The National Asset Management Agency (Nama) has approved a business plan for Bovale Developments, a new report has confirmed.

According to an auditor’s report for the company recently lodged with the Companies Office, Bovale Developments incurred losses in the 12 months to the end of June 30th last year.

This followed losses in the year to the end of June 2010. The extent of the losses are not known as Bovale Developments, controlled by Michael and Tom Bailey, is an unlimited company and is not required to file annual accounts.

However, a three-page auditor’s report by the firm’s auditors, McGrath Co, confirms that the liabilities of the company – established in 1983 – exceeded the assets of the company on June 30th last.

They state that arising from the approval by Nama of the firm’s business plan, directors Michael and Tom Bailey “are confident of continuing support for the foreseeable future”.

However, McGrath Co highlight the valuation put by Bovale Developments on its property assets.

“The values ultimately realised from property assets could be materially different from their balance sheet carrying amounts.”