In what has been another record year, the latest financial statements from Center Parcs Ireland Ltd reveal that revenues at the Longford resort increased by 10.6%, growing from €87.4 million to €96.7 million for the 12 months ending April 18th.
However, pre-tax profits dropped by 51%, falling from €19.8 million to €9.7 million, primarily due to a 170% rise in net finance expenses, which surged from €7.2 million to €19.5 million.
The Irish branch of Center Parcs achieved this growth in revenue and operating profit with a high occupancy rate of 98.7%. This figure is slightly higher than the 97% average occupancy across the six Center Parcs village resorts in the UK and Ireland.
During the year, the Irish operation distributed €152.7 million in dividends, made possible by a €101 million equity injection that bolstered the company’s balance sheet.
Next month, construction is set to begin on a €100 million expansion at the Longford site, which will add 198 lodges and luxury treehouses, increasing the resort’s capacity to approximately 3,500 guests.
The strong performance of the Irish business contributed to the Center Parcs UK and Ireland group’s best-ever EBITDA of £310.5 million in its 37-year history. The Irish business alone reported an adjusted EBITDA of €38.8 million, up from €34.8 million the previous year.
Center Parcs launched its first forest resort in the UK in 1987, with the Longford location opening in 2019. This year, the UK and Irish operations generated combined revenues of £704 million, with the Longford resort contributing 12% of the group’s total revenue.
The Sherwood Forest resort was the top performer within the group, generating £129.2 million in revenue from its 4,806 guest capacity, compared to Longford’s 2,736 guest capacity.
A statement in the group’s financial report highlights that the company has “traded exceptionally well, delivering another year of record profits.”
The Irish operation’s accounts also show a €115.4 million revaluation gain due to a change in accounting policy, resulting in property, plant, and equipment being valued at €365.8 million as of April 18th, 2024.
The directors’ report indicates that operating profits increased alongside the firm’s RevPAL (Revenue per available lodge night), which rose from €275.55 last year to €298.80 this year. The company posted a post-tax profit of €9.1 million after paying €600,000 in corporation tax.
Employment at the Longford Village resort grew by 68 this year, reaching 1,301 employees, with staff costs rising by 12% from €24.9 million to €27.9 million.
The operating profit of €27 million includes non-cash depreciation costs of €7.9 million. As of April 18th this year, the company had accumulated profits of €69.4 million, though cash reserves dropped from €50.9 million to €11.9 million over the same period.
Last year, Brookfield, the Canadian private equity group that owns Center Parcs resorts in Ireland and the UK, attempted to sell the business but was unsuccessful.
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