Covid closures see Center Parcs report €18m loss
Last year, the operators of the 280 million euro Center Parcs holiday resort recorded pre-tax losses totaling 18.2 million euros due to forced Covid-19 closures.
That’s according to new accounts from Center Parcs Ireland Ltd which show the resort town of Co Longford saw a turnover of €22.8m last year due to forced Covid-19 closures.
Accounts show that the Center Parcs holiday village was open for two periods in the year – from July 13 to October 6, 2020 and from December 18 to December 27, 2020.
Daily receipts amount to €114,893 per day over the 94 days of operation.
Total revenue decreased by 68% from €33.6 million to €10.8 million in the 12 month period ending April 22, 2021.
Directors point out that the business, when it opened in the year under review, was subject to self-imposed occupancy limits and reduced supply for customers.
The directors state that the company’s financial results for the current year and the previous year “have been significantly impacted by the Covid-19 pandemic” and that “the key performance indicators are not considered appropriate until Longford Village has not been trading continuously for 12 months”.
Center Parcs has remained open since its reopening on June 4 and a note attached to the accounts – signed at the end of September – indicates that “demand for company stays remains strong and forward bookings in progress for the rest of the l financial year April 2022 are ahead of those of the equivalent period of the year ending in April 2020 at the corresponding time”.
Last year’s operating loss includes non-cash amortization charges of €7.6 million.
The business recorded an operating loss of €12.6 million and interest payments of €5.6 million resulted in a pre-tax loss of €18.2 million.
The business posted a post-tax loss of €16 million after recognition of a corporate tax credit of €2.2 million.
The pre-tax loss of 18.2 million euros last year followed a pre-tax loss of 15.3 million euros the previous year which was associated with the start-up costs of the station which did not open its doors only in July 2019.
The accounts reveal that the complex’s Canadian owners, Brookfield, provided additional funding of £13.7m during the year to support the Co Longford venture and Brookfield has an additional £40m to support the group companies.
The company put a book value of 280 million euros on its fixed assets at the end of last April before taking into account non-cash depreciation costs.
The company had equity of €100.6 million at the end of April 2021, which included an issue premium of €142.2 million offset by cumulative losses of €41.6 million.
Last year, the number of employees at Center Parcs increased by 123, from 885 to 1,008, and last year the company received 8.6 million euros in Covid-19 wage support payments. 19.
Personnel costs were reduced last year from €16.7 million to €7.6 million.
Managers say that during lockdowns up to 90% of station workers have been made redundant thanks to the government’s Covid-19 grant schemes.
A Center Parcs spokesperson said today: ‘Longford Forest has traded extremely well since reopening in June and forward bookings appear very strong.’