McNamara-linked property firm reports €300k profit

A PROPERTY company that developer Bernard McNamara resigned from as a director earlier this year recorded a profit of over €300,000 last year.

According to accounts just filed with the Companies Office, Mazarone Ltd recorded the profit of €313,819 in the 12 months to the end of May last year.

This followed the company recording a loss of €40.5 million in 2009 due mainly to a property writedown of €26m.

The accounts confirm Mr McNamara resigned as a director of the company in February of this year.

The other directors are listed as developer and hotelier Jerry O’Reilly and developer David Courtney.

The profit recorded by the firm last year reduced its accumulated losses from €42m to €41.7m.

The figures show that Mr McNamara advanced the company €277,655 during the year, bringing the amount the company owed him at the year of the year to €2.8m.

Mr O’Reilly and Mr Courtney each advanced a further €266,484 to the firm last year bringing the amount owed by the company to them at €1.67m and €1.66m respectively.

In total, the three were owed a total of €6.1m by Mazarone Ltd at year end.

The abridged accounts offer limited information and do not provide a turnover figure.

In a note attached to the accounts, it states that the directors “have reviewed the deterioration in the financial and economic environment which has occurred and are aware of the market conditions in which the company now operates”.

The note goes on: “This has severe consequences for their ability to verify the appropriateness of the carrying value of the property related assets in the context of the current market conditions.”

The note states that, in light of these factors, the directors impaired the investment property in the previous year by €39m to €13m.

The directors consider it appropriate to prepare the accounts on a going concern basis. The figures show that the amounts owed to creditors within one year reduced from €56.7m to €54.7m, while the company’s cash reduced from €1.69m to €2,864.

Auditors Howarth Bastow Charleton state the valuation of all property assets is subject to uncertainty due to the downturn in the property market.

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