THE Dublin-based home builder Noonan Developments made a more than €11m exceptional gain last year, as it concluded a debt arrangement on much better terms than it originally anticipated, newly filed accounts show.
The group, whose managing director is Kieran Noonan, saw its bank loans transferred to Nama in 2010, and it subsequently worked with the bad bank on a strategy for the building firm.
The accounts noted that a new agreement with the firm’s bankers came into effect last summer, and the company had no bank debt at the end of last September. Its bankers are Bank of Ireland and AIB.
The accounts showed that the building company owed just over €17m to credit institutions at the end of September 2018.
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Noonan Developments said that it invested “significant effort and resources” to satisfy a debt agreement that was entered into in 2010.
It said that during the 2019 financial year, which ended last September, the debt arrangement was “mutually concluded on, with a much more favourable outcome than originally anticipated”. “This resulted in an accounting gain of €11.04m for the company,” it added.
Stripping out the exceptional gain, the group’s operating profit in the 12 months to the end of last September almost halved to €2m, as turnover fell to €13.8m, from €18.6m in the previous financial year.
The directors noted in the accounts that its subsidiaries completed 57 units in Ireland during its last financial year, with that activity accounting for all the group’s revenue and operating profit. In the previous financial year, it completed 61 units.
“During the year, there were continued signs of recovery in the Irish new homes sector,” the directors said.
“The group had a moderately reduced level of production during the year, but with a good product [and a] strong geographic spread,” they added.
The directors said they expected continued improvement in the group’s trading performance in the current financial year.
The firm has built developments at locations around Dublin, including Bartra Rock in Dalkey.
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