Cotter's Park Developments doubles profit

Developer Michael Cotter

Gordon Deegan

A fourfold increase in revenues from house sales last year contributed to pre-tax profits more than doubling to €5.99m at Michael Cotter's Park Developments.

New figures show that Park Developments (Dublin) Ltd recorded the pre-tax profit increase last year after revenues increased by 147pc, from €18.43m to €45.69m.

Park Developments is best known as the company behind the Park commercial development in Carrickmines, Dublin.

The figures show that the company benefited from the recovery in the housing market in the capital last year, with revenues from residential homes increasing from €12m to €36m.

The company also took advantage of the rise in land prices and recorded land sales totalling €8.3m last year - compared to €89,091 under that heading in 2015.

The company recorded commercial sales of €4m in 2015 and no sales under that heading in 2016.

The firm did record revenues of €1.28m for contracting industrial work last year.

The company also recorded other income of €6.6m and this included income of €2.6m from US investments.

The company incurred an exceptional cost of €7.86m and this related to the firm making a capital contribution of €7.86m to Killiney Estates Ltd. The amount is not repayable to Park Developments (Dublin) Ltd.

A note attached to the accounts states that funding arrangements up to December 2018 have been agreed with the National Asset Management Agency.

The note states that the funds are dependent on the group achieving specified financial performance metrics, primarily in relation to cash generated from operations and from a programme of asset development and asset disposals.

On market risks facing the company, the directors state that "high transactional activity has improved in recent months, despite some uncertainty within the market.

"High costs of borrowing and a difficulty in securing attractive lending terms continue to hamper investor demand".

Six directors served during the year and directors' remuneration increased to €793,275 .

The company had shareholder funds of €73.28m and this included €65.28m in accumulated profits.

The company's cash pile increased from €1.7m to €5.23m.