Ballymore's UK profits down as revenues soar
Pre-tax profits at the UK arm of Sean Mulryan's Ballymore Developments last year decreased by 37pc to £88.3m (€103.4m) as revenues soared.
New accounts just filed by Ballymore Properties Holdings show that the business recorded the £88.3m pre-tax profit as revenues increased more than five fold, going from £99.29m to £555.16m (€650m) in the 12 months to the end of March 2016.
The directors state that the sharp increase in revenues reflects a significant increase in the sales of residential units in the year.
Ballymore founder, Sean Mulryan, recently circulated a note to employees stating that the business had exited Nama having repaid €3.2bn in gross debt to the State agency since 2010.
Mr Mulryan described the debt repayments of €3.6bn over a six-year period as "a staggering achievement".
The report attached to the UK firm's results for the 12 months to the end of March state that, during the year, the wider Ballymore group repaid £675m (€790m) of Nama debt.
The £141.8m (€166m) pre-tax profit from the prior year arose chiefly from a £50m profit that came from restructuring of the group's interest in a joint arrangement.
The lower profit last year is also explained by £32.5m (€38m) paid in interest charges, compared to £1.9m under that heading in the prior year.
Addressing the issue of Brexit in their report, the directors state that while some uncertainty is expected in markets following the Brexit referendum result, they believe that the economic fundamentals are positive for London.
The current financial year looks to be even more buoyant for the Ballymore UK firm. The directors state that sales completions of its Embassy Gardens Phase 1, Providence Tower and London City Island Phase 1 have commenced and the vast majority of residential and commercial unit sales in these three developments are forecast to complete in the 2017/18 financial year.
The accounts disclose that at the end of March, the group's shareholder deficit totalled £514m (€602m), while its total debt amounted to £729.7m (€854m).