National Crafts, the pottery manufacturer partly owned by businessman Stephen Pearce, increased its long-term bank borrowings by close to €1 million last year.
The latest returns for National Crafts filed with the Companies' Registration Office show that Bank of Scotland (Ireland) took a floating charge over the entire assets of the business last October, along with mortgages over properties at Shanagarry, Co Cork, where the operation is based.
Mr Pearce, the company's biggest shareholder and a director, assigned the benefit of life assurance policies with a value of €634,869 to the bank, (which means it will benefit should he die and policies are cashed in) and guaranteed debts of €63,487.
The accounts show that, during 2004, the company's longer-term bank borrowings, due for repayment after one year, increased to €1.75 million from €809,000 the previous year. Under the same heading, finance leases dropped by €24,000 to €95,200.
The total amount due for repayment after one year rose to €1.84 million from €928,000. The total amount of short-term debt, that is due within a year, dropped by €119,000 to €333,300.
The figures show that the company's accumulated profits grew by just over €52,000 in 2004 to €1.937 million from €1.885 million. Shareholders' funds grew by €58,000 to €2.3 million.
Mr Pearce, who has an address in Florence, Italy, is the biggest shareholder in National Crafts, with 32,000 of its 71,320 issued shares, a stake of close to 45 per cent.
Three of his co-directors, his wife Lauren Pearce and brothers Michael and Patrick Tattan of Ballycotton, Co Cork, hold 7,160, or just over 10 per cent each.
The company renominalised its shares into 10 cent units last February. At the same time, it issued a 20 per cent stake to Nattat Investment Company, whose directors are the Tattans. Bridget O'Riordain of Shanagarry holds 3,580 National Craft shares.
During the year, it took over the business of Penn Castle Ltd, which was in the red to the tune of €770,000 and had liabilities of €1.1 million at the end of 2004.
