'Dragon' predicts Smarthomes will return to profit
One of RTE's 'Dragons', Sean Gallagher, said yesterday that he expects Smarthomes Ltd to return to profit in the next 12 to 18 months.
Mr Gallagher was commenting on new returns for Smarthomes Ltd for the 12 months to the end of December 2009 last.
The returns show that the Dundalk-based company recorded after-tax losses of almost €500,000.
Co-owner of the firm, Mr Gallagher said: "Notwithstanding the challenges in the economy, Smarthomes is re-inventing itself and in the next three-to-five years, I expect Smarthomes to be bigger and more profitable than it has been."
During the boom Smarthomes recorded revenues in excess of €10m and employed 70 people.
The figures show that the company's after-tax losses last year of €492,292 follow the company recording pre-tax profits of €533,100 only three years ago. The loss last year followed the company sustaining an after-tax loss of €678,016 in 2008.
The abridged accounts show that the company's accumulated loss last year totalled €543,270, while the company's shareholder funds came to €206,732.
Mr Gallagher is one of the investors on RTE's 'Dragons' Den' show and confirmed that he stepped down as managing director of the firm during the year, but remains a shareholder. He said: "I have absolute confidence that Smarthomes will deliver."
Mr Gallagher said that the company is now being led by Derek Roddy and new managing director, Eamon Conway.
Asked to comment on last year's results, Mr Gallagher said: "It is very simple. We are where we are as a company and as a country. I don't do negativity. We all have to be confident for the future."
Mr Gallagher said that the next phase of Smarthomes Ltd's development is concentrating on developing products that will reduce energy consumption in the home through the latest technology. Mr Gallagher said that the company has been carrying out research and development on the products and is very close to bringing the products to market.
The member of the reconstituted FAS board said: "At its height, Smarthomes was providing cabling to 2,500 homes. The company has a great track record in launching new technologies. It has a strong brand."
The accounts show that the company reduced the amounts owed to creditors from €1m to €501,861 last year.