The company that runs three of Charlie Chawke’s pubs, encompassing Ireland’s priciest pub, The Old Orchard in Rathfarnham, had its profits negatively impacted due to sharply increased interest charges amounting to €759,575. Milltown Inns, alongside its subsidiaries which operate The Old Orchard, the Dropping Well pubs based in Dublin, and Aunty Lena’s bar in Adare, Co Limerick, reported an 11% collective revenue boost reaching at €11.3 million for the year ending October last year, rising from €10.2 million.
Nevertheless, the company directors revealed that higher than projected interest expenses, which surged from the €292,023 noted in 2022 to €759,575, dented profitability. As a consequence, pretax profits reduced to €137,617. In respect to the €1 million pretax loss posted the previous year, it was mainly attributed to a non-cash write-down totalling €2 million.
Charlie Chawke commented on the performance, asserting that the past year was marred by escalating interest and energy costs. He admitted the majority of the interest payments were linked to the 2005 acquisition of the Old Orchard, for which he paid a record-breaking €22 million. Chawke emphasised the current 13.5% VAT imposed on the hospitality sector as particularly damaging, expressing hope that the Minister might reduce this “horrible VAT increase”.
Referring to the challenging business environment, Milltown Inns’ directors pointed out that the substantial interest payments notwithstanding, the underlying business operations maintained reliable income streams across major segments. The group’s EBITDA amounted to €1.42 million, which they regarded as an indication of solid earnings relative to the group’s turnover.
In a more advanced stage of talks with alternate banking bodies, they express certainty with regards to obtaining the required funds to refinance the group’s prevailing bank loans. As of the close of last October, the loan amount of the group from the banks was €14.5 million.
The group experienced growth in terms of personnel numbers, going up from 143 to 169, adding up a sum of €4.4 million to the cost incurred by the company on the employees. At the termination of the year, a total of €4.12 million was recorded in shareholder funds.