Hayfield Manor parent sees profits jump 21% to over €5m

The Kerry-based hotel group that operates the five-star Hayfield Manor in Cork city last year enjoyed a post-Covid-19 lockdown bounce as pretax profit jumped 21 per cent to €5.03 million.

Accounts filed by Tripoint Investments Ltd show revenues more than doubled to €23.23 million from €9.9 million in the 16 months to the end of April 2022. The earlier figure was for a 12-month period.

The business is owned by the Scally family, and accounts also include the performance of the family’s four-star Killarney Royal hotel and the Great Southern Hotel in Killarney.

The directors said business performance “was strong due to demand for hotel breaks post-Covid lockdowns, but was also helped by Government supports for the hospitality sector during this period”.

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The revenue includes “other operating income” of €6.64 million, which comprises Government grants of that amount during the pandemic. This followed grants of €1.26 million under the same heading in the earlier 12-month period.

Numbers employed by the group increased from 223 to 295 as staff costs more than doubled from €4.29 million to €10.4 million.

The accounts disclose that a management charge of €3 million was paid to Halfpoint Investments in April 2022 when that Scally family vehicle became the ultimate parent company of the group. .

The pretax profit of €5.03 million takes account of non-cash depreciation costs of €1.72 million and interest costs of €273,623. The group recorded profits after tax of €3.88 million. .

Shareholder funds at year end stood at €44.4 million, including accumulated profits of €32.25 million. Cash on hand fell from €3.16 million to €160,669.

The amount paid to key management personnel – managers and members of the Scally family – amounted to €304,824.

On the economic risk facing the company, the directors, Joseph, Margaret and Mark Scally, state that the economic risk environment is uncertain post-Covid. They note the group is exposed to rising energy costs, as with others in the sector, and is looking at renewable solutions to manage it going forward.