Park Developemnts slashes losses as revenues double

A doubling of developer Michael Cotter’s Park Developments’ Irish revenue last year led to pre-tax losses narrowing sharply to €844,300.

Figures show that Park Developments (Dublin) Ltd reduced its losses from €38.4m to €844,300 after revenues across Ireland and the UK increased by 26% from €68.6m to €86.7m in the 12 months to the end of December last.

The chief factor behind the hefty loss in 2011 was a combined €30.6m write-down made up of €25.7m written down against stocks and work in progress and a €4.9m write-down in development land.

Last year, the firm recorded a write-down of €9.3m in investments and a €1m write-down in land. The figures show that the firm — that has had its loans transferred to Nama — paid a dividend of €278,795 last year to its immediate parent company.

The filings show that the firm’s Irish-based business rebounded last year after the 2011 accounts showed that a majority of the company’s work took place in the UK — accounting for 53% of revenues that year.

The figures for 2012 show the firm’s Irish business doubled with revenues increasing from €32m to €64.4m as its UK business fell by 38% from €36m to €22m.

The filings show that the business didn’t engage in any property development last year after generating €900,000 under that heading in 2011. The figures show that the largest proportion of the firm’s revenues last year related to ‘residential contracting’ increasing from €22.6m to €47.6m with commercial sales also a factor in the business’s improved performance — more than doubling from €6.1m to €14.65m.

Park Developments, best known as the company behind the Park commercial development in Carrickmines, Dublin, had shareholder funds last year of €60.87m, with €52.8m in accumulated profits.

The company owed €369.8m to its parent company, Gansu and connected firms, while at year end, the firm was owed €373.7m by group companies.

In a note attached to the accounts, it states that the directors of the Gansu Group have agreed funding arrangements with a Nama group entity, which is subject to certain terms and conditions.

The note adds: “The group continues to manage its business and pay its liabilities as they fall due, including the servicing of interest on all of the group external bank facilities. The cash-flow presumptions, which include a number of assumptions in relation to trading performance and revenue show that the group will be able to continue to discharge all liabilities as they fall due.”

The note states that the group’s loan facilities are secured against group assets through a facility dated through to Mar 28, 2018.

The firm’s directors’ report states that Gansu’s business plan has been approved by Nama. Source: The Irish Examiner.