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Dairygold spin-off Reox Holdings chalks up losses of €30.8m in 2010

Property and foods business Reox Holdings lost €30.8m last year, according to accounts filed with the Companies Registration Office.

The company was spun out of Dairygold in 2006 with a view to a stock market listing.

Now a note to the 2010 accounts shows that €12.5m of bank debt falling due this year will have to be repaid from the proceeds of asset sales.

To that end Reox has signed heads of agreement to sell property worth €43m back to Dairygold, €17m in cash with the balance deducted from money owed to the former parent.

Under the deal agreed with Dairygold the former parent will replace existing interest- bearing loans to Reox with a new interest-free loan. That deal is subject to approval from both companies' banks. If it goes ahead the new loan will be repaid in instalments from December 2012.

Last year's huge loss compares with a reported loss of just €2.2m in the nine months to the end of June 2009. Turnover fell from €131m to €20.5m over the same period.

Reox was created in 2006 when Dairygold spun off Alchemy Properties, a portfolio of property assets, as well as Breo Foods and 4Home superstores.

The dramatic decline in turnover came after it sold its Breo Foods unit to Kerry Group for €140m in 2009. It also handed what remained of the retail business back to Dairygold after a major rationalisation programme that saw a number of stores closed.

It means Reox is now mostly comprised of the Alchemy Properties unit and a Dutch prepared salads business.

Shares in Reox change hands rarely and in privately negotiated deals on the so called "grey market".

Indo Business