Accounts for Center Parcs Longford Forest have revealed that the Co. Longford holiday resort experienced a net loss of €13.8 million during the year that ended on April 23, 2020, despite generating revenues of €33.6 million.
As reported by The Irish Times, the resort did not begin trading until July 29, 2019, and it shut down due to the COVID-19 pandemic on March 13, 2020, so the above statistics only cover 33 weeks of normal trading during the twelve month period.
Cancellation And Rolling Operating Costs
Following the onset of the pandemic, the resort had to pay out €7.3 million in customer refunds for cancellations, and its rolling operating costs while closed reportedly appear to run at €1 million per month.
Furloughed Employees And Tax Payment Deferrals
Approximately 92% of the resort's employees are currently furloughed and on the state's wage subsidy scheme, and its directors said that Revenue permitted the resort to defer certain large tax payments that were due.
Funding Lifeline
The resort's owner, infrastructure fund Brookfield, stepped in with a funding lifeline of close to €14 million.
EBITDA And Employee Count
Stripping out pre-opening costs and judging the resort's performance solely on the period during which it traded normally, Center Parcs Longford Forest generated earnings before interest, tax, depreciation and amortisation (EBITDA) of €7.9 million.
Additionally, Center Parcs Longford Forest employed an average of 885 staff when it was open, and its EBITDA for that period indicates that it is a viable and potentially profitable business.
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
