Center Parcs Ireland Ltd, the €280m holiday resort in Co Longford, has reported a significant increase in pre-tax profits for the year, more than doubling to €19.8m. This impressive growth can be attributed to the surge in revenues, which rose by 51% or €29.6m from €57.8m to €87.4m in the 12 months leading up to April 20th this year. This translates to average weekly revenues of €1.68m and average daily revenues of €239,453.
Occupancy rates at the resort also saw a substantial increase, reaching 97.9% compared to 73.2% in the previous fiscal year. The average daily lodge rent achieved was €281.28, a notable increase from €254.74 in the prior year. The company’s Earnings Before Interest Depreciation Tax and Amortisation (EBIDTA) also experienced a significant surge, rising by 62% from €21.5m to €34.8m.
After paying corporation tax of €2m, Center Parcs Ireland Ltd recorded a post-tax profit of €17.8m. The company also paid out dividends of €13.8m in the same year. It is worth noting that the company’s performance was not impacted by COVID-19 restrictions during this period, as the resort first opened to the public in July 2019.
In May of this year, Brookfield, the Canadian owners of Center Parcs resorts in Ireland and the UK, announced that they were putting the resorts up for sale, seeking between £4bn and £5bn. The directors of Center Parcs Ireland Ltd stated in their report that they have ensured the potential sale would have no impact on the company’s going concern position.
Center Parcs currently has a planning application before An Bord Pleanala for a major expansion within its existing 160-hectare site. This expansion includes the addition of 198 new lodges. While planning permission was granted by Longford County Council in September of last year, the application is currently under review by the appeals board due to third-party appeals.
The number of employees at the Longford Village resort increased by 154, from 1,079 to 1,233, resulting in a 32% rise in staff costs from €18.8m to €24.9m. The operating profit for the year amounted to €27m, accounting for non-cash depreciation costs of €7.8m. After interest payments of €7.2m, the company recorded a pre-tax profit of €19.8m.
At the end of April 2023, Center Parcs Ireland Ltd’s fixed assets were valued at €258m, with shareholder funds amounting to €112m. The company’s cash funds also saw an increase from €35.6m to €50.9m over the course of the year. In a post balance sheet event, it was revealed that the company refinanced its existing €165.3m loan, entering into a new facility of €265m, of which €165.3m was used to settle the existing loan facility on July 26th, 2023.
It should be noted that Center Parcs also operates five villages in the UK, in addition to its Irish resort in Co Longford.