Owners of Rathdowney outlet reveal €12m losses in two years
THE company behind the Rathdowney Shopping Outlet lost another €5.4m in the year to March 2009, bringing the venture's losses to more than €12m over two years.
The stark figures are revealed in accounts just filed for AWG Outlets (Rathdowney), which admitted it had to "revise" letting terms for some of its retail tenants, leading to lower rental income.
The latest losses also include a €4.6m revaluation hit, as the firm wiped 32pc off the book value of its shopping centre asset "in line with general market sentiment".
The 2009 losses left Rathdowney with a shareholders' deficit of €10.3m at the end of the financial year, but the firm got a boost from a 12-month extension to its banking facilities that was granted in November 2009.
"This will allow time to consider the value-adding initiatives available to the directors prior to engaging with further discussions with the bank in the coming months, with a view to securing the extension of funding," the directors said.
They added that the 2009 extension was secured after one of Rathdowney's shareholders agreed to provide funding to meet interest repayments for the extra year "as may be necessary".
Commenting on the 2009 trading, which saw Rathdowney's income fall from €798,000 to €643,000, the directors noted the difficult trading environment had made "attracting and retaining quality tenants very challenging".
The firm said it was hoping progress with the N8 motorway link would "increase potential footfall", while directors also pointed to the net operating profit of €127,685 achieved in 2009 as a "positive".