Company providing accommodation for asylum seekers loses €8.9m
Accounts lodged by Mid Town Property Development Ltd to the Companies Office, show the firm had losses of €8.99m in the 18 months to the end of December 2009 following pre-tax losses of €1.1m in the 12 months to the end of June 2008.
The company’s accumulated losses at the end of December were €10.1m.
The property firm is fully owned by Bridgestock Ltd, which is one of the largest providers of accommodation to asylum seekers in the country. The company operates asylum seeker accommodation centres in Co Mayo, Sligo, Galway, and Westmeath providing accommodation to 934 asylum seekers.
Accounts for Bridgestock Ltd show its €5.4m in operating profits in 2009 were hit by €2.1m written off in a loan to Mid Town Property Development Ltd.
Seamus Gillen is listed as a director of both companies.
Bridgestock Ltd became a 100% shareholder in Mid Town Property Development Ltd in July 2008. Last May the company secured conditional planning permission for a mixed use development comprising 12 blocks including a hotel, library, retail, leisure centre and residential accommodation at Ballyhaunis, Co Mayo.
The abridged accounts show that the company has bank loans of €19.6m. The directors for Mid-Town Property Development state “the results for the period and the financial position at the period end were foreseen by the directors who expect challenging economic conditions for the building industry in the foreseeable future”.
In a note attached to the accounts, it states “due to the construction downturn, Mid Town Property Development Ltd revised downwards the value of its stock and work in progress resulting in a net loss of €8.99m for the 18 months to the end of December 2009”.
The note continues: “Mid Town Property Developments Ltd has continued to service its bank loans with funding from Bridgestock Ltd.”
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