Faxhill Homes cuts its losses by nearly €15m

FAXHILL HOMES managed to significantly reduce its losses last year but it said the trading environment still remains very challenging.

The Naas-based firm reduced its pre-tax losses from €16.3 million in 2008 to €1.7m last year.

Turnover in the year to the end of October 2009, however, fell from €17.3m to €13.9m. Most of the turnover was derived from the hotel sector (€11.6m) with just €640,781 made in construction. This was up from €371,143 in the previous year.

It made an operating profit of almost €1m on continuing operations, improved from an operating loss of €7.5m in the previous year.

Directors’ remuneration increased from €212,086 to €264,999.

Staff numbers fell from 234 to 200, with payroll costs falling from €7.2m to €5.3m, according to accounts just filed with the Companies’ Registration Office for Faxhill Homes Limited group.

The building firm rose to fame in 2001 when it built an extension to the home of former Fine Gael minister Michael Lowry, on behalf of Ben Dunne.

And a £700 fine with £10,000 costs was imposed in 2001 on Faxhill Homes and director John Tierney for issuing false documents related to £1.4m for work carried out on the homes of Mr Dunne.

Mr Tierney was also linked to Irish consortium Drumaville, which acquired Sunderland Football Club in 2006.

The accounts say the principal activities of the group are building contractors and hoteliers.

“The capacity to generate turnover of construction operations is severely restricted by the economic downturn and resulting lack of development opportunities.

“The directors are endeavouring to optimise the value of work in progress,” the accounts read.

The directors do not recommend payment of a final dividend and they said they intend to continue to expand and develop the trading activities of the group.