Michael Cotter's Park Developments cuts pre-tax losses as revenues surge
Published 11/12/2013 | 23:31
THE Irish business of developer Michael Cotter saw a sharp fall in pre-tax losses last year as the company's revenues surged.
Park Developments (Dublin) Ltd cut its losses from €38.4m to €844,300 after revenues across Ireland and the UK jumped 26pc to €86.7m.
The chief factor behind the hefty loss in 2011 was a combined €30.6m writedown made up of €25.7m written down against stocks and work in progress and a €4.9m writedown in development land. Last year the firm recorded writedowns of €9.3m in investments and €1m in land.
The figures show that the firm, which has had its loans transferred to the National Asset Management Agency (NAMA), paid a dividend of €278,795 last year to its immediate parent company.
The filings also show that the firm's Irish-based business doubled with revenues increasing from €32m to €64.4m as the firm's UK business declined by 38pc from €36m to €22m.
The business didn't engage in any property development last year after generating €900,000 under that heading in 2011.
The figures show that the largest proportion of the firm's revenues last year related to "residential--contracting" which rose from €22.6m to €47.6m. Commercial sales were also a factor in the business's improved performance, more than doubling from €6.1m to €14.65m.
Park Developments, which is best known as the company behind the Park commercial development in Carrickmines, Dublin, had shareholder funds last year of €60.87m including €52.8m in accumulated profits.
The company owed €369.8m to its parent company, Gansu, and connected firms, while at year end the firm was owed €373.7m by group companies.
A note attached to the accounts said directors of the Gansu Group have agreed funding arrangements with a NAMA company.
"The group continues to manage its business and pay its liabilities as they fall due, including the servicing of interest on all of the group external bank facilities.
"The cash flow presumptions, which include a number of assumptions in relation to trading performance and revenue, show that the group will be able to continue to discharge all liabilities as they fall due."
The filings show that the firm's six directors, including Mr Cotter, received an aggregate remuneration last year of €519,200 -- a 46pc drop on the remuneration received in 2011.