LOSSES TOPPED €5 MILLION at Donald Trump’s golf course at Doonbeg by the end of 2015, however the company behind the facility is confident of turning a profit soon.
New accounts for Tigl Ireland Enterprises, the company set up by the US President-to-be to handle the running of Doonbeg golf course and hotel in Clare, show that the firm made a gross profit of €3.7 million in 2015.
When administrative expenses of €5.2 million were taken into account, the firm made an operating loss of €1.5 million. This was down slightly on the €2 million reported in the 12 months to the end of 2014.
When a €1 million depreciation charge and a small interest payment were taken into account, the company made a full-year loss of just under €2.58 million in 2015, almost identical to the €2.55 million reported in 2014.
Accumulated losses rose to €5.1 million, up from €2.5 million at the end of 2014.
€20 million redevelopment
The accounts, which were signed off in November, noted that Doonbeg was closed for some of 2015 as part of a huge €20 million redevelopment of the course’s facilities.
The director’s report said that the upgrade was completed during 2016, and it was expected that the company would be profitable from the middle of 2016 onwards.
“During the year ended December 31, 2015 and 2014, the company spent €5.5 million and €14.5 million respectively on capital improvements to enhance the golf course and property,” the directors report said.
“The golf course redevelopment was completed in May 2016. The developers are confident that as a result of the redevelopment of the golf course that annualised turnover will increase and the company expects to report operating profits in the second half of 2016 onward.”
The accounts also show that Doonbeg received a capital contribution of €15.3 million from its shareholders in 2014 and €7.6 million in 2015. The company’s shares are entirely owned by a firm called TW Venture II LLC, a company controlled by Trump.
The accounts also show that the number of people employed by Doonbeg rose slightly during the year, from 208 during 2014 to 211 in 2015. Total staff costs jumped from just over €4 million to €4.7 million.
Director’s remuneration was up marginally, rising from just above €134,000 to €140,000.
US President elect Donald Trump is listed as a director of the company, which he bought in 2014. Three of Trump’s children, Ivanka, Eric and Donald Jr, are also all listed as Doonbeg directors.
Trump promised in 2014 that he would invest heavily in the golf course. Since then he has referred to it as a ‘good investment’, although he has also described the facility as ‘small potatoes’.