Company Report: Beannchor no 1
The group of hotels, cafes and pubs owned by the Wolsey family offer a consolidated report on the results for the group of businesses within Beannchor No.1. It includes other Beannchor subsidiaries, the Merchant Hotel, Southcape Properties, An Puca Ltd, Cathedral Leisure and Seanachai Ltd, as well as other investment properties
The Merchant Hotel is a major part of the group and has now been joined by the new Bullitt hotel in central Belfast.
The group has prepared consolidated results since it was re-organised in 2013. Comparative figures showing the progress of the businesses are now available over five trading years.
Total turnover has increased steadily by 65% from 2013 to 2017.
Operating profits have fluctuated but have been positive for the three more recent years. In 2014 a deduction for impairments of £4.3m meant an apparent trading loss. More recently, operating profits in 2017 have improved to be equivalent to nearly 24% of turnover.
The year by year comparison of pre-tax profits is influenced by an unusual adjustment to net interest received or earned (on borrowed funds) which resulted in a gain of £8.4m in 2016.
The change was a consequence of a restructuring of the schedule and charges for borrowed funds of over £31m.
Excluding that adjustment, pre-tax profits in 2016 would have been under £0.7m and the 2017 results would have shown a useful improvement.
The cumulative effect of the increase in the value of assets held by the group and their financing through agreed borrowing left the group with a continuing negative value of shareholders' funds until June 2015.
This has now been reversed and the value of shareholders' funds, buoyed by retained post-tax profits, was £6.9m in June 2017.
The number of people employed by the group continues to increase. In the most recent year, average employment rose to 579 people. Capital expenditure by the group on fixed assets was £13.2m in 2016 and £5.4m in 2017.
In each year the group also added to the value of its intangible assets of £4.4m and £0.16m in the two years, respectively.
2015 2016 2017 % change annually