Company report: Beannchor No 1 Ltd
Beannchor No.1 is the consolidated report for the main hotel and pub businesses in the group owned by the Wolsey family.
The consolidated report includes other Beannchor subsidiaries, the Merchant Hotel, Southcape Properties and Seanachai Ltd. The Merchant Hotel is central to the business development of the group and will be joined by the new Bullitt hotel in central Belfast in the near future.
The group has registered consolidated results for the period since the re-organisation of the group became effective in 2013. Comparative figures are available for three trading years.
Total turnover in 2014-15 has increased steadily to reach more than £18.5m: up 9% on the previous year.
Operating profits at £3.2m have returned to the 'black' in 2014-15 after posting a loss of £1.7m a year earlier. However, the operating profits comparison is affected by the deduction of impairments of £4.3m in 2013-14. Without impairments, operating profits year-to-year are more comparable.
The larger impairment charges in 2013-14 also distort the comparison of pre-tax profits. Without this deduction, pre-tax profits have been improving. Taken separately, of the pre-tax profit of £2.4m, £1.3m can be attributed to the Merchant Hotel. The group holds extensive borrowed funds which, in June 2015, were valued at just under £27m in short-term lending and a further £3m with a longer maturity. The cumulative effect of the expanding assets held by the group and its financing through agreed borrowing left the group with a continuing negative value of shareholders' funds in June 2015. The deficit was just over £4m compared to £5.9m a year earlier.