Prof­its decline 37pc at Sk­eff­in­g­ton Arms

Irish Independent - - Business - Gor­don Dee­gan

THE di­rec­tors of Gal­way ho­tel, the Sk­eff­in­g­ton Arms, have warned of the chal­lenge posed by tech­nol­ogy to the busi­ness as pre-tax prof­its last year de­creased by 37.5pc to

€321,881.

New ac­counts show that the bou­tique ho­tel recorded the de­crease in profit de­spite the gross profit go­ing up from €4.47m to

€4.6m in the 12 months to the end of Septem­ber last.

Ac­cord­ing to the di­rec­tors, the ho­tel faces a num­ber of chal­lenges in­clud­ing the chang­ing world of tech­nol­ogy and so­cial me­dia, in­creased costs of oper­a­tions and the high level and in­ten­sity of com­pe­ti­tion.

The main fac­tor be­hind the drop in prof­its is the €265,470 non-cash de­pre­ci­a­tion costs of as­sets last year, com­pared to

€94,932 un­der that head­ing in 2016.

How­ever, even with those risks out­lined, the ho­tel has been able to cash in each year on the Gal­way Race week and the mul­ti­tude of fes­ti­vals that op­er­ate in Gal­way each year.

The di­rec­tors state that the com­pany plans to of­fer more mid-week and week­end pack­ages in the hope of at­tract­ing more peo­ple to the ho­tel, thus im­prov­ing over­all oc­cu­pancy lev­els.

The re­sults for the year and the fi­nan­cial po­si­tion of the com­pany were con­sid­ered sat­is­fac­tory by the di­rec­tors who as­sert that the com­pany is well-po­si­tioned within the ho­tel and leisure in­dus­try, and that they ex­pect to grow their mar­ket share in the fu­ture.

Num­bers em­ployed at the com­pany last year de­clined from 98 to 93 while staff costs in­creased from €2.16m to

€2.18m.

At the end of Septem­ber last, the ho­tel firm had ac­cu­mu­lated prof­its of €5.89m. The com­pany’s cash pile in­creased from

€445,667 to €535,547.

The Sk­eff­in­g­ton Arms Ho­tel plans to of­fer more mid-week and week­end pack­ages to at­tract more peo­ple to the ho­tel

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