*Blarney Woolen Mills.
Profits at the Blarney Woollen Mills Group – which operates the Bunratty Castle Hotel – were hit last year after the group had to repay €1.13m to the Revenue Commissioners concerning an over-claim by the group in the Government’s COVID-19 Employment Wage Subsidy Scheme (EWSS).
That is according to new accounts for the Blarney headquartered retail and hotel group which show that a strong performance in retail and hospitality contributed to revenues rising at the group by 11 percent to €55.66m in the twelve months to the end of January 31st this year.
The group operates the Blarney Woollen Mills and Meadows & Byrne chain of retail outlets and profits were hit by the €1.13m repaid to Revenue concerning prior years COVID-19 wage subsidy payments received.
Prior year accounts for Blarney Woollen Mills Group Ltd and subsidiaries show that the group received a cumulative €7.1m in Covid-19 EWSS payments from the State across 2022 and 2021 financial years.
A note attached to the new accounts concerning the repaid €1.13m states that “during the current year, the group were notified that there was an over-claim of the EWSS in previous years which led to a repayment of €1,134,796”.
Separate accounts filed by subsidiary, Meadows & Byrne Ltd show that €624,080 of the €1.3m over claim concerned that part of the business.
In their report, the directors for Blarney Woollen Mills Group state that demand for the company’s products remains strong however the cost of doing business has continued to increase.
They state this has resulted in a marginal increase in profit after tax to €3.76m in the year ended January 31st 2024.
The accounts also show that the group received an insurance payout of €226,320 concerning flooding causing extensive damage to its retail store in Clarinbridge, Co Galway in November 2023.
However, the accounts show that there were associated costs of €135,181 from dealing with the extensive damage with the group recording a net gain of €91,139 on the insurance claim.
A note attached to the accounts states “that the gain is the excess of the insurance proceeds received over the net book value of the relevant assets at that date and the direct costs incurred plus amounts received to cover business interruption”.
The principal activities of the group include the retailing of clothes, crystal, china, homewares and other household goods through The Blarney Woollen Mills and Meadows & Byrne shops and the operation of hotels & restaurants situated in Blarney, Cork, Dove Hill, Co. Tipperary and Bunratty, Co. Clare.
The group’s operating profits increased by five percent to €5.04m but higher interest costs of €693,419 resulted in pre-tax profits remaining flat at €4.35m.
The company recorded the post tax profits of €3.76m after recording a corporation tax charge of €590,579. Numbers employed by the group increased from 500 to 508 and staff costs rose from €13.5m to €14.49m. Directors’ emoluments rose from €873,798 to €936,718 made up of €660,000 in remuneration and €276,718 in pension contributions.
Pay to key management personnel made up of directors and members of the executive team increased to €1.54m.
Shareholder funds at the end of January totalled €32.7m that included €8.76m in accumulated profits.
The group’s cash funds reduced from €13.67m to €6.6m.