Mulryan firm’s losses hit €58.8m

A HOUSE-BUILDING firm controlled by developer Seán Mulryan recorded combined losses of €58.8 million in 2009 and 2010, company accounts confirm.

Ballymore Residential Ltd is one of a number of the Ballymore companies that have had its loans transferred to NAMA.

However, accounts for 2010 and 2009 just filed to the Companies Office show that despite of the losses, the company paid a combined dividend of €140,748 to its shareholder, the Isle of Man-based Ballymore Ireland Group Ltd.

During the period, Ballymore Residential recorded a pre-tax loss of €45.9m to the end of March last year following a pre-tax loss of €12.9m in 2009.

Turnover declined from €6m in 2009 to a deficit of €780,898 in turnover last year, attributed to project management income last year of €3.2m.

This compares to revenues of €96.4m in 2006.

The loss last year is mainly attributable to the company writing off €39.6m owed to it by group companies. The directors state that the recoverable amount is subject to uncertainty due to property market conditions.

The company had accumulated losses of €34.6m at the end of March last year.

The company owed €47m to group undertakings and a further €9m in bank loans.

A note states: “As required by NAMA, the group has submitted a detailed business plan with a view to seeking NAMA’s approval of the plan.

“While formal approval of the group’s business plan has yet to be completed, the directors are confident that such approval will be forthcoming and hence the financial statements are on a going concern basis.”

The directors state that the key assumptions of the company’s financial plan include the acceptance by NAMA of the group’s business plan and the ability of the group to implement the plan; bank loans falling due for repayment in the coming year with NAMA will be renewed and in the case of current breaches of bank covenants and any future breaches of bank covenants that arise, that the related loan facilities will be re-negotiated and renewed.

The directors state that failure to deliver on the above assumptions may cast significant doubt on the ability of the group and company to continue as a going concern.