Dragon positive despite losses

ONE of RTÉ’s ‘Dragons’, Sean Gallagher, said that he expects Smarthomes Ltd to return to profit in the next 12 to 18 months.

Mr Gallagher was commenting on returns for Smarthomes for the 12 months to the end of December 2009, which show that the Dundalk-based company recorded after tax losses of almost €500,000.

Co-owner of the firm, Mr Gallagher, said: “Notwithstanding the challenges in the economy, Smarthomes is re-inventing itself and in the next three to five years, I expect Smarthomes to be bigger and more profitable than it has been in the past.”

During the boom, Smart- homes recorded revenues in excess of €10 million and employed 70 people.

The figures show that the company’s after-tax losses last year of €492,292 follow the company recording pre-tax profits of €533,100 only three years ago. The loss last year followed the firm sustaining an after-tax loss of €678,016 in 2008.

The abridged accounts show that the company’s accumulated loss last year totalled €543,270, while the company’s shareholder funds came to €206,732.

Mr Gallagher is one of the investors on RTÉ’s Dragons’ Den show and confirmed that he stepped down as managing director of the firm during the year, but remains a shareholder.

He said: “I have absolute confidence that Smarthomes will deliver.”

Mr Gallagher said the company is being led by Derek Roddy and new managing director Eamon Conway.

Asked to comment on the results, Mr Gallagher said: “It is very simple. We are where we are as a company and as a country. I don’t do negativity. We all have to be confident for the future.”

Mr Gallagher said that the next phase of Smarthomes Ltd’s development is concentrating on developing products that will reduce energy consumption in the home through the latest technology.

Mr Gallagher said that the company has been carrying out research and development on the products and is very close to bringing the products to market.

The member of the reconstituted Fás board said: “At its height, Smarthomes was providing cabling to 2,500 homes. The company has a great track record in launching new technologies. It has a strong brand.”

The accounts show that the company reduced the amounts owed to creditors from €1m to €501,861 last year. The accounts state that the company “has continued support from its directors and its bank”.