Mount Juliet forecasts a return to profit as it hosts Irish Open

business
Mount Juliet Forecasts A Return To Profit As It Hosts Irish Open Mount Juliet Forecasts A Return To Profit As It Hosts Irish Open
Mount Juliet resort in Co Kilkenny, which is hosting the 2022 Irish Open, is due to return to operating profit after sustaining Covid-19 related pre-tax losses of €3.57 million in 2020
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Gordon Deegan

Mount Juliet resort in Co Kilkenny, which is hosting the 2022 Irish Open, is due to return to operating profit after sustaining Covid-19 related pre-tax losses of €3.57 million in 2020.

This year’s staging of the prestigious golf event at the Jack Nicklaus Signature Design Course at Mount Juliet will be the fifth time the resort will have hosted the event and follows the resort hosting the tournament last year.

Accounts filed by Mount Juliet Unlimited Company forecast a return to operating profit that will generate sufficient cash flows to allow it to honour its financial commitments as they fall due in the period to March 2023.

The new accounts show the business recorded the 2020 pre-tax loss of €3.57 million after revenues almost halved from €12.8 million to €6.72 million.

In terms of dealing with the Covid-19 pandemic and lockdowns, the directors state that during the periods in 2020 and 2021 when the company actually traded, the performance was satisfactory in terms of occupancy and rates received.

Losses

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The pre-tax loss of €3.57 million in 2020 follows pre-tax losses of €2.94 million in 2019.

Numbers employed by the business reduced from 182 to 168 in 2020 as staff costs declined from €6.16 million to €3.58 million.

The business also benefited from €808,144 in grant income in 2020.

The resort firm’s 2020 loss takes account of non-cash depreciation costs of €1.4m.

A note attached to the accounts states that during 2020 and 2021, the company has received forbearance from its external lender in respect of covenants for the period up to and including March 31st 2022 and certain payment obligations for the period up and including June 30th 2022.

The note states that it does foresee that it will require further payment obligation waivers at the date of signing these statements on March 8th 2022.

The note adds that as the company emerges from the pandemic, it expects to be able to agree revised debt covenants.

The accounts show that the amount owed in bank loans at the end of 2020 totalled €14.27 million while an additional €20.79 million owed in a shareholder loan.

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