Losses soar at Noonan despite revenue increase


Pre-tax losses at Dublin-based house builders Noonan Developments jumped to €6.9m last year. Stock Image: Bloomberg
Pre-tax losses at Dublin-based house builders Noonan Developments jumped to €6.9m last year. Stock Image: Bloomberg

Pre-tax losses at Dublin-based house builders Noonan Developments jumped to €6.9m last year.

The almost seven-fold rise in pre-tax losses at the group followed the business increasing its revenues three-fold to €12.9m.

The new accounts show that pre-tax losses at Noonan Group Holdings Ltd increased by 539pc, going from €1.08m to €6.9m, in the 12 months to the end of September last.

The group’s bank loans were transferred to Nama in October 2010. “Since then, the group has focused on achieving an agreed property strategy which has been approved by Nama,” the director said.

The directors’ report added that the group has successfully reduced its bank debt from €41.9m in 2010 to €27.76m in September 2017.

The directors said that the group “expects to increase production in the coming year and with a good product, strong geographic spread and with a well-established reputation built on quality, we are positioned to take advantage of any further market improvements.”

The directors report that the group’s housing subsidiaries completed 44 house sales in Ireland with revenues of €12.89m generating an operating loss of €6.15m.

The directors said “the comparative figures for the previous year were 14 sales in Ireland with a turnover of €3.93m and an operating loss of €439,166”.

At the height of the building boom in 2006, the Noonan Group recorded revenues of €31m with its then seven directors sharing remuneration of €4.29m.

However, the collapse in the building industry resulted in the group selling just two houses, generating revenues of €325,991, in 2013. 

This followed the group recording seven house sales in 2012 with revenues totalling €1.17m. On the 2017 performance, the directors state: “During year, we achieved an increased level of house construction as there were continued signs of recovery in the Irish new homes sector.” 

Accumulated losses at the group last year increased from €6.46m to €13.53m. The group’s cash pile during the year reduced from €2.87m to €784,808.

The accounts show that the group last year paid €7m towards the repayment of a short-term loan and this followed a payment of €3.2m under the same heading in 2015.

The three directors in the company are listed as Neil Noonan, Kieran Noonan and Barry Cahill. Directors’ remuneration last year increased from €214,320 to €280,210.

Irish Independent

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