American billionaire Donald Trump has taken a €2.5 million hit in his first year of ownership of the Doonbeg golf resort, accounts filed to the Companies Office has revealed.
TIGL Ireland Enterprises Limited, which operates Trump International Golf Links and Hotel in the West Clare village, recorded post-tax losses of €2,549,801 in its first year since the business tycoon acquired the resort.
In the company’s financial statements, its directors note that the substantial losses were due to the write-off of various start-up costs incurred as part of the acquisition of the business.
The golf resort was bought by Mr Trump last year for around €8.7m. It was subsequently valued at €23m by the businessman in financial disclosures filed this year with the Federal Election Commission in the US, as part of his campaign to secure the Republican nomination for the presidential election.
The golf course is currently being redesigned and will not be fully operational until 2016. This is likely to result in further losses being incurred this year, according to the directors’ report.
The latest accounts reveal that the company made a gross profit of €4,156,319 in the 12-month period to December 31, 2014, while administrative expenses and costs associated with the acquisition of the company amounted to €6,696,650.
Its tangible assets were valued at €13,976,139 and its cash balance stood at €508,727 at the end of last year. The firm was owed €893,558 by debtors, while €2,600,590 was payable to creditors within one year.
The company employed 208 people last year, who were paid a total of €4,027,982 including social welfare costs. Its directors received remuneration of €134,128, the accounts reveal.