Galway Bay Golf Club sees its losses increase to €12.2m
Accounts recently lodged with the Companies Office confirm that pre-tax losses at the Galway Bay Golf & Country Club Ltd totalled €837,531 in the 12 months to the end of March last.
This followed the company recording a loss of €1m in fiscal 2010.
The company’s bank borrowings are now under the control of Nama.
A note attached to the accounts show that the company has drafted a financial plan that includes the following: the company’s cost minimisation plan, together with the incentive plan for new members will minimise both the quantum and the duration of any deficits in funding.
The financial plan also depends on the ability of the company to source sufficient funding to cover these deficits, such funding to be provided by the shareholders or by Nama.
The financial plan is also dependent upon Nama not calling for the existing loan facilities to be repaid within 12 months of the approval of the accounts.
The note states that, based on these assumptions, “the directors believe that the company will have sufficient cash reserves and/or access to debt facilities to meet its ongoing requirements for at least 12 months”.
Mr Mulryan — whose main vehicle is Ballymore — was one of the best-known developers during the building boom.
The directors’ report states that “the golfing market continues to face difficulties in the current economic climate and this is affecting the availability of finance required to maintain and complete the upgrade of the company’s property”.
The figures show that the company’s revenues last year increased by 33% from €355,686 to €473,046 and this resulted in the company’s gross loss declining from €479,403 to €286,053.
The company recorded an operating loss of €520,822 compared to a loss of €722,388 in 2010. However, interest payments totalling €306,958 last year added to the company’s losses to result in the pre-tax loss of €827,531.
The company had a shareholders’ deficit last year of €9.8m. The loss takes account of depreciation costs of €443,533.
The figures show that the numbers employed by the company last year stood at 14 with staff costs dropping from €395,775 to €342,220.
The company had bank loans of €9.1m at the end of March last year. The bank loan is secured over lands and golf course at Renville, Oranmore, Co Galway, and guarantees from the parent company, Ballymore Ireland Group Ltd.
The figures show the company owed its directors €4m in unsecured loans.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
