Losses accelerate at firm owned by 'Apprentice' star

LOSSES SPIRALLED to €18.6 million in 2007 at the main company owned by motor boss Bill Cullen, star of TV series The Apprentice, due to a sharp fall in sales and a write-off of €13 million owed by his motor distribution firm.

Newly-filed accounts for Glencullen Holdings fell deeper into the red from a pretax loss of €3.6 million the previous year. The 2007 losses were mitigated by a profit of almost €1.4 million from the sale of property by the firm.

Turnover at the Co Dublin-based company fell 31 per cent to €166 million in 2007 from €241 million the previous year after Mr Cullen lost the exclusive rights to distribute Renault in Ireland.

Operating losses increased to €17.5 million at the end of 2007 from a total of €4 million a year earlier.

The company said in the accounts that the motor industry was experiencing “extremely difficult trading conditions” and referred to the 66 per cent drop in new car sales in January 2009.

The directors said that in order to combat the drop in new car sales the company intended “exploring additional sales markets and putting greater focus on the used car market by sourcing high quality used cars from markets available to the company”.

Mr Cullen provided a director’s loan of €19 million to Glencullen during 2007 for the company’s cash flow, the accounts show.

Glencullen’s cash balances fell to €2.8 million at the end of 2007 from a total of €12.8 million a year earlier.

The €13.3 million write-off was attributed to the firm forgiving “a receivable balance” from Glencullen Distributors following a reorganisation of the group.

The accounts show that Glencullen’s stake in the distribution company was transferred in September 2007 to another company, Glenmair, which at the time was owned by Mr Cullen.

The net liabilities of Glencullen Distributors was €1.36 million.

Retained profits at Glencullen Holdings dropped to €16.3 million at the end of 2007 from €33.5 million a year earlier.