Ballymore’s UK property arm posted profit of €587m in 2016

Boost in profits for Irish developer was due in part to a revaluation of investment properties

Sean Mulryan, the chairman and group chief executive of Ballymore. Photograph: Alan Betson

Sean Mulryan, the chairman and group chief executive of Ballymore. Photograph: Alan Betson

 

Sean Mulryan’s Ballymore Properties recorded a pre-tax profit of £518 million (€587 million) at its UK arm following a revaluation of some of the group’s investment properties, a gain arising on the settlement of financial obligations, and forfeited deposits.

Recently filed accounts for Ballymore Limited and Subsidiaries show that the group’s turnover increased by almost 25 per cent to £692.7 million for the year ended March 31st, 2017.

Its gross profit was £122.9 million, which was ultimately boosted following the revaluation, the gain from the settlement and the forfeited deposits.

Ongoing projects at the Irish-owned company include the London City Island and Embassy Gardens project as well as a raft of other residential and commercial developments.

A directors note in the accounts flagged that good progress had been made on construction of the Embassy Gardens project, Providence Tower and London City Island phase 1, with the majority of residential and commercial unit sales in those developments completed in the 2016/2017 financial year.

The company flagged Brexit as posing “some uncertainty” for the business but ultimately said “the directors still believe that the economic fundamentals are positive for London”.

Exiting Nama

Funding for Ballymore’s projects was largely coming from working capital following the exit of the wider Ballymore group from Nama during the year, after it repaid around €3.2 billion to the State loans agency.

While the majority of the UK company’s turnover came from the sale of properties and construction income – some €689.5 million – rental income and management fees generated £3.2 million.

At the year end, Ballymore had £128 million in cash while trade creditors were owed more than £265 million.

Following a restructuring of the group in the financial year, the ownership of Ballymore Limited and Subsidiaries transferred from Ballymore Properties Holdings Ltd to a Jersey-incorporated company called Trapol Ltd.

Its ultimate parent undertaking is Ballymore Properties Unlimited, which is incorporated in Ireland.

Ballymore group is involved in a number of major projects in Ireland, the UK and Europe.