Dr. Quirkey’s business woes continue as the casino posts €14m losses last year

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Business problems continued last year for casino and arcade owner Richard Quirke as his business posted a pre-tax loss of €14m.

Quirke, who is the father-in-law of model Rosanna Davison, was already baffled by an alleged €2.56 million fraud perpetrated at his business that he and another director first uncovered in December 2020.

New accounts from the group that operates the 75-year-old businessman’s Dr Quirkey good weather emporium reveal that a forced closure by Covid-19 contributed to a nearly nine-fold increase in pre-tax losses, from 1.6 million euros in 2020 to 14 million euros in the 12 months to the end of last June.

In the third set of annual accounts for Dublin Pool and Juke Box Company Ltd filed with the Companies Office in recent weeks, they show that the company booked the losses as the business took a revenue hit of €8m, or the 84 percent, when revenues collapsed. from 9.58 million euros to 1.5 million euros in the 12 months to the end of last June.

The directors state that the casino and arcade business was closed from spring 2020 to December 2021 due to Covid-19 lockdown measures “which wiped out their main source of income”.

Last year’s loss meant the group’s balance sheet took a big hit with shareholder funds falling from €31.93m to €17.85m.

The new accounts show that the alleged fraud had no further costs during the 12 months to the end of last June: the alleged fraud cost the group €543,758 in 2020, €1,017 million in 2019 and €1,009 million in 2018.

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In response to the suspected fraud, the company implemented an extensive and extensive governance and operational improvement program at all levels within the organization.

However, the company’s interest bill for back taxes continued to rise in 2021 and now stands at €1.59m over four years.

forensic examination


As a result of the suspected fraud, a forensic examination by third-party financial consultants retained by the company of the company’s systems led to the identification of unpaid interest and tax liabilities.

The new accounts show that the interest bill for taxes due last year was €645,415, after €946,952 for the same item during the previous three years.

The forced closure of the company due to Covid-19 coincided with the reduction in the number of employees by 30, from 86 to 56.

Personnel costs were reduced from €6.18 million to €1.9 million, which included €381,133 for “staff loss of office compensation” last year.

Directors’ pay was drastically reduced from €213,000 to €53,250.

The business posted an operating loss last year of €4.95 million and this followed operating losses of €951,173 in 2020.

Last year’s €14 million loss takes into account the €8.4 million property write-down made up of a €8.03 million write-down of land and buildings and €432,060 in real estate investments.

The loss also takes into account non-cash depreciation costs of €1.53 million and a loss of €1.66 million on the disposal of tangible assets.

Ireland

Alleged €2 million fraud discovered in Dr Quirkey’s Go…

On a more optimistic note, the directors state that “now that the Covid-19 restrictions have been lifted, the directors are confident that the business will fully recover and result in strong liquidity.”

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The group’s cash funds were reduced from 3.93 million euros to 3.23 million euros.

A note attached to the accounts, signed on May 13, states that the company “is currently the subject of an investigation by the Treasury, the outcome of which is currently uncertain.”

The directors state that they have provided for additional liabilities and interests in the financial statements, but have not provided for any penalties that might arise.



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