Fota Island resort swung into 2022 profit
In 2013, the Kang family purchased the five-star Fota Island resort for a reported €20m. Pic Michael Mac Sweeney/Provision
The luxury Fota Island resort in Cork last year returned to profit to record pre-tax profits of €1.76m as the business recovered from the Covid-19 impact.
Fota Island resort operator, Xiu Lan Hotels Ltd returned to profit for the 18 months to the end of March last as revenues increased by 31pc from €13.04m to €17.1m.
The pre-tax profit of €1.76m compares to a pre-tax loss of €467,272 for the prior 12-month period.
Directors for the Hong Kong owned resort state that the financial period "saw an improvement in trading conditions, as restrictions previously in place as a result of the Covid-19 pandemic began to ease”.
They state that “this increased volume contributed to the company recording a gross profit of €14.77m”.
The resort recorded an operating profit of €2.08m before interest payments of €318,263 are taken into account.
The resort firm recorded post-tax profit of €944,790 after paying corporation tax of €822,056.
On the firm’s future developments, the directors state that “the company plans to pursue new business so as to strengthen the company’s trading position”.
The firm benefited from a non-cash gain of €6.04m in the re-evaluation of its property during the year.
The revaluation boosted the company’s balance sheet with shareholder funds increasing from €6.45m to €13.47m.
The firm’s accumulated profits rose from €4.16m to €5.14m. The firm’s cash funds during the 18 month period rose from €2.05m to €3.6m.
The profit last year takes account of non-cash depreciation costs of €1.49m and Government subsidies of €170,367.
The profit also takes account of Covid Restriction Support Scheme (CRSS) grant of €162,197.
Pay to directors declined sharply from €401,217 to €212,838.
Staff costs, including directors’ pay, reduced from €5.12m to €5.05m.
A breakdown of the resort’s revenues show that it recorded room revenues of €4.2m and food and beverage revenues of €5.23m.
The resort’s spa revenues totalled €1.22m while its 'Lodges' revenues totalled €2.21m.
The resort’s golf revenues increased by €1m to €2.99m.
The resort generated zero revenues for its Christmas Experience and Halloween Experience during the period compared to €954,972 and €92,906 under those headings in the year to the end of September 2020.
In 2013, the Kang family purchased the five star Fota Island resort for a reported €20 million and they quickly followed that purchase by snapping up the Kingsley Hotel in Cork for €6 million.
