Dublin housebuilder records €11m gain after striking deal with bankers

Noonan Group free of bank debt after agreement

Dublin-based builder, the Noonan Group last year recorded an exceptional gain of €11 million after striking a debt deal with its bankers.

New accounts show that Noonan Group Holdings Ltd last year recorded pretax profits of €12.7 million, with the return mainly due to an exceptional €11 million gain from the bank debt deal.

The group agreement with the bank became effective last summer, with directors noting in the accounts that the company was “free of bank debt as at September 30th last”.

At the end of September 2018, the group owed €17 million to credit institutions.

A note attached to the latest accounts states that “in 2010, due to the loss-making position of the company, the group engaged with its bankers to try to achieve an outcome whereby the company’s debt was repaid in full”.

The note adds: “To accomplish these intentions, both parties entered into a debt agreement that included payments, timing of payments and an improved strategic direction.”

The note further adds: “ During the year, the debt arrangement was mutually concluded on, with a much more favourable outcome than originally anticipated.”

The directors state that “this resulted in an accounting gain of €11 million for the company”.

Revenues declined

Revenues at the group declined by 25 per cent from €18.6 million to €13.8 million in the 12 months to the end of September last.

The group recorded an operating profit of €2 million last year before the exceptional gain of €11 million.

The accounts show that group last year spent €6 million on the repayment of a short-term loan.

The directors state that the group’s building subsidiaries completed 57 units last year compared to 61 units completed in the prior year.

As a result of the pre-tax profit of €12.7 million last year, the group’s accumulated losses of €10.5 million became accumulated profits of €2.5 million at the end of September last.

At the end of September 2018, the group owed €440,000 each to directors, Kieran Noonan, Barry Cahill and Neil Noonan and there was no money owed to the directors at the end of September 2019.

Gordon Deegan

Gordon Deegan

Gordon Deegan is a contributor to The Irish Times