Losses at Imagine Communications more than €10m

Losses widened at Irish wireless broadband company Imagine Communications last year to €10.2 million from €8.87 million in 2013.

According to recently filed accounts, the Dublin-headquartered firm, which was founded by telecoms entrepreneur Seán Bolger in 1993, saw turnover decline from €38.9 million to €31.6 million over the 12 months under review.

Administrative expenses amounted to €19 million, as against €21.6 million a year earlier while the group’s cost of sales fell to €20.7 million from €24.7 million in 2013.

Writedown

The latest accounts shows company directors decided to take a writedown of €973,000 on wireless inventories last year.

Imagine, which was the first company to bring WiMax wireless technology to Ireland, said it continues to pursue its plan to deploy a national broadband network using a 4G technology known as TD-LTE. The group has agreed €50 million funding for the commercial roll-out with an international infrastructure fund, it said.

The company has substantial business operations across much of Europe including Ireland, the UK, Norway, Austria, the Netherlands as well as in the US. Its brands include Gaelic Telecom and Cinergi. The group's spectrum holdings have been independently valued at more than €100 million.

Cash injection

Imagine said that since the end of 2014 it had received a cash injection of €3 million and had reduced group debts by €5 million primarily as a result of the cancellation of C-Loan stock.

The company said it had 153 employees last year, down from 181 in 2013. Staff costs, including wages and pension contributions, totalled €5.9 million, down from €6.59 million in 2013. During 2014, the firm purchased consultancy services from companies controlled by Imagine directors, including services totalling €350,000 from Mr Bolger’s Imagine Ventures Ltd, formerly known as Access Telecom.