PROPERTY DEVELOPER Liam Carroll has disclosed multi-million-euro losses on some of his biggest stock market investments in new filings to the Companies Office.
Heavily exposed to the drastic decline of the Irish stock market as the economy contracts amid exceptional international volatility, Mr Carroll is well known for taking significant stakes in companies such as the ferry operator Irish Continental Group and food business Greencore.
The full scope of Mr Carroll’s financial affairs cannot be determined from statutory filings by his business empire as the unlimited liability status of some of his core companies means he is not obliged to file accounts in public.
However, new audit reports filed to the Companies Office for firms at the heart of his business operations indicate that the ability of these firms to continue as a going concern “is dependent on the availability of continued financial support from group companies and their bankers”.
The companies include Showlay, an unlimited liability vehicle that is the parent company to many of the big operating companies in Mr Carroll’s business.
In a section titled “emphasis of matter” in a report signed off on February 20th, auditors LHM Casey McGrath say Showlay’s directors “have reviewed the financial projections and considered the availability of financial support and, on the basis of this review, believe that appropriate funding will be made available to the company to continue as a going concern”.
The auditors made similar remarks in respect of South Morstan Investment Company, which controls Mr Carrolls interest in Irish Continental Group.
Mr Carroll owns some 29.54 per cent of this company, which is the subject of a takeover battle involving its chief executive Eamonn Rothwell, investment group One51 and Doyle Shipping.
According to South Morstan’s abridged accounts, the firm took an impairment charge of €8.89 million in respect of its €173.08 million investment in Irish Continental Group in the year to March 31st, 2008. This investment was valued at €164.19 million on that date, but its value dropped by €48.97 million in the period to January 29th to the point that it was worth €115.23 million.
Separately-filed abridged accounts for Gainsco, one of two companies deployed by Mr Carroll when he was building a 29.9 per cent stake in Greencore, show that the value of its stock market investments have also dropped significantly. Greencore is not named in the Gainsco filing. However, investments with a net book value of €205.75 million were impaired by a total of €24 million in the year to March 31st, 2008.
Valued on that date at €181.74 million, this investment had declined in value to €76.69 million by January 29th last.
When The Irish Times contacted Mr Carroll’s office, a solicitor acting on his behalf returned the call but he did not respond to an invitation to comment.
