Park Developments sinks further into the red

The property group Park Developments, owned by developer Michael Cotter, plunged further into the red last year to record a pre-tax loss of €38.4m.

The renowned yachtsman and vintage car enthusiast leads Park Developments, which last year recorded the loss after a €30.6m writedown in assets.

The writedown is made up of a €25.7m writedown in stocks and work in progress, as well as a €4.9m writedown in development land.

Consolidated accounts just filed to the Companies Office by Park Developments (Dublin) Ltd show that the group sustained the loss as revenues that includes share of joint ventures increased by 10% from €62.1m to €68.6m in the 12 months to the end of December 2011.

The filings show that a majority of the group’s work is now taking place in the UK, accounting for 53% of revenues last year, with the remaining 47% generated in Ireland.

The figures show that the company — which has had its loans transferred to Nama — paid a dividend of €344,365 last year to its immediate parent company.

The figures show that the firm’s six directors, including Galway native Mr Cotter, shared aggregate remuneration last year of €960,000.

The loss last year follows a €1m loss sustained in 2010.

Park Developments, which is best known as the company behind the Park commercial development in Carrickmines, Co Dublin, had shareholder funds last year of €63m that included €55m in accumulated profits.

The figures show that the group’s cash last year declined from €9.2m to €1.3m.

The company owed €380m to its parent company, Quorn, at year end and was owed €342m by group companies.

In a note attached to the company’s accounts, it is stated that the directors have submitted a comprehensive and viable business plan with Nama outlining the company’s revised development strategy.

The note states that the plan incorporates cash flow projections up to 2018. “The projections include assumptions in relation to the timing and value of the sale of the assets currently complete or nearing completion,” read the note.

“The directors have agreed with Nama commercial terms upon which Nama shall agree to provide loan facilities to the group for the foreseeable future for funding facilities on terms acceptable to the directors and Nama.”

Numbers employed by the firm last year dropped from 49 to 30, with redundancy costs totalling €131,851. The redundancy payments contributed to staff costs of €2.46m, down from the €4m that fell under the same heading in 2010.


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