O’Flynn property company sees €122m loss

A property firm controlled by the Cork developer, Michael O’Flynn, last year incurred losses of £99.69m (€122m).

New accounts, filed in error, by Mr O’Flynn’s unlimited Tiger Developments show that the firm incurred the £99.6m loss after impairments on assets and inter-company loans.

The figures show that the five people employed directly by the firm received an aggregate £519,944 in salaries or on average over £100,000 each.

Last month, Fine Gael junior minister Lucinda Creighton apologised in the High Court to Mr O’Flynn over statements made by her, in which, he alleged, she defamed him.

Ms Creighton also made a contribution to Mr O’Flynn’s legal costs in the case that arose from Ms Creighton’s speech on standards in public life to the MacGill Summer School.

Tiger Developments has “a major asset portfolio in the UK” and as the firm is unlimited it is not required to publish annual accounts.

However, O’Flynn Construction — which built the Elysian Tower in Cork centre — last night admitted that the accounts were filed in error with the Companies Registration Office.

The filed accounts provide a rare insight into the finances of Mr O’Flynn’s property business, as his O’Flynn Construction is also unlimited.

The loss at Tiger Developments arises from a write-off of £89.6m concerning the non-recoverability of inter-company balances and £6.5m in a property write-down.

A spokesman for the O’Flynn Group said yesterday: “The accounts filed represent one small part of the Tiger Development Group which comprises over 60 different entities.

“The accounts, which were filed in error, represent just one of the companies in the Tiger Group without its subsidiaries. The losses recorded are derived from an inter-company provision which are eliminated within the consolidated accounts. The overall health of the O’Flynn Group is very positive.”

The figures show the firm’s revenues increased from £1.86m to £1.9m, with the directors stating that “the company has not engaged in any significant property transactions for the year and has engaged on a strategy of working on its existing property portfolio in advancing planning applications and other such activities designed to maximise the value of assets held”.

The directors state: “Despite the current economic downturn and its impact on the performance of property assets, the directors remain confident about the company’s future prospects given its portfolio of robust and well-located development and investment properties. The company intends to leverage the value of these properties through their development or sale when market conditions allow this.”

The £99.6m loss last year followed losses of £13.2m in 2010 and the firm had accumulated losses of £161.5m. Its shareholders deficit totalled £114m.

The firm had loans totalling £60.7m outstanding to Nama at the end of December 2011. The firm had property assets witha book value of £45m. Tiger Developments is part of O’Flynn’s Coleridge Group.

A note attached to the accounts states: “The agreement with Nama sees the group progressively reducing its liabilities over an extended period of years through a managed programme of property disposals.”

“The full detail of terms and the new facilities are subject to a number of conditions which include no adverse change in the group’s business and financial position. These also require the successful re-financing of some loans with funders of the group other than Nama on terms that are satisfactory to Nama.”

The directors state they believe the group will be in a position to meet the financial and debt commitments agreed with Nama.

The note adds: “In addition to the foregoing process involving Nama, the directors may seek external third party investor funding which may, over time substitute for the group’s current financing arrangements.”


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