Michael Cox’s Hollybrook New Homes incurred a €24.9 million impairment charge arising from a development site that was rezoned.
New consolidated accounts for Hollybrook New Homes Property Holdings Ltd show a €24.9 million non-cash impairment charge “relating to a development site that was rezoned” contributed to the group posting a pretax loss of €26.7 million for the 12 months to the end of July 2024.
The loss followed a pretax profit of €256,632 in 2023.
The losses came as revenues at the home building group almost doubled from €17.46 million to €33.96 million.
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A note attached to the accounts shows that arising from the rezoning, the directors of the company “are engaged with the Group’s legal team with regard to this rezoning issue and their lenders pursuing strategic options to address the impact of the impairment”.
The accounts were only signed off on March 26th of this year. “At the date of approval of these financial statements, discussions with planning authorities and the lenders are ongoing,” it said.
The note doesn’t provide details as to the location of the site rezoned or its size.
The loss in 2024 resulted in the company having a shareholders’ deficit of €37.29 million.
The directors state that the circumstances of the impairment represent a material difficulty which may cast serious doubt on the company’s ability to continue as a going concern and therefore, it may not unable to realise its assets and discharge its liabilities in the normal course of business.
The note states that however, the directors are confident that shareholder and connected company support will continue to be available for the foreseeable future.
The note states that with this support they are satisfied that the group can continue to manage its business and pay it liabilities as they fall due.
The note adds that the directors believe that the net liability position does not prevent the adoption of the going concern basis in preparation of these financial statements.
The losses for 2024 also include a €1.05 million exceptional cost concerning the “surrender of lease”.
The value of the group’s work in progress or goods to be sold reduced from €118.17 million in 2023 to €84.3 million in 2024.
