Ballymore dumps non-core assets for NAMA plan
Sean Mulryan's Ballymore property arm in the UK has disposed of a number of non-core assets since March after agreeing a seven-year business plan with NAMA.
The company also expects to complete a "reorganisation" of its borrowings with NAMA in the near future, having made "significant advancements" toward doing so since agreeing its business plan with the agency in April 2011. The firm owed £1.05bn (€1.3bn) in bank and NAMA loans at the end of last March.
But accounts just filed for the Ballymore arm in the UK, for the financial year to the end of last March, also show that the directors of the company have continued to receive high salaries despite the business racking up massive losses.
Directors of the company – who include Roscommon-born Sean Mulryan as well as John Mulryan, Brian Fagan and David Pearson – were paid a total of £400,000 in the last financial year.
That was more than double the total £195,000 directors were paid in the previous financial year. David Pearson was appointed a director in October 2011, while David Brophy resigned as a director in November 2011. The highest paid director received £175,000.
Pre-tax losses at the UK business soared to £372m in the last financial year from £119.2m in the previous period after it notched up £294m in impairments. The group's accumulated losses at the end of last March last stood at £685m with shareholders' deficit topping £811m.
The figures show that the group's revenues last year declined by 14pc from £162.4m to £139.2m.
The revenues comprised £120.2m in property sales, £12.5m in rental income and management fees, and £6.4m in hotel revenues.
The directors list the outcomes as disposal of its hotel asset and business; disposal of the group's 25pc share in the Wood Wharf development; sale and disposal of units at a number of group developments and continuation of development on a number of key sites.
They add that they are confident that the group will meet its targets in its agreement with NAMA.
They point out that since year end the group has had agreed funding in principle for two significant developments in the Greater London area.