Ballymore unit books a loss of €11m
THE project management and administration off-shoot of Sean Mulryan's Ballymore booked losses of almost €11m last year and said its ability to recoup almost €57m owed by group companies was "subject to uncertainty" given the state of the property market.
The situation is revealed in accounts filed for Ballymore Properties Ireland. The company is just one entity in the network that makes up Mr Mulryan's multi-billion euro Ballymore group, but its accounts do offer some insight into the overall group.
The €10.9m in losses for the year ended March 2009 came as the amount invoiced to Ballymore group companies dropped from almost €15.9m to €4.4m. Directors' remuneration more than halved to €4.7m, but bottom-line losses of €10.9m were still recorded. Notes to the accounts reveal that the repayment of €56.7m owed by group companies was uncertain due to the current condition of the property market. The accounts stress, however, that Ballymore Properties Ireland's directors believe the amounts owed by fellow companies "will be recovered in the medium term".
The accounts also refer to a €320m refinancing to have been carried out by the Ballymore Ireland group by the end of March. It is understood that Ballymore has reduced its debt considerably since the accounts were signed off in September 2009 through equity finance, joint venture finance and the disposal of assets. Much of the remaining debt is to be transferred into NAMA.
A spokesman said Ballymore has "reduced its overheads" and was implementing its "rationalisation" process. He said the directors' remuneration paid by Ballymore Properties Ireland in 2008 and 2009 included one-off payments to retiring senior directors.