Nama has yet to approve a final business plan for the loss-making Bovale Developments.
According to an auditor’s report for the company recently lodged with the Companies Office, losses continued to mount at Bovale in the 12 months to the end of Dec 31 last year.
This followed losses in the previous two years, but the extent of the losses are not known as Bovale Developments, controlled by Michael & Tom Bailey, is an unlimited company and is not required to file annual accounts.
However, a three-page auditor’s report by the firm’s auditors, KPMG confirms that the liabilities of the company exceeded assets on Dec 31 last and there existed a situation on that date that may require the convening of an extraordinary general meeting of the company.
The losses are in contrast to the last publicly-known profits recorded by the company in 2004/03.
The last filed accounts prior to re-registering as an unlimited company show that over those two years, the two Bailey brothers shared remuneration of €19.7m, or €9.8m each, making them the biggest salary earners in the State at the time. The firm recorded pre-tax profits of €69m in 2003.
In 2006, the Roscommon natives made a record €22.17m tax settlement with the Revenue Commissioners that arose from the Flood/Mahon tribunal.
A previous auditor’s report stated that Nama had approved a business plan for Bovale Developments.
However, recently appointed auditors to the firm, KPMG state that “the directors are in discussions with Nama with a view to agreeing a final business plan and putting in place longer-term facilities”.
The note states that the firm “has outstanding bank loans repayable on demand”.
The auditors state that the outcome of the company’s discussions with Nama “represents a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern”.
The note states: “The directors are confident that discussions with Nama will be satisfactorily concluded.”
A UK-based arm of the group, Bovale Ltd reported accumulated losses of £46.9m at the end of September last year.
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