Westlife singer’s firm expects to sell all remaining homes in 2011

THE construction firm which is co-owned by Westlife singer, Shane Filan anticipates that it will sell all of its remaining homes by the end of this year.

However, losses at the Sligo-based Shafin Developments Ltd last year continued to mount with the company recording a loss of €278,468 for the 12 months to the end of December last.

This follows the company recording a loss of €2.6 million in 2009 resulting in accumulated losses of €3m at the end of last year.

Shafin Developments wasestablished in 2004 by ShaneFilan and his brother, Finbarr.

The company has acquired landmark sites in the environs of Sligo town, securingplanning permission for an 80-bed nursing home in the town and for a 50-bed nursing home and mixed use development at Dromahair village, Co Leitrim.

The figures show that the company reduced the amount owed to the banks in 2010 from €5.56m to €4.77m.

The accounts confirm that all of the monies are secured by personal guarantees and that there is a legal charge over the life policies in the names of the directors, Finbarr Filan, Geraldine Gilroy, Shane Filan and Gillian Filan.

Shane and Finbarr Filan concede in the latest filed accounts however that the amount they will receive for the completed homes by Shafin Developments Ltd will be less than cost.

The value of the company’s work in progress declined from €4.9m to €3.7m last year.

The note states: “In relation to the completed houses held by the company and in light of the significant downturn in the economic climate, the uncertainty surrounding the Irish housing sectors, these houses are valued at an amount, which in the opinion of the directors, is their ultimate net realisable value, which is below cost.”

The directors state that in relation to sites where construction has yet to commence, these are valued at site cost plus interest on ban debt capitalised, plus any development costs incurred to date.

Auditors for the company, Gilroy Gannon said that the company’s going concern status is dependent on the continued financial support of the company’s directors and also its bankers.

The auditors state that the going concern status is alsodependent on the ultimate value of stock not beingsignificantly less than its carrying value in the financial statements.