Markland posts a pre-tax profit of €3.8m for 2010
MARKLAND Holdings, the company owned by developer Sean Mulryan and the family of the late Paddy Kelly, swung into the black during 2010, posting a €3.8m pre-tax profit. That compared with a €10.8m loss a year earlier, accounts filed with the Companies Office show.
The company has also just furnished updated cashflow forecasts to NAMA after submitting a "comprehensive business plan" to the agency last year.
Markland, which owns a swathe of properties across Europe and the United States, said that business had also improved during 2011, as rents it generated on its properties stabilised in 2010 and then began rising. Turnover in 2010 was almost unchanged on 2009, at just under €32.5m. The bulk -- €22.4m -- is generated in mainland Europe, with the rest split between Ireland, the UK and the US.
But Markland still recognised total losses of €31.5m for 2010 as it recorded a €19.5m unrealised loss on the revaluation of some of its property assets and paid €21.4m in interest on its substantial debts.
The recognised loss was down substantially on the €68.2m loss it notched up in 2009. The company had racked up combined losses of €92.5m and had a €4.1m shareholders' deficit at the end of 2010.
The accounts show that Markland's investment property was valued at €378.3m at the end of 2010, down from €397.8m in 2009. The company had €456.7m in net debt at the end of 2010.
Its loans were primarily with Irish Bank Resolution Corporation (formerly Anglo Irish Bank) and Bank of Ireland before being transferred to NAMA. Bank of Ireland has a charge over 47 Citibank branches in New York that were acquired by Markland in 2008 for €60m.
"Markland continues to work with NAMA on a consensual basis to ensure it meets all its future obligations," the company's directors say.
They add that, based on the business plan they submitted to NAMA, they expect the agency's continued support.
Last year, Mr Mulryan agreed a five-year disposal programme with NAMA on properties held by Markland. The firm has already sold one property in Germany.
The directors note that they expect Markland to have returned to operating profit during 2011 and that it will remain profitable this year "in the absence of further impairments".
The directors were paid a total of €474,000 in 2010, down from €840,000 in 2009. Mr Kelly died early last year.