New accounts filed by Mr O’Brien’s Yelsea Ltd show that the hotel firm’s operating profits dropped as revenues rose by 6pc from €8.45m to €9.02m.
Directors for Yelsea Ltd – which include Mr O’Brien’s wife, Catherine – say they are satisfied with the company performance considering the very difficult trading conditions in the previous two years.
However, the firm recorded a pre-tax loss of €448,052 last year after interest payable and similar expenses of €755,174
The bulk of the interest payable at €461,124 was on a shareholder’s loan and this contributed to a total of €4.23m interest payable on the shareholder’s loan at the end of 2024.
In their report, the directors say: “The principal risk and uncertainties are the continuing inflationary pressures on costs, global instability and unfavourable exchange rate movements that could impact international travel, particularly from the US, and any potential slowdown or contraction in the Irish economy in the future.”
Denis O’Brien. Photo: Getty
The shareholder’s loan to the business at the end of last year totalled €15.37m.
The directors say the company’s shareholder has confirmed they will provide financial support to the company, by way of confirmation they will not call the shareholder loan in the foreseeable future, and at a minimum, for a period of 12 months from the date of approval of these financial statements.
They say on this basis, the directors consider it appropriate to prepare the financial statements on a going-concern basis. The operating profit also takes account of non-cash depreciation costs of €1.46m.
The numbers employed at the hotel increased from 97 to 102 as staff costs rose from €3.36m to €3.63m.
The firm continued to invest in the hotel last year by adding €2m to the value of its tangible assets in land and building and fixtures, fittings and equipment. The accounts – signed off by Catherine O’Brien and Niall Geoghegan on October 13 – show the company’s cash funds decreased from €1.82m to €1.64m.
Its net cash generated from operating activities rose from €1.8m to €2.1m.
Mr O’Brien paid about €6.5m for Ballynahinch in 2013 and the Ballynahinch company’s fixed assets had a book value of €18.37m at the end of 2024.