Renamed Shannon Commercial Enterprises Ltd, the former regional development agency has now been subsumed into the recently-formed Shannon Group plc that also operates Shannon airport.
Now new accounts show that the restructuring of Shannon Development into a commercial property company last year cost €1m, with rebranding costs totalling €130,000, relocation costs amounting to €162,000 and professional fees of €544,000.
There was also a €165,000 staff recharge from the Shannon Airport Authority (SAA) in relation to the restructuring.
Shannon Development had the responsibility of attracting inward investment into the Shannon Free Zone and also oversaw the management of high-profile tourist attractions, including Bunratty Castle.
Accounts filed with the Companies Office show that the voluntary redundancy scheme and early retirement scheme last year cost the tax-payer €3.43m after receipt of Oireachtas grants to fund the downsizing.
The accounts show that 33 exited under the scheme, resulting in average pay-offs of more than €100,000.
The figures show that the firm last year recorded a pre-tax loss of €1.5m that followed a pre-tax loss of €41.17m in 2012 that was largely attributable to a write-down of €32m in fixed assets.
The firm’s revenues last year decreased by 6% going from €29.18m to €27.21m.
Revenues included €10.76m mainly made up from rent paid by multi-nationals located in the Shannon Free Zone and the National Technology Park in Limerick.
The directors’ report states that “despite the difficult economic environment and ageing property portfolio, this has only reduced by 4% on 2012 levels.”
The report adds: “There has also been an encouraging increase in leasing and property sales inquiries for the year to date in 2014, but there is also a challenge facing the company as significant re-investment is required in the property portfolio, particularly in the Shannon Free Zone.”
The directors state that the group “is debt free with a cash balance of €12m at the end of the year, increasing from €7m at the end of 2012. Profit on sale of assets and investments of €5m have been generated by the group during the year, with €6m in capital expenditure invested in property and tourism assets.”
The salary of the former ceo, Dr Vincent Cunnane was €143,807 and Dr Cunnane received €104,946 for 2013 along with €9,500 in pension contributions and €4,126 in relation to payment in kind before his contract ended on August 31 2013.
Numbers employed by Shannon Development reduced from 116 to 67 while numbers employed by Shannon Development subsidiaries increased from 141 to 161.