THE group behind the K Club hotel recorded pre-tax losses of €7m in 2010 after €6.5m losses the previous year, accounts just filed have revealed.
The venue, which staged the 2006 Ryder Cup, saw revenues fall by 12pc to €9.8m in 2010.
Bishopscourt Investments Ltd and subsidiaries' directors report outlines that the group has "incurred further losses on ordinary shares after interest".
In its audit report, KPMG states that the group's fixed assets are valued at €90.4m and no provision has been made for impairment. The €90.4m valuation includes a €56m value on land and buildings and €10.2m on golf course construction.
KPMG states that in view of the failure to provide for the impairment, in their opinion, the financial statements do not give a true and fair view of the state of the group's affairs.
However, in a separate note attached to the accounts, it states that it is the opinion of the directors, which includes Michael Smurfit, that "the current market conditions are not relevant to the value of the fixed assets as they do not intend to dispose of them in the short-term, but retain them for a future date when market sentiment is more favourable".
Last year, Mr Smurfit purchased developer Gerry Gannon's 49pc stake in the K Club for a reported €40m to give him full control of the business.