Towercom Holdings reduces loss to €4.3m as turnover rises
TOWERCOM Holdings, the company backed by clients of Goodbody Stockbrokers that acquired Eircom's mast business in 2007 for €155m, rang up a €4.3m loss in 2009, narrowing the loss of just over €6m it reported in 2008, according to the latest set of accounts for the business filed at the Companies Office.
Towercom is owned by shareholders including US fund manager Plainfield Asset Management and Dublin-based Threefold Project Management. Threefold was established by Tony Killarney, Niall Savage and Tom Scanlon.
The accounts for Towercom note that the retained loss at the company stood at almost €18m at the end of 2009, while turnover for the period rose 10.2pc to €10.6m.
Towercom generates the bulk of its revenue from Eircom and Vodafone, with the latter accounting for 23pc of the figure in 2009.
The accounts add that the risk of revenue concentration is mitigated by the fact that a majority of revenue is derived from "core high sites" that are "practically irreplaceable in today's planning and infrastructure development environment".
The accounts also note that Towercom settled a warranty claim with Eircom in the commercial court last year.
Eircom, which had given certain warranties to Towercom at the time of the sale of the mast portfolio, is understood to have paid up to €9m to settle the case with the company. Towercom had claimed that Eircom had breached the warranties and had initially sought €22m in damages. Eircom denied liability.
"The matter has now settled satisfactorily and implementation of the settlement agreement is under way," note the accounts, which were signed off early this month.
Towercom's accounts also show that the group had total borrowings of €144.3m at the end of 2009, up from €141.7m in 2008.
That comprised €108.4m in loans and €37.9m in long-term notes, while there was just over €2m in deferred finance costs. The company paid €6.56m in interest in 2009. More than €102m of the total debt is repayable by 2014.