Sherland group suffers steep profit and assets decline

SHERLAND ENTERTAINMENTS, a company owned by entrepreneurs Jay Bourke and Eoin Foyle, saw profits and the value of its assets decline sharply in 2007, according to accounts filed recently with the Companies’ Registration Office.

The company has been behind a range of well-known Dublin bars, restaurants and clubs including the Cafe Bar Deli group and RíRá nightclub. However, RíRá and its nextdoor bar, the Globe, were sold during 2007.

According to the group’s recently revealed financial statements for 2007, the business suffered a profit decline of €1.2 million that year, with profit and loss account figures dropping from €1.3 million to €87,141 between 2006 and 2007.

In addition, figures show the assets of the company, less its liabilities, fell from €3 million to just €114,272 over the same period.

Mr Bourke declined to comment on the figures when contacted by The Irish Times yesterday.

The filing indicates that a €1.03 million interest-free loan given to Mr Foyle was repaid in 2007.

The bank does, however, still hold assignments over the leasehold interest in several outlets of Cafe Bar Deli as security, according to the accounts.

A subsidiary of Sherland, Exchange Taverns, the company behind the Front Lounge, performed slightly better with just a 6.3 per cent decline in assets, according to the company balance sheet. The profit decline was also less severe, down €129,562 during the same period.

The business made headlines last year when Sherland Entertainments was ordered to pay a tax settlement of €158,815 following a Revenue audit that revealed undeclared VAT.

Mr Bourke said at the time it was a genuine error. “It was just a mistake, you know, we are turning over so much money.”

Mr Bourke added. “I have no sense of shame about it. None. I’m not even embarrassed.”

He highlighted employing hundreds of people and paying millions of euro in tax, excise duties and VAT over the years.

“So it’s a very small amount. I’m tax compliant. I believe in paying tax, but we made an error.”

He said at the time the Revenue should erect a statue of him given how much tax he had collected for the State.