Birchford sees losses jump to €18.5m

HIGH-profile property developer Terry Devey saw pre-tax losses at his holding company jump from €3.3 million to €18.5m in the year to the end of March 2010.

Operating losses at Birchford Investments Limited increased from €3.2m to €9.1m.

This is a big turnaround for the company, which in 2007 had an operating profit of €7.5m in the 12 months to the end of 2007.

In the year to the end of March 2009 turnover fell from €29.4m to €14.2m. A breakdown shows that €3.7m was generated in the property sector and €10.6m in healthcare.

Staff numbers in the year fell from 241 to 238. Staff costs increased, however, from almost €8m to €8.2m. Directors’ remuneration was down from €944,383 to €623,191.

During the year the group had three operating divisions, leisure, healthcare and property.

“The principal risks and uncertainties facing the group are those relating to the construction and healthcare sector, together with general trends in the economy,” the accounts read.

The company said it actively engages with local government agencies, trade associations and other similar bodies to promote the benefits of a safe and healthy working environment.

Mr Devey, who used to own the Chief O’Neill’s hotel in Dublin’s Smithfield has interests in the property, leisure and the healthcare sectors as well as owning a number of nursing homes in the Leinster area.

In 2008, the company entered into an agreement with a group of investors in relation to the construction and sale of four nursing homes and a commercial unit in Smithfield.