Profits surge to €2.35m at INEC operator despite Vat hike hit
Kodaline on the stage at a sell-out concert at the INEC, Killarney. Picture: Valerie O'Sullivan
Pre-tax profits at the operator of the INEC in Killarney increased by 43% to €2.35m in 2023.
Accounts lodged by Gleneagle Holdings (Killarney) Ltd show that profits surged after revenues increased by 13% from €25.33m to €28.68m in 2023.
The directors state that the Gleneagle hotel "performed extremely well in 2023, driven by strong accommodation revenues, with record occupancy levels and average room rates being achieved”.
They state that "increases in occupancy and average room rates were mitigated by heightened costs of labour and other operational costs, in particular food and beverage costs”.
They add that "the 50% increase in the rate of Vat on accommodation and food for the last four months of the year also impacted on the performance of the business”.
On the risks facing the business, the directors point to increased labour costs due to rise in minimum wage rate, which they say, also triggers wage inflation for employees with rates of pay above this minimum rate and increased overheads as a result of market increases in operational and utility expenses.
The directors also cite the impact of the full year and peak season effect of the increased hospitality vat rate on profit margins and cost of living increases impacting the domestic market and the amounts being spent on leisure activities as risks to the business.
Upcoming events at the INEC include An Evening with Eric Cantona; Tommy Tiernan’s Tommedian in February, and Des Bishop’s ‘Lately’ show in March.
The pre-tax profit also takes account of non-cash depreciation costs of €1.37m.
Numbers employed at the business in 2023 increased from 300 to 312 as staff costs rose from €10.28m to €11.48. At the end of December 2023, the business had shareholder funds of €7.7m.
The company’s cash funds increased marginally from €3.56m to €3.59m.
The firm operating profits increased marginally from €3.14m to €3.21m and interest payments of €853,649 reduced profits to a pre-tax profit of €2.35m.
The company recorded a post tax profit of €2.02m after incurring a corporation tax charge of €332,412.
On contingent liabilities faced by the business, a note states that the group operates with an insurance policy excess in relation to public liability actions brought against the business.
The note states that the directors have taken advice from the group solicitors and a provision of €600,000 has been made at the end of December 2023.
