Profits decline at Michael Lowry’s Garuda Ltd

ACCUMULATED profits at Michael Lowry’s refrigeration business last year fell by almost €150,000, new figures show.

Abridged accounts just filed by Garuda Ltd to the Companies Office show that accumulated profits at the company dropped by €148,195 from €1.23 million to €1.08m in the 12 months to the end of December last.

Garuda, which trades under the name Streamline Enterprises, was established by Mr Lowry a year after he was first elected a Fine Gael TD in 1987.

The accounts do not provide a turnover figure.

However, they do confirm that the company’s shareholder funds dropped by 20.5% or €447,002 from €2.18m to €1.73m.

Along with the drop in accumulated profits, a drop of €298,807 from €953,665 to €654,858 recorded in the company’s revaluation reserve also contributed to the drop in shareholder funds.

The accounts also record that cash in the firm last year dropped by 35% from €852,423 to €550,535 with debtors dropping from €1.56m to €998,859.

The company’s tangible assets reduced in value from €1.25m to €905,574 during the year.

In 2005, Garuda reached a settlement with Revenue to pay over €1.26m in outstanding tax, interest and penalties. The figures show that the company’s creditors declined from €1.59m to €800,607.

In 2009, the company recorded pre-tax profits of €354,046.

The company is very much a family affair, with Mr Lowry and his brother Patrick listed as directors.

The figures show that Garuda owed connected company, Abbeygreen Consultants Ltd €25,286 at the end of last year compared to €109,786 owed at the end of 2009.

Transportation fees of €16,200 were also listed, which were provided by Michael Lowry, son of the director.

Separate accounts for Abbeygreen Consultants Ltd confirm that the company made a loss of €32,596 in 2010.

The deputy for Tipperary North is also a director of Abbeygreen and according to a note attached to the accounts “the directors have indicated their willingness to provide additional support if required by the business and they believe that the business can return to profitability in the near future”.

“After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.”

Mr Lowry was unavailable for comment yesterday.