Debt deal leads to near-€900k income

The Dublin-based commercial vehicle importer and distributor Armalou has recorded an €876,796 gain after negotiating a debt writedown.

Accounts show the group recorded pre-tax profits of €400,506 in the 12 months to the end of December 2013. It had recorded a pre-tax loss of €3.84m in 2012.

A note with the accounts shows that, subsequent to year end, the group concluded negotiations on restructuring its debt.

It states: “The transaction has resulted in exceptional income in the amount of €876,796 in relation to a writedown of the group’s liabilities.”

The accounts show that at the end of 2013, Armalou, which saw employee numbers drop by one to 173, owed its creditors €15.1m, including €2.48m in bank loans and overdrafts and €8m to trade creditors. Revenues increased 15%, from €29.43m to €33.96m.

The main activity of the group is the import, distribution, and retailing of commercial vehicles, forklift trucks, generators, and spare parts for DAF, Hyster, and SDMO.

According to the directors’ report, “the group has longstanding and close relationships with its various suppliers and has worked together with them to manage its operations through the difficult economic climate which prevailed in recent years”.

Armalou says it “has experienced difficult trading conditions over the last number of years,” and that, “to address these difficulties, the directors and senior management continuously review the cost base of the group to ensure that costs reflect reduced turnover levels”.