LOSSES SUSTAINED last year at the UK construction firm controlled by builders Tom and Michael Bailey totalled €21.6 million (£18.9 million), figures show.
The new filings, just returned to the UK-based Companies House, reveal Bovale Ltd is now reliant upon receiving approval of its strategic plan for its future operations from the National Asset Management Agency.
The company’s directors state they are confident such approval will be forthcoming and “will enable the company to complete property infrastructure development to a stage where positive cash flows can then be generated”.
The directors, listed as Michael and Tom Bailey and Charles Collier, state, however, that “if the approval is not forthcoming, the company would have to seek alternative financing to meet its financial obligations”.
Bovale Ltd’s website states the company is progressing with over 25 development projects that have a combined development value of approximately £100 million.
In 2006, the Baileys made a record €22.17 million tax settlement with the Revenue in a case that arose from the Flood/Mahon planning tribunal.
The abridged accounts, signed off on September 29th, show the Shrewsbury-based company has amounts totalling £79.2 million falling due to creditors within one year, including £78.5 million for which security has been given.
However, the directors state they “have considered the company’s future financing and cash flow requirements and believe that the company will be able to fulfil its obligations for a period of at least 12 months”.
The firm’s auditors, Dawkins Lewis and Soar, however, state the disclosure concerning the uncertainty as to whether the company will obtain approval for its future operations “indicates the existence of a material uncertainty, which may cast significant doubt upon the company’s ability to continue as a going concern”.
The brothers’ Irish-based property company, Bovale Developments, is one of the largest landowners in the State, but it is an unlimited company, so information on its financial position is not available.
