THE Leinster Leader Ltd made losses of €201,000 last year due to the disposal of an asset but directors say they are confident about the company’s future.
The loss for the year to the end of January 2010 is due to the disposal of the investment in Tallaght Publishing Ltd on January 1 this year. This compares to a loss of €21.2 million the previous year. This figure related to the impairment of investments.
The accounts said a letter confirms that it is the intention of the company’s parent group, Johnston Press plc, to provide financial support where deemed necessary to the company within the terms of the renegotiated bank facility which was concluded on August 28, 2009.
The accounts, which cover the 53 weeks to January 2, 2010 said a letter of support has been provided by the company’s ultimate parent company Johnston Press plc, which confirms that the group will not seek repayment of the intercompany balances for at least 12 months from the date of signing the financial statements.
The company had net liabilities of €19.4m at the balance sheet date.
According to accounts, the company employed 28 people last year – one less than the previous year. Staff costs amounted to €1.19m compared to €1.2m in the previous year.
The Leinster Leader saw turnover fall from €1.27m to €1.19m.
The company acts as an agent, publishing and distributing newspapers on behalf of Johnston Press Ireland Limited, with all costs of employing personnel recharged at cost to Johnston Press Ireland Ltd, according to the accounts.
The directors believe the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. “The Johnston Press plc group has recently renegotiated its financing facilities of which the company is a guarantor to,” the accounts read.
“The group’s forecasts and projection, taking account of reasonably possible changes in trading performance, show that the group should be able to operate within the level of its current committed facilities,” they added.
Although the company is in a net liability position, this is due to amounts owing to fellow group undertakings within the next 12 months, the demand for repayment of which is wholly within the group’s control, it said.
After making enquiries, the directors have a “reasonable expectation” that the company has access to adequate resources to continue in operational existence for the foreseeable future.
At the start of the year the company disposed of shares in Tallaght Publishing for €150,000 and it made a loss on the disposal of €210,000.
© Irish Examiner Ltd. All rights reserved