Losses at building firm rise to €143m

Losses at the main construction firm controlled by one of the country’s best-known developers, Gerry Gannon widened last year to €143m.

Accounts just filed by Gannon Homes Ltd for 2012 show the firm’s accumulated losses increased by €1.2m, going from €141.82m to €143.08m.

According to a note with the accounts “it is the intention of the directors, with the support of NAMA, to maximise the value of the company’s assets through the holding of assets for sale in the medium to long term, when market sentiment improves”.

The abridged accounts do not show what Mr Gannon and his fellow directors received in 2012.

However, accounts between 2011 and 2006 show Mr Gannon, Aidan Kenny and Michael Anglim shared total remuneration of €7.2m, including an exceptional pension payment of €1.5m in 2006.

The losses sustained last year are down on the €1.5m loss incurred in 2011.

The firm’s accumulated losses at the end of December 2012 stood at €143m, with liabilities exceeding assets by €142.2m.

An unidentified director advanced a loan of €2.3m to the firm during 2011 and the director advanced a further loan of €745,000 last year.

The figures show that at the end of December 2012, the firm owed €207.6m in bank loans and overdrafts. Loan facilities and overdrafts have been taken over by the National Asset Management Agency (NAMA).

The firm’s auditors, Copsey Murray, state that the loss, net deficit and other matters explained in the financial statements indicate the existence of a material uncertainty which may cast doubt about the company’s ability to continue as a going concern.

However, a note states that the financial statements have been prepared on a going-concern basis.