The parent company in Jack Ronan’s Vita Cortex group has ceased trading, in spite of reducing its accumulated losses by €780,000 last year, new figures show.
Returns made by the group’s holding firm, Vita Five Five Ltd, state that “the company has ceased trading and, as a consequence, the financial statements have been prepared on a basis other than that of a going concern, which includes, where appropriate, writing down the company’s assets to net realisable value”.
At the end of April, 2014, Vita Five Five Ltd had accumulated losses of €7m, down from €7.8m one year earlier.
The reduction in losses for Vita Five Five last year followed the firm’s 2013 loss of €2.45m. This followed a loss of €237,576 in fiscal 2012.
A note attached to the accounts confirms that the business has agreed a strategy with Nama to dispose of property assets that have been pledged as loan security.
Vita Five Five Ltd subsidiary, Vita Cortex, was involved in a long-running dispute in 2012, when workers staged a five-month sit-in at the company’s Cork plant, in a row over redundancy payments.
The workers ended their sit-in in May, 2012, after receiving their redundancy payments and they were subsequently greeted at Aras an Uachtarain by President Michael D Higgins.
According to a note attached to the Vita Five Five accounts, “Nama have an agreed strategy for the disposal of property assets of the group that are pledged as security for the loan. This is reviewed on a regular basis”.
Vita Five Five has bank loans totalling €6.8m and a note states that “security for the bank loan (now taken over by Nama) was provided by the company and certain subsidiary companies, in the form of a guarantee supported by a mortgage debenture over all the present and future assets of these companies.
"The guarantee in each company is capped at €8.5m”.
The figures show that Vita Cortex (Dublin) Ltd recorded a loss of €18,871 in 2014, following a loss of €2.27m in 2013.
A note attached to the Vita Five Five accounts states that in the current year, the value of the investments was written off in full, with the firm’s unlisted shares reduced from €2.7m to zero in 2014.
On the firm ceasing trading, the note states that “provision has also been made for any onerous contractual commitments at the balance-sheet date.
"The financial statements do not include any provision for the future costs of terminating the business of the company, except to the extent that such were committed at the balance-sheet date”.
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