The company that runs Denis O’Brien’s Quinta do Lago golf resort in the Algarve made a profit of £1.37m (€1.56m) last year after achieving “a strong recovery with the easing of Covid-19 restrictions.
The accounts of Algarve Golf Courses Ltd, registered in the UK, show that a subsidiary which manages the complex in Portugal – Sociedade do Golfe da Quinta do Lago – made a profit in the year ending at the end of December 2021 .
The profit of £1.37m follows a loss of £3.7m in 2020 – a positive development of £5.07m.
The company closed the financial year with capital and reserves of £13.85 million.
Administrators of Algarve Golf Courses Ltd say performance at Sociedade do Golfe da Quinta do Lago “saw a strong recovery following the easing of Covid-19 restrictions which continued through 2022”.
The administrators declare that they are satisfied with the performance of the Sociedade do Golfe da Quinta do Lago in 2021.
Mr. O’Brien acquired the Quinta do Lago resort in 1998 and expanded it significantly in the years that followed. It includes three golf courses, hotels, a sports campus and residential units.
Algarve Golf Courses itself had net assets of £7.24 million at the end of 2021 – unchanged from the end of 2020. Administrators noted that it had not made any profit in 2020 because he was not trading. It paid no dividend for the year.
Separately, the accounts of another entity owned by Denis O’Brien, Catalunya Golf Ltd, show that it recorded a pre-tax loss of £2.19million during the year.
The business is a holding company for companies engaged in the ownership and management of golf courses and the directors state that the level of activity and the financial situation at the end of the year were satisfactory.
The company’s loss arose from the currency conversion of the company’s underlying investment, not from the trading.
The £2.19 million loss followed a pre-tax profit of £1.7 million in 2020 and the 2020 profit was driven by a foreign exchange gain.
The directors say the company’s subsidiary “has experienced a strong recovery following the easing of Covid-19 restrictions which continued into 2022”.
The subsidiary, PGA Golf de Caldas SA, is engaged in property development and recorded profits of £2.18million last year. At the end of last year, its equity stood at £14.5million.