Lally-controlled companies report €440m net liabilities

COMPANIES controlled by Galway developer John Lally had net liabilities totalling over €440 million at the end of last year.

Accounts lodged by his holding firm, Lalco Holdings Ltd, to the Companies Office show that the group’s net liabilities at the end of December last totalled €441.2m.

This followed companies controlled by Lalco Holdings incurring combined losses of €47.8m last year.

At the end of December, Lalco Holdings Ltd had accumulated losses of €43m after incurring a loss of €789,877 last year.

The figures show that the largest loss was recorded by property development company, Devano Developments Ltd, that lost €30.9m in the 18 months prior to last December with net liabilities of €179.7m.

A separate development company, Brackville Holdings Ltd, had net liabilities of €140.5m after recording a loss of €13.4m. Another subsidiary, Sova Properties, had net liabilities totalling €63.9m after recording a loss of €1.9m.

Lalco Holdings says the group submitted a detailed business plan which was evaluated by Nama and a memorandum of understanding was reached. But the directors say “no formal commitment of financial support has been received at this time.”

They say that considering the circumstances described and taken with the future potential support of Nama, “the directors are hopeful that the company will have adequate resources to continue in operational existence for the foreseeable future”.

Auditors for Lalco Holdings Ltd, Deloitte, have issued a disclaimer on the view given by the company’s financial statements.

Deloitte states it is unable to form an opinion as to whether the statements give a true and fair view of the state of the affairs of the company.