Imagine's accumulated losses top €30m despite increase in turnover
Imagine Communications, the telecoms company headed by Sean Bolger, posted a €9.2m loss in 2008, adding to an €8.8m loss recorded in 2007, new accounts show. Accumulated losses at the company stood at €30.8m at the end of 2008.
Turnover at the group rose to €94m from €68.7m the previous year. Revenue from ongoing operations was 66pc higher at €82.5m, while turnover from acquisitions dropped from €18.8m to €11.4m. In 2008, Imagine acquired Irish Broadband from diversified utility NTR. The purchase price of €40m was paid for in shares, with NTR and investor Kilsaran Concrete taking a combined 25pc stake in Imagine. The two firms also committed a further €7m in funding to Imagine.
Imagine has acquired brands including Cinergi and Gaelic Telecom in the past.
Imagine also incurred an operating loss of almost €8m, with nearly €7m of that related to ongoing operations. That compared to an operating loss from ongoing operations of €5.3m in 2007. Imagine's net debt also rose during 2008 to €6.1m from €5.2m. Much of the debt is related to finance lease agreements. Its wage bill nearly doubled in 2008 to €11.4m, while directors' emoluments totalled €259,000.
Imagine employs more than 350 people and last autumn announced plans to add a further 200 to its payroll as it rolls out a €100m WiMax network in Ireland. The project is backed by Intel and Motorola. Construction of the network should be complete within two years.
Imagine got a combined €2m cash injection recently from two shareholders -- NTR and London-based equity firm DFJ Esprit Capital.