Haughey reorganises operations at Celtic Helicopters as losses rise
Ciaran Haughey's Celtic Helicopters has reorganised its operations in order to ensure the firm's future viability as losses mount to €1.5m.
Accounts covering the year to March 31 show retained losses rising from €615,190 to €1.5m, and there is now a deficit in shareholders' funds of €68,076. The company is ceasing maintenance services and expanding the number of hangars it offers, the accounts say.
"The directors believe that these changes will secure the future viability of the company and accordingly they have prepared the financial statements on a going concern basis,'' the accounts state.
The company is owned by Ciaran Haughey, son of former Taoiseach Charles Haughey, and his business associate John Barnicle. The two men have personally guaranteed the company's loans and overdrafts, but they appear to be relatively modest, according to the accounts. The main liability is €834,000 owed to a related company called Medeva Properties.
The auditors to the firm point out that its net assets are less than its share capital and, as a result, an extraordinary general meeting may have to be held.
The company has a contingent liability relating to an investigation into the company by the Revenue Commissioners, which was triggered by the McCracken Tribunal.
The bills from the Revenue investigation "have been discharged, together with related interest and penalties".
But the accounts state the financial implications of these matters cannot be ascertained for certain. "The directors believe that adequate provision has been made for all the company's tax liabilities."