‘Square’ shopping centre in the red with €940k loss

The company that runs The Square shopping centre in Tallaght slipped into the red last year; recording pre-tax losses of €939,834.

New accounts filed by The Square Management Ltd show that the pre-tax loss – for the 12 months to the end of September last – followed pre-tax profits of €3.7m in 2013. However, that 2013 profit arose from solicitor and property developer, Noel Smyth waiving €4.56m in fees that were owed to him.

Last year, the firm’s revenues declined by 15%, from €7.5m to €6.39m. The firm’s operating losses last year increased more than four fold to €158,628 and interest charges of €781,206 added to the loss to result in the pre-tax losses of €939,834.

During the year, the firm’s bank debt reduced from €17.9m to €15.5m and its net liabilities at year end stood at €14.99m. The company’s cash pile declined, over the 12-month period, from €4.2m to €1.72m.

A breakdown of the firm’s revenues show that its service charge revenue decreased by 15% from €6.59m to €5.58m while car park turnover declined by 14% from €944,471 to €810,840.

The company owns the freehold to The Square and is responsible for its maintenance and other services to tenants, and the operation of its car park.

The accounts state that Nama has acquired the firm’s loans and a note on the accounts states the company continues to receive financial support from Nama.

“This financial support is in the form of the periodic release of funds to enable the company to discharge its overheads,” the note says.

The directors state they believe that Nama will continue to support the operations of the company for the foreseeable future.

The note further states: “Accordingly, the directors consider it appropriate to prepare the financial statements on a going-concern basis. However, if Nama were to discontinue its provision of funds to the company, the company may be unable to continue realising its assets and discharging its liabilities in the normal course of business.”

The note says, the directors expect that the company will be able to meet its liabilities as they fall due for the foreseeable future. The directors’ said The Square Management Ltd is redeveloping part of the property and the site surrounding. The Square with a view to realising additional value.