Gannon firm confident it can repay NAMA €30.5m
PROPERTY baron Gerry Gannon (pictured) is confident that the £24.9m (€30.5m) loans owed to NAMA by his business's UK arm will be repaid.
According to accounts just filed by Mr Gannon's London-based Gannon Homes (UK) Ltd, profits increased 17-fold to £359,929 in the 12 months to the end of December 2011.
A note attached to the accounts filed to Companies House in the UK states that "the directors are of the opinion that all loans can be repaid as and when the market returns to enable the completed units to be sold".
The note continues: "In the meantime, the directors are confident that rental income and income from property management services provided by the company will generate sufficient positive cash-flow to enable the company to meet a substantial portion of its funding requirements."
The accounts disclose that during 2010, the company's loans were transferred by the Irish Bank Resolution Corporation to NAMA and bank loans outstanding at the end of 2011 totalled £24.9m.
The most recent accounts for Mr Gannon's Irish-based Gannon Homes Ltd to the end of December 2009 show that €196.7m in loans provided by AIB, Anglo Irish Bank and Irish Nationwide Building Society have been transferred to NAMA.
The accounts give a book value of stocks and works in progress of £18.3m.
A note attached to the accounts states that the directors "anticipate that the stock of properties will, in the medium term, realise more than their current carrying value and that NAMA will continue to support the company until this is achieved."
Mr Gannon has advanced loans to the firm and was owed £2m at the end of 2011.