Losses rise at PolarLake as doubts cast over its future
Bloomberg bought the Irish enterprise software company for reported $25m in 2012
Bloomberg said it will continue to support PolarLake for at least 12 months
Accumulative losses at PolarLake, an Irish enterprise software company that was acquired by Bloomberg in 2012, rose to more than €100 million last year, newly filed accounts show.
The company’s auditor Grant Thornton said in a note included in the accounts that “a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern”.
PolarLake was bought by the financial data giant for a reported $25 million (€21 million) in 2012 but was allowed to operate as an independent business unit within Bloomberg.
The data management software provider, which spun out from Irish technology company Xiam in 2001, reported pre-tax losses of €14.2 million last year, down from €23.6 million in 2016 as turnover rose from €9.7 million to €10.3 million.
John Randles, the Limerick man who led the company from 2006 onwards, including after its sale, left PolarLake last year. He is now chief executive of Galway-headquartered data firm Siren, which raised €3 million in seed funding in February to help bring its technology to new markets.
The latest accounts show accumulated losses for the company totalled €100 million at the end of 2017, up from €85.9 million a year earlier. The shareholders’ deficit climbed from €73.5 million to €87.8 million.
The company received written confirmation of continued support from Bloomberg for at least 12 months together with a statement that it would not seek repayment of loans from other companies within the group. PolarLake owes €96.3 million to group undertakings, the accounts show. This compares with €85.8 million a year earlier.
PolarLake, which is now led by Warren Buckley, employed 128 people at the end of last year, up from 101 a year earlier. Staff costs, including wages and salaries, rose from €12.4 million to €14.3 million over the recording period. Directors’ remuneration fell from €1.75 million to €609,165.
The company had unrecognised tax assets of €9.4 million at the end of last year, representing €88.3 million of losses carried forward, it said.