Mulryan-owned helicopter firm losing €400,000
Published 11/02/2010 | 05:00
Property developer Sean Mulryan and his fellow executives may have to forego their helicopter use in the economic slump.
Mulryan-owned firm, Arkiva Ltd, which provides "transport services" to his Ballymore group of companies, is losing more than €400,000 a year and will need to hold an extraordinary general meeting to deal with an excess of liabilities over assets, new accounts show.
The accounts for Arkiva show that other Ballymore companies paid more than €1m in lease fees to Arkiva for helicopter services during the year to March 31. However, due to an impairment of its helicopter assets and interest payments, the company posted an after-tax loss of €409,454. The firm had bank borrowings of €7.3m.
Media reports have previously suggested Mr Mulryan's companies own an Augusta Westland helicopter -- however, the accounts do not mention what type of assets Arkiva has.
Like other developers, Roscommon-born Mr Mulryan is facing financial challenges. A new set of accounts for his Ballymore Land Ltd show it made a loss of €13.3m, after taking an impairment charge of €9.9m on the value of its developments.
This company had bank loans of €61.4m and "continued financial support of its bank" was thought necessary for it to remain a going concern.
It also had a shareholder's deficit of €13.8m, up from just €2,000 the previous year.
Valuing the company's properties is subject to uncertainty, state the accounts, in the light of current market conditions where property assets are "relatively illiquid".
Mr Mulryan has arguably the largest selection of assets of any Irish developer, with land banks in Ireland, the UK and in central and eastern Europe.
The Irish developer owns a large amount of land and property in the east end of London where the Olympics will be staged in 2012.