Shovlin's firm insists it is viable despite €7.5m deficit
PADDY Shovlin's embattled Taleside Developments has insisted it should be considered a "going concern" despite being stricken off the companies' register and nursing a €7.5m shareholders' deficit.
Described as a "property development and investment vehicle", Taleside is one of a network of companies controlled by Mr Shovlin and brothers Tony and Pat Fitzpatrick, collectively best known for developing Sandyford's Beacon quarter.
Taleside was once a lucrative venture for the trio, gifting them combined pension contributions of €1m in both 2006 and 2007, as we as six-figure payments in fees.
The latest accounts, however, show directors' emoluments shrank from €340,000 in the year ended April 2008 to zero in the most recent year, as the company plunged into the red.
Taleside lost almost €26.5m in the year to April 2009 after writing €15.3m off its investment portfolio and taking a €10.7m hit on shares in its parent Neysos Ltd.
The €26.5m hit wiped out Taleside's accumulated profits of €19m and left the company nursing a shareholders' deficit of almost €7.5m at the end of the year.
Companies' whose liabilities exceed their assets typically make a declaration as to why they should be considered a going concern; however, Taleside's latest accounts include no comments on the shortfall and Mr Shovlin declined to respond to queries by email.
The filings do show that the bulk of its creditors are group companies who are owed almost €38m of the group's €47.5m liabilities, potentially explaining why the company believes it can continue to trade.
The accounts also note that Taleside was stricken from the companies' register in February, for reasons which are not detailed.
In a statement signed on August 4, Taleside's directors say they intend to make an application to be restored on the register and "consider the application will succeed".
"If the company is not successful in its application for restoration to the register, it will not be able to continue in existence," Taleside's auditors noted as they placed an "emphasis of matter" on the filings.
Some €12m of the €15m writedowns relate to a loan advanced to a Maltese company that bought an investment property in the UK -- Mr Shovlin declined to elaborate on what the UK investment was or what the other €3m writedown was for.