Loss of £99m at developer O'Flynn's UK property firm
Published 22/12/2012 | 05:00
A property firm controlled by high-profile Cork developer Michael O'Flynn last year incurred losses of £99.69m (€122m).
New accounts filed in error by Mr O'Flynn's unlimited Tiger Developments show that the firm incurred the loss after impairments on assets and inter-company loans.
The figures show that the five people employed directly by the firm received an aggregate £519,944 in salaries or, on average, more than £100,000 each.
Last month, Fine Gael Junior Minister Lucinda Creighton apologised in the High Court to Mr O'Flynn for statements made by her in which, he alleged, she defamed him.
Ms Creighton also made a contribution to Mr O'Flynn's legal costs in the case that arose from Ms Creighton's speech on standards in public life to the MacGill Summer School.
Tiger Developments has "a major asset portfolio in the UK" and as the firm is unlimited, it is not required to publish annual accounts.
However, O'Flynn Construction – which has built the Elysian Tower in Cork – last night admitted the accounts were filed in error with the Companies Office.
The accounts provide a rare insight into the finances of Mr O'Flynn's property business as his O'Flynn Construction is also unlimited.
The loss at Tiger Developments arises from a write-off of £89.6m concerning the non-recoverability of inter-company balances and £6.5m in a property writedown.
A spokesman for the O'Flynn Group said yesterday: "The accounts filed represent one small part of the Tiger Development Group which comprises more than 60 different entities."
He added: "The accounts, which were filed in error, represent just one of the companies in the Tiger Group without its subsidiaries. The losses recorded are derived from an inter-company provision which are eliminated within the consolidated accounts.
"The overall health of the O'Flynn Group is very positive."
The figures show the firm's revenues increased marginally from £1.86m to £1.9m, with the directors stating that "the company has not engaged in any significant property transactions for the year and has engaged on a strategy of working on its existing property portfolio in advancing planning applications and other such activities designed to maximise the value of assets held".