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Builder Gannon shares €783,000 pay pot with two other directors

ONE of the country's best-known builders, Gerry Gannon, shared a pay pot of €783,135 with two other directors in 2009 as pre-tax losses at Gannon Homes soared.

New accounts filed by Gannon Homes Ltd show pre-tax losses jumped 26pc to €63.4m after the company wrote down the value of its stock and property investments by €55.9m.

The aggregate pay shared by Mr Gannon with directors Aidan Kenny and Michael Anglim was 54pc down on the €1.73m the three shared in 2008.

The firm's bank loans totalling €196.7m provided by Allied Irish Banks, Anglo Irish Bank and Irish Nationwide Building Society have been transferred to NAMA.

The company's results state that the directors "are confident that NAMA will continue to support these plans to enable the company maximise asset value".

In their report, Mr Gannon and his fellow directors also ruled out a fire-sale of all of the company's assets.

"The directors do not feel it is wise, nor is it their intention, to sell all of the stocks in the currently depressed market. It is expected with the support of NAMA that future values will be significantly higher when a positive market sentiment returns," the report adds.

They "are confident that a positive market sentiment will return within a two- to five-year period".

A note states that Mr Gannon and his fellow directors have no reason to believe that the loan facilities will not be continued by NAMA.

The notes adds: "The directors are of the opinion that the main bulk of advances will be repayable as and when development projects and completed residential units can be sold to generate cash flow to reduce borrowings."

Earlier this month packaging magnate Michael Smurfit was reported to have paid more than €40m for Mr Gannon's 49pc stake in the K Club. The Gannon Homes Ltd's returns show that Mr Gannon's wife Margaret is listed as a shareholder.

Irish Independent