Directors 'confident' as NAMA gives approval for Bovale plan
NAMA has approved a business plan for Bovale Developments, a new report has confirmed.
According to an auditor's report for the company recently lodged with the Companies Office, Bovale Developments incurred losses in the 12 months to the end of June 30 last year.
This followed losses in the year to the end of June 2010, but the extent of the losses is not known as Bovale Developments, controlled by Michael and Tom Bailey, is an unlimited company and is not required to file annual accounts.
However, a three-page auditor's report by the firm's auditors, McGrath & Co, confirms the liabilities of the company exceeded assets on June 30 last.
The losses are in contrast to the last publicly known profits recorded by the Dublin-based Bovale Developments, in 2004/03.
The last filed accounts prior to re-registering as an unlimited company show that, over those two years, the Bailey brothers shared remuneration of €19.7m -- or €9.8m each.
The firm recorded pre-tax profits of €69m in 2003.
In 2006, the Roscommon natives made a record €22.17m tax settlement with the Revenue Commissioners that arose from the Flood/Mahon tribunal.
Now, the firm's auditors state that, arising from the approval by NAMA of the firm's business plan, the directors "are confident of continuing support for the foreseeable future".
The auditors state that the financial statements by Bovale Developments draw attention to the risks and uncertainties associated with the valuation of property assets in the current market.
The auditor's report adds: "Property assets are relatively illiquid. The values ultimately realised from property assets could be materially different from their balance sheet carrying amounts.
"Nonetheless, the board of directors has considered the valuation of each of the significant property assets reflected in the financial statements as at June 30th 2011, on the basis of advice from external professional qualified valuers and has adjusted the carrying value of property assets."
The auditors state: "These conditions indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. On the basis of the information outlined, the directors have prepared the financial statements on a going concern basis."