A firm that operates three of Charlie Chawke’s pubs, including Ireland’s most expensive pub, The Old Orchard in Rathfarnham, recorded a pre-tax loss of €5.95 million last year.
New consolidated accounts filed by Milltown Inns and subsidiaries for the Old Orchard and the Dropping Well pubs in Dublin as well as the award-winning Aunty Lena’s bar in Adare, Co Limerick show it recorded the loss as a result of a non-cash write-down of €6.2 million in the value of a freehold investment property.
The group’s operating profits increased by 14 per cent from €897,192 to €1.02 million before the write-down is taken into account.
Revenues dipped marginally to €11.13 million in the 12 months to the end of October last.
RM Block
The directors state that along operating bars and restaurants the group also own a number of investment properties.
The group also benefited from ‘other income’ totalling €348,319 which included rental income of €268,319.
The directors state that during the financial year, “the group encountered several challenges that impacted overall profitability”.
They state that “while the underlying business operations remained resilient, supported by steady revenue growth across key segments, profitability was significantly affected by increased interest expenses”.
The accounts show that interest on loans increased from €750,820 to €767,183.
The interest costs are mainly connected to the Old Orchard purchase - in 2005 Mr Chawke paid out a record €22 million for the pub.
The directors state that they remain focused on improving the profitability of the group through a combination of revenue growth and effective cost management.
The directors state that “the Group’s EBITDA (Earnings Before Interest Tax Depreciation and Amortisation) for the year amounted to €1.4 million representing a solid level of earnings relative to turnover, despite a small decrease compared to the prior year”.
The directors further state that the group successfully refinanced its banking arrangements by entering into a new financing facility in February 2025.
They state that “this new facility replaces the existing borrowing arrangement and provides extended credit terms”.
The firm recorded a post tax loss of €6.04 million after taking into account a corporation tax charge of €88.410.
The group also recorded an increase of €3.77 million in the valuation of tangible assets.
The group’s net debt reduced from €14.82 million to €14.36 million.
Numbers employed increased from 169 to 176 made up of 169 in ‘bar and restaurant’, five in administration and two in management.
Staff costs totalled €4.3 million. The profits take account of non-cash depreciation costs of €359,471.
Shareholder funds at the end of October totalled €1.85 million.
