ONCE one of the capital's biggest house builders, Albany Homes is dependent on Bank of Ireland for its survival after it racked up losses of more than €33.7m in the 12 months to the end of September 2008.
Controlled by developer David Daly, the fortunes of Albany Homes, which also operates a subsidiary in the UK, have deteriorated with the implosion of the property bubble. In the 12 months to the end of September 2006, Albany Homes had reported a pre-tax profit of €16.2m.
That had come on top of a €29m profit the previous year. Turnover in 2008 dropped to €96m from €147m in 2007, while in 2008 it paid nearly €9m in interest charges.
In new accounts just filed for the company, its auditors, Dublin-based BBT, note that loans extended to Albany Homes and drawn down by the company mature within 12 months of the balance sheet date of September 2008.
The accounts note that at the end of September 2008, the Albany Homes group had outstanding bank loans and overdrafts amounting to more than €128m. That was down on the €184m it owed at the end of the previous financial year.
Bank of Ireland also holds a debenture incorporating a charge over all the sites and work in progress of the company and has an assignment over building licences in relation to lands at Kinsealy in north Co Dublin, and at nearby lands called Drinan. Albany had land and work in progress that it valued at €229.6m at the end of September 2008.