€2.8m loss for Reynolds steel firm

A STEEL company owned by businessman Leslie Reynolds recorded substantial pre-tax losses of almost €2.8 million in the year to the end of April 2009.

This compares with a profit of €715,995 in the previous year, according to accounts just filed for Leslie Reynolds & Co.

According to the accounts the directors decided to hold an extraordinary general meeting given that the net assets of the company are less than half the issued share capital. It said it would review its financial situation at the meeting.

The accounts show two properties owned by the firm reduced in value by just over €4.2m.

The directors said in the filed accounts they are of the view that the company will continue to receive the support of its shareholders and its principal lending institution.

The auditors in their report said under an “emphasis of matter” that without qualifying their opinion, they have considered the adequacy of the disclosures made concerning the availability of continued financial support from shareholders and the principal lending institution of the company. They said the financial statements have been prepared on a going concern basis as a result.

In 2005 Mr Reynolds made a €9.5m settlement with the Revenue Commissioners and received a three-month jail sentence after being found guilty of tax evasion by the Dublin Circuit Criminal Court.

This was the second- biggest published settlement ever made with Revenue.

The company accounts show gross profit in the year was €2.4m, compared with just over €4m in the previous year. Administrative expenses were €3.3m, down slightly on the previous year.

An exceptional item of €1.9m is noted, which the company said was due to an impairment on freehold property.

The directors did not recommend the payment of a dividend.

The company employed 25 people last year and although this was the same as the previous year, staff costs fell from €2m to €1.8m.

Directors’ remuneration in the year was €322,496 compared with €351,168 in the previous year.