Devondale blames market for €32.5m losses
Published 08/12/2011 | 05:00
There is "virtually no market for residential and commercial property" at present according to Devondale Ltd, the construction company controlled by a branch of the Durkan construction family.
Devondale, controlled by Tony Durkan and Brian Durkan, which has €165m of debt, said it had a loss of €32.5m for 2010, with no turnover due to most of its assets being at the planning stage.
"Trading conditions remained extremely difficult in 2010," said the company.
"There was virtually no market for residential and commercial property and supply completely overtook demand."
The company had no houses or apartments up for sale in 2010 and it said it was depending on its lenders "to see it through" the very challenging conditions.
The company was a substantial borrower with Irish Nationwide, but its loans have been transferred to NAMA.
The company owns three key sites -- Fortunestown Lane, Saggart, Co Dublin, Bird Avenue, Clonskeagh, Co Dublin, and Donacumpter, Celbridge, Co Kildare.
The accounts say loans for the three sites are all on demand. The company is not related to Durkan New Homes, which is based in Ranelagh.
"A pick-up in trade will be dependent on a period of economic stability domestically and internationally, and a gradual emergence of demand for product," it said.
"The lack of demand and radically reduced value of finished property has seriously eroded the value of the development land," the company stated.
The auditors to the company, based on York Road, Dun Laoghaire, stated it is hard to value the property assets as there is "no active market" to base prices on. The company's accumulated losses carried forward were €141.4m.
"A business plan has been submitted to NAMA which assumes the loan facilities will stay in place.
"The company is actively engaged with NAMA on the business plan and loan facilities.
"No agreement has been reached between the directors and NAMA to date,'' it added.