Tipperary Water owner books 30pc property gain
TIPPERARY Water owner M&J Gleeson booked a 30pc gain on its property portfolio last year after revaluing the assets for the first time since 1972.
The exercise, which implies an annual appreciation rate of less than 1pc, contributed €14m to Gleeson's bottom-line profits in the year to June 2009.
The figures are revealed in accounts for the family-owned firm, whose drinks and distribution portfolio includes brands like Finches, Freeze Pops and Country Spring as well as several beers, spirits and wines.
The property boost came as Gleeson's turnover dipped €20m to €230m, marking the first fall since the group was founded in the '60s. Pretax profits for the year were down 10pc at €2.7m.
"The principle risks and uncertainties facing the group relate to reduced sales and profits arising in the current economic climate," Gleeson's directors said in a report signed off last October.
The lower pretax profits were more than made up for by the property gain, which put 2009's total recognised gains at €17.2m against 2008's €150,000.
Notes to the accounts show the revaluation was carried out in September 2009, increasing the firm's total property assets of €61,535,000 and boosting total fixed assets to €124m.