for the foreseeable future."
The report continues: "The directors intend to increase profitability by increasing sales by continuing to market the company as a provider of high-quality goods and keeping tight control over all operating expenditure."
A significant factor in the company recording the increase in pre-tax profits was a €272,556 loss on disposal of investment in 2009 that did not re-occur last year.
Also, payments totalling €700,000 concerning a management contract with co-owners and directors, Joseph and Margaret Scally that were made in 2009 and 2008 did not occur last year.
The two operate the Killarney Royal Hotel and the Scallys opened Hayfield Manor in 1996 after purchasing the Hayfield Manor estate from the Musgrave family.
The figures show that the company’s operating profit increased fourfold last year from €368,824 to €1.735m.
Interest charges of €69,043 reduced the company’s profits to a pre-tax profit of €1.678m. The company had €3.361m in accumulated profits.
Its shareholder funds of €4.6m included €2.26m in cash. The profit takes account of €85,620 in non-cash depreciation.
The hotel employs around 80 staff and staff costs last year increased by 18% from €2m to €2.36m.
The directors’ report states that the directors "continue to ensure that the company’s reputation of providing a quality service continues to be a unique source of competitive advantage against its rivals".
The hotel declined to comment on the results yesterday.
This appeared in the printed version of the Irish Examiner Tuesday, November 29, 2011