Shannon agency losses hit €16.5m

PRE-TAX losses atsemi-state agency Shannon Development totalled €16.5 million last year as the company continued to be hit by the fallout from the collapse in the property market.

In the regional agency’s 2010 annual report just published, the accounts confirm that the agency’s pre-tax loss amounted to €16.5m to the end of December last and this followed a pre-tax loss of €17.2m in 2009.

The directors concede that the company’s target of returning to “financial sustainability” by 2013 has been thrown into question by the prevailing economic climate.

The company has operated a self-financing model since the 1990s primarily based on using revenue from its property base to fund its day to day operations and economic development projects in the Shannon region.

Last year, Shannon Development earned €13.3m in rental income from its property portfolio, but its income from property sales has collapsed resulting in the large losses of last year and 2009.

Between 2001 and 2008, the company’s profits from sale of property assets totalled €68m.

However, figures in the new accounts shows that the company made a profit of just €755,000 from the sale of property last year – in stark contrast to the massive €8.5m profit generated in 2008.

The report shows that the annual salary of chief executive, Dr Vincent Cunnane was reduced last year from €165,000 to €154,000.

Dr Cunnane’s total remuneration for 2010 amounted to €180,947 when pension contributions of €14,494 and €12,720 of benefit in kind are taken into account.

The figures show that the 13-person board received aggregate emoluments of €146,000 last year with chairman, Cllr John Brassil (FF) receiving €22,000 of that total.

The board also incurred an additional €23,000 in expenses.