Ballymore’s UK pre-tax profits fall

Pre-tax profits at the UK arm of Sean Mulryan’s Ballymore property development business fell 37% to £88.3m (€103.4m) last year.

Ballymore’s UK pre-tax profits fall

Newly filed accounts, however, show that revenues at Ballymore’s UK division jumped from £99.29m to £555.16m during the 12 months to the end of last March.

The company’s directors said the sharp increase in revenues reflected a significant increase in the sale of residential units during the year.

The previous year’s profit was boosted by a £50m profit arising from the restructuring of the company’s interest in a joint venture.

The company also paid £32.5m in interest charges in its latest financial year, compared to just £1.9m in the previous 12 months.

A major contributor to last year’s revenue boost was the sale of a property portfolio, for £161.4m, to EcoWorld Ballymore which is a joint venture between Ballymore and the Malaysian property development group, Eco World Development Group Berhad, in which Ballymore retains a 25% interest.

EcoWorld Ballymore is developing the Warden site at Canary Wharf, the Embassy Gardens Phase 2 and the London City Island Phase 2 at London’s Docklands.

In the accounts, Ballymore’s UK management said it remains focused on delivering long-term growth performance from existing developments and land banks.

Mr Mulryan recently circulated a note to employees stating Ballymore had exited Nama, having repaid €3.2bn in gross debt to the State agency since 2010. He described the repayments as “a staggering achievement”.

The directors’ report section of the UK accounts said the wider Ballymore group repaid £675m of Nama debt in the year under review.

Regarding the threat of Brexit, Ballymore’s UK directors said that while some uncertainty is expected in markets, they believe that the economic fundamentals are positive for London.

The company expects the majority of residential and commercial units at its Docklands properties to sell in the current financial year.

The latest accounts disclose that, at the end of March, the company’s debt amounted to £729.7m. Directors’ remuneration last year fell from £414,000 to £245,000.

The highest paid director was paid £139,000. Numbers employed by the company fell from 172 to 62.

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