PJ Walls records €67m pre-tax loss
Construction and property development group PJ Walls which hived off its profitable construction arm this week has recorded pre-tax losses of €67.9m in 2013.
New accounts show that the indebted PJ Walls Holdings (PJWH) recorded the losses after writing down the value of its assets by €67m.
Revenues at the group reduced by 35pc from €144.35m to €93.57m in 2013.
Earlier this week, it was confirmed that PJWH has spun off its profitable building business, Walls Construction, from its holding company in a €10m-plus Management Buyout (MBO) deal partially backed by some of its shareholders.
Separate accounts lodged by Walls Construction Ltd for 2013 show that the firm accounted for €83m of the group's revenues and recorded an operating profit of €1m.
The holding firm had bank borrowings of €110.47m at the end of 2013 and a note attached confirms that the group entered into an arrangement to extend its financing facilities until November 2016.
The note states that "as part of this arrangement, an asset realisation strategy has been agreed that required the disposal as part of the group's development assets". In February 2013, PJWH disposed of its UK construction operations.
This resulted in the numbers employed reducing from 334 to 259 with staff costs reducing from €21.1m to €13.6m.
PJWH recorded a profit of €677,830 on its UK business sale.
The business was sold for £3.3m and the business was sold to the business's management team.
PJWH recorded an operating loss of €2.18m before the €67m write-down was taken into account. PJWH had a shareholders' deficit of €61.89m.
The group's cash plummeted from €21.3m to €2m.