Galway-based building firm Kenny Group hit by losses

A RANGE of companies from one of the largest building groups in the country, the Galway-based Kenny Group, incurred losses in 2009, new figures show.

In accounts just lodged for 2009 by a series of Kenny Group firms with the Companies Office, they show that Kenny Business Parks recorded a loss of €551,803; that Kenny Developments & Co recorded a loss of €1.48m with Kenny Developments recording a loss of €46,371 in the 12 months to December 2009.

A note attached to the accounts for the three companies confirm that further losses are projected for 2010.

A note attached to the accounts of Kenny Developments & Co state that “the company, fellow subsidiaries and related parties, recently restructured their combined debt with financial institutions to ensure that all obligations are being met on a go-forward basis.

The note states: “The renewed facilities have been put in place subject to review by the bank in October 2011.”

The loss sustained in 2009 reduced the company’s accumulated profits to €2.94m.

The figures show the company is owed €14.9m from Kenny Group companies, including €14.4m from the Model Investment Partnership.

Kenny Developments & Co Ltd owed €16.6m at the end of 2009, with €7.1m owed to group and related undertakings and owed €3.8m to Kenny Developments along with a bank overdraft of €2.5m.

A note attached to the accounts states: “NAMA is a work-out vehicle, not a liquidation vehicle and can take a longer term view on borrowers and assets if it makes commercial sense to do so.”

The directors say some of the key assumptions to be made in lodging the business plan with NAMA include the acceptance by NAMA of the business plan, the renewal by NAMA of the bank facilities, no further serious deterioration in the market value of the properties and sites held by the various entities and the recoverability of all debtors, both third party and related.

The directors state: “Based on the draft business plan and the key assumptions noted above, the directors are of the opinion that the company will have sufficient cash to meet its liquidity requirements for at least 12 months from the date of approval of the financial statements.”

The directors accept that if the assumptions and objectives are not achieved, it would cast significant doubt on the ability of the company to continue as a going concern and it may, therefore, be unable to realise its assets and discharge its liabilities in the normal course of business.