Cork builder’s landbank falls €43m

CORK construction firm, Murnane & O’Shea has written down the value of its landbank by more than €43 million, but it said 2011 is looking more positive than previous years.

The 30% writedown on the land resulted in the company reporting pre-tax losses of €51m in 2009 compared with a profit of €1.5m in 2008.

The Bantry-based property developers and building contractors said the move is in response to current economic conditions in the construction industry and called it a “prudent measure”. It said that the impairment charge does not constitute a cash loss to the group but it has eroded the balance sheet.