Lossmaking McInerney seeks partner

A WEEK after it had its Irish operations put into examinership, housebuilder McInerney Holdings has reported half-year pre-tax losses of €10.9m.

According to the group, it now has negative net assets of €112.6m and is not in compliance with its principal banking covenants.

It confirmed that in March it enlisted the services of Goldman Sachs and began looking for potential equity partners and identified a leading international investor, US company Oaktree, willing to put money into the company provided appropriate revised financing arrangements could be secured.

The company statement said that while progress had been made in its British operations, the same could not be said of Ireland where, with its lenders withdrawing support, it was forced to seek examinership.

Despite that the company remains upbeat.

“The loss of the support of the syndicate lenders in Ireland was unexpected and caused us to seek court protection for that business,” said chairman Ned Sullivan.

“However, progress has been made on the restructuring.

“The directors believe that a restructuring and recapitalisation should ensure the best recovery for all stakeholders.”

The company’s report confirms that the Group completed just 49 private housing units in Ireland in the first half of this year and that it reported an operating loss of €2,757,000 compared to a profit of €1,784,000 in the same period in 2009.

“The Group’s average plot cost in Ireland is €24k,” it said.

“The group’s average sales price before VAT was €195,000 compared to €228,000 in the same period last year.

“McInerney owns or control 3,746 plots. Of these a total of 2,588 have planning permission.

“The Group also controls a strategic landbank of over 1,000 plots.

“Sales on hand were 201 units (2009: 230), of which 163 were Part V social units where completions are expected in 2011 and beyond.”

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