Denis O'Brien-owned Ballynahinch Castle hotel sees profits surge

Gordon Deegan

The company that operates the Denis O’Brien owned four-star Ballynahinch Castle hotel in Co Galway last year returned to operating profit after revenues surged.

New s filed by Mr O’Brien’s Yelsea Ltd show that the hotel firm recorded an operating profit of €231,719 which followed an operating loss of €1.2 million in 2020 — a positive swing of €1.44 million.

The business enjoyed the operating profits of €231,719 as revenues increased by 44 per cent from €3.34 million to €4.82 million.

Directors for Yelsea Ltd — which include Mr O’Brien’s wife, Catherine — state that the hotel company “has traded well" since re-opening after a Covid-19 enforced shutdown until June 2nd of last year.

However, the firm recorded a pre-tax loss of €396,636 last year after interest payable and similar expenses of €628,355.

The bulk of the interest payable at €452,186 was on a shareholder’s loan and this contributed to a total of €2.84 million interest payable on the shareholder’s loan at the end of 2021.

The shareholder’s loan to the Denis O’Brien controlled business at the end of last year totalled €15.37 million.

The directors state that “2021 proved a challenging year with the worldwide Covid-19 pandemic having a significant impact on the business and the hospitality sector globally.”

The business was able to record the operating profit of €231,719 after taking into ‘other operating income’ of €1.23 million that included Covid-19 wage subsidy scheme payments of €1 million.

A note attached to the s states that “the company was entitled to these subsidies following the decline in revenues as a result of Covid-19”.

The operating profit also takes of non-cash depreciation and amortisation costs of €1.28 million.

The numbers employed at the castle hotel last year increased from 61 to 85 as staff costs increased from €1.998 million to €2.3 million.

Accumulated losses at the company at the end of 2021 totalled €5.3 million. The company’s cash funds increased from €597,429 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 valued its fixed assets at €17.6 million at the end of 2021.