Faxhill moves further into red

A construction and hotel group plunged further into the red last year after incurring write-downs totalling €10.9m.

According to new accounts filed by Faxhill Homes Ltd, the firm recorded a pre-tax loss of €14.69m in the 12 months to the end of October last after recording a loss of €44.7m in 2011.

Revenues at Faxhill Homes — which hit the headlines over a decade ago after building an extension to the home of independent Tipperary TD Michael Lowry — last year increased by 8% from €10.6m to €11.5m.

The Kildare group’s main activity is the operation of the four-star Killashee House Hotel and Spa. The group recorded no revenues from construction last year.

The vast bulk of revenues came from the hotel operation, totalling €10.2m last year, an increase of 9% on 2011.

Faxhill’s directors are listed as Denis McCoy and John Tierney, who was previously linked with the Drumaville consortium of Irish businessmen who bought Sunderland Football Club seven years ago.

In spite of the losses and decline in revenues, aggregate remuneration for the two directors remained on the same level as 2011 at €200,000.

The firm recorded an operating loss of €1.2m before the exceptional write down of €10.9m is taken into account.

Faxhill also incurred €2m cost in interest payable and €466,769 in investments written off.

Numbers employed by the group increased from 181 to 191 with staff costs increasing by 7% from €4.3m to €4.6m.

On the group’s going concern status, a note states that “the group continues to incur significant losses…

“The loss for the year of €13.6m reflects the significant impairment carried out and has resulted in accumulated negative reserves of €62.5m.

“The directors believe that the group will retain support of its bankers and consider it appropriate to prepare the account on a going concern basis.”

The directors state they intend to continue to expand and develop the trading activities of the group.

The group had bank loans totalling €75m at the end of October. The firm’s shareholders’ deficit is €62.7m.

The loss last year takes account of non-cash depreciation costs totalling €1.3m. The company last year received a tax credit of €1m.

The group’s cash increased during the year, going from €726,358 to €1.34m.

The accounts also confirm that the group has made a provision of €270,000 in relation to a claim by Kildare County Council against the company for planning permission levies which is currently under review.