A NEWLY filed financial statement for Lahinch Seaworld showed that while it had significant liabilities, its €6 million redevelopment should lead to an improvement in fortunes.
The statement indicates that the upgrade “will result in increased revenue and improved profitability and cashflow over the coming years”.
While there was a profit in 2020, it barely put a dent in the liabilities faced.
The financial statement read, “The Company recorded a profit of €3,131 (2019: loss €20,720) during the financial period ended 31 December 2020 and at that date, had net current liabilities and net liabilities of €1,349,140 (2019: €643,131) and €417,485 (2019: €420,616) respectively.”
The statement said that Clare County Council had provided vital support to help with the redevelopment.
“The directors note that in February 2019, the Rural Regeneration and Development Fund approved funding for the ‘Lahinch Seaworld and Town Upgrade Project’.
“The project is for a substantial upgrade of the seaworld building and associated public realm works in the town.
“As the funding cannot be drawn down until the project is completed, Clare County Council are providing the company with interest-free funding to complete the project.”
Covid had a relatively limited impact on Lahinch Seaworld, it found.
“In December 2019, the building from which the company operates closed to facilitate the redevelopment of the building and the company’s operational staff were made redundant.
“The directors also note that in early 2020, the existence of the coronavirus, Covid-19, was confirmed.
“As the building from which the company operates was already closed, the impact on the company was limited primarily to delays in completing the redevelopment due to restrictions introduced by the Irish government to reduce the spread of the virus. The centre reopened in April 2022.”
The statement said that while it had been prepared on a going concern basis, it was relying on support continuing, from the Council and its financial backers.
“The validity of the going concern assumption is dependent on the continued support of Clare County Council and the company’s bankers.
“The directors have reviewed budgets and cash flow projections prepared by management which include the continued support of the stakeholders noted above.
“Based on these projections, the directors consider that the company will generate sufficient cash flow to discharge its obligations for a minimum period of 12 months from the date of approval of the financial statements.
“Based on this continued stakeholder support, the directors, having considered the current and projected cash flows and the approved funding, believe that it is appropriate for the financial statements to be prepared on a going concern basis.”
Owen Ryan has been a journalist with the Clare Champion since 2007, having previously worked with a number of other publications in Limerick, Cork and Galway. His first book will be published in December 2024.