McEvaddy firm sustains pre-tax loss of almost €657,000
THE aircraft leasing and parts business owned by entrepreneurs Des and Ulick McEvaddy incurred a pre-tax loss of almost €657,000 in 2012 thanks largely to loan losses at a healthcare subsidiary.
Omega Aviation Services Ltd says there was a significant amount of doubt as to whether it would recover the intercompany loan with Naas Primary Care Campus.
At the end of 2012, the balance owing on the loan was €12.1m, and accounts filed with the companies office suggested that may not be repaid.
" At the year-end, a significant level of doubt remained surrounding the recoverability of the intercompany loan with Naas Primary Campus Limited," the accounts state.
"In a prudent move, the directors have made a further impairment provision against the loan in the amount of €1,930,736, thus increasing the amount of the impairment to €12,093,804 at the year-end."
The accounts noted that excluding the impairment of the loan, the company traded successfully with a profit before the impairment of €1.27m.
The company was set up in 1987 by the brothers, with 61-year-old Ulick and his 60-year-old brother Des the sole directors.
Ulick was mired in controversy in 2007 after then Tanaiste Mary Harney and Finance Minister Charlie McCreevy accepted the use of a South of France villa linked to the businessman. He was also a high-profile critic of the Lisbon Treaty
The accounts figures show that 80pc or €15.7m of the group's revenues stem from aircraft leasing and sale of aircraft parts and engines, while health-care-related income accounted for 17pc or €3.3m of sales through an income of €1.2m from a diagnostic medical centre and €2.04m from pharmacy sales.
A further €522,949 is generated through rental income and €135,614 in property management charges.
According to information in the directors' report "as was the case in the previous period, the loss incurred is directly as a result of a further impairment of the intercompany loan balance with the company's subsidiary, Naas Primary Care Campus Ltd".