Pre-tax losses at the company that operates shopping destination Kildare Village almost doubled last year to €6.48 million.
According to new accounts filed by Value Retail Dublin Ltd, the firm's pre-tax losses increased sharply as revenues slumped 37 per cent to €9.86 million.
A note attached to the accounts attributes the €5.8 million drop in revenues to Covid-19 enforced closures of the Village during 2020.
Pre-tax losses last year increased by 83.5 per cent from €3.53 million in 2019 to €6.48 million.
The business recorded an operating loss of €105,000 in 2020 and finance costs of €4.8 million, and interest payments of €1.57 million resulted in the pre-tax losses of €6.48 million.
The directors of Value Retail Dublin, whose backers include property giant, Hammerson, state that they determined that the pandemic "will continue to have a significant impact on the company's business".
They state that they will “monitor the situation constantly and take any necessary actions to minimise further impacts of Covid-19”.
A note attached to the accounts states that Kildare Village was closed in line with Covid 19 restrictions for certain periods in 2020, and also during the early months of 2021.
“A number of initiatives were identified and implemented which produced unbudgeted income during periods of closure, and could deliver meaningful incremental sales in the future once the Covid-19 pandemic recedes,” it says.
The directors state that taking the impact of the Covid-19 pandemic into account, they “are satisfied with the results for the year and are confident about the company’s future prospects”.
Talks with brands
The directors further state that the company “is in discussion with further brands wishing to trade from the Village and commercialisation and trading progress is in line with expectations for this stage in its development”.
The company’s licence fee income last year reduced by 50 per cent from €8.75 million to €4.34 million while service charge income reduced by 27 per cent from €6.44 million to €4.69 million.
The Village commenced trading in July 2006 with 10,968sq m of lettable area and this had increased by 48 per cent to 16,204sq m as of the end of 2020, when it as 97.7 per cent occupied.
The construction of phase three of Kildare Village commenced last year.