Celtic Helicopters seeks investment

Celtic Helicopters, the company majority-owned by Ciarán Haughey, is making continuing losses and is seeking new investment.

In its latest annual accounts, for the year to the end of March 2006, the company says it has "sustained substantial losses for a number of years".

"The directors are taking action to both restore the company to profitability and to raise additional equity capital. They believe the company will continue as a going concern." The abridged financial accounts do not give a loss figure for the year but the company's accumulated losses were €795,038 at year's end, compared to accumulated profits of €44,894 a year earlier.

The company has been the subject of inquiries from the Moriarty tribunal, an authorised officer, and the Revenue Commissioners over recent years.

The "final financial implications of these matters for the company cannot be ascertained with certainty", the company states in the accounts. "The directors believe that adequate provision has been made for all of the company's taxation liabilities."

The accounts also state that the directors believe any further liabilities arising from these matters "can be financed out of future cash flows". The accounts note that "certain assessments" raised by the Revenue have been settled. In the period after March 2006, the company made a settlement of €333,989 in underdeclared VAT and €355,956 in interest and penalties.

The accounts state that the company's subsidiary, Celtic Helicopters Maintenance & Services Ltd, recorded a loss after tax of €19,754 for the year to end March 2006, and had net liabilities of €164,839 at that date. The company's two shareholder/directors, Mr Haughey and John Barnicle, have personally guaranteed the parent company's loans, according to the accounts.