K Club posted further losses of nearly €5m
The K Club, currently on the market for €80m, recorded pre-tax losses of €4.8m in 2016, new accounts show.
That €4.8m loss came on top of pre-tax losses of €3.9m posted for 2015.
The Kildare golf resort, which hosted the Ryder Cup in 2006, recorded the increased losses in spite of revenues climbing 11% to €16.6m.
The accounts for the K Club, which includes a hotel, country club, and two golf courses, cover the first full financial year incorporating a 70-bed extension.
In the accounts, the directors say that the continued investments in the resort, as well as improvements in the general economy, helped to boost revenues and earnings for its latest fiscal year, in 2017.
The loss in 2016 takes account of interest payments of €2m and non-cash depreciation costs of €3m.
The resort’s administrative expenses in 2016 increased from €3.7m to €5.1m while the cost of sales went up from €9.6m to €11.28m.
The expansion of the resort resulted in staff numbers increasing from 188 to 206, while staff costs increased from €5.6m to €6.4m.
The group’s shareholder deficit at the end of 2016 stood at €9.8m.
In 2012, Michael Smurfit purchased developer Gerry Gannon’s 49% stake in the K Club for a reported €40m to give him full control of the business.
In April 2012, the company successfully concluded discussions with Nama in relation to the debt facilities included in the company’s balance sheet.
