Prof­its soar at Ro­han group to hit €42.5m

Irish Independent - Business Week - - Front Page - Gor­don Dee­gan Gor­don Dee­gan

MEM­BERS of the Ro­han fam­ily, which is be­hind one of the coun­try’s largest prop­erty in­vest­ment and devel­op­ment firms, Ro­han Hold­ings, last year shared in a div­i­dend wind­fall of €10.8m.

That fol­lowed a bumper year for the Jamie Ro­han-led group when it en­joyed a pre-tax profit of €42.5m – more than a five­fold in­crease on the pre-tax prof­its of €7m in 2016. The ma­jor leap in prof­its fol­lowed Airspace In­vest­ments Ltd and sub­sidiaries more than tripling rev­enues, go­ing from €20.6m to €62.6m. The di­rec­tors state that “2017 was an­other pos­i­tive year for the group”. They state that the group’s pre-tax prof­its were boosted by the devel­op­ment, let­ting and sub­se­quent sale of 21 Charlemont in Dublin 2.

The di­rec­tors state: “2017 also saw in­dus­trial de­vel­op­ments in re­sponse to im­prov­ing de­mand and rent lev­els in this sec­tor.”

The group’s de­vel­op­ments in­clude Grand Canal Plaza in D2 and the di­rec­tors go on to add that the “strength of the balance sheet is re­flected in the €115m of prop­erty as­sets to­gether with a sig­nif­i­cant land bank which have no at­trib­ut­able bank debt”.

At the end of Novem­ber last, the group had share­holder funds of €175m that in­cluded €121m in ac­cu­mu­lated prof­its.

The com­pany’s cash pile dur­ing the year more than dou­bled go­ing from €28.36m to €66.4m.

Di­rec­tors’ pay in­creased from €702,072 to €1.1m. Num­bers em­ployed to­tal 13. CELEBRITY chef Richard Cor­ri­gan said that his Vir­ginia Park Lodge ven­ture “is go­ing great” and he ex­pects to record a small profit there this year.

Mr Cor­ri­gan was com­ment­ing on new ac­counts filed by Vir­ginia Park Lodge Ltd which show that the com­pany’s losses in­creased marginally to £466,282 (€517,566) in 2016 as it con­tin­ued in its startup phase.

The in­crease in losses came in spite of rev­enues dou­bling go­ing from £929,819 to £1.8m at in the 12 months to the end of De­cem­ber 2016. The ven­ture con­tin­ues in its in­vest­ment phase and the pre-tax losses in 2016 fol­low pre-tax losses of £439,671 in 2015. The losses in 2016 arose from cost of sales to­talling £1.2m and ad­min­is­tra­tive costs of £943,120. Mr Cor­ri­gan said that the losses were “ab­so­lutely an­tic­i­pated” due to the busi­ness con­tin­u­ing in its in­vest­ment phase.

On the an­tic­i­pated profit in 2018, Mr Cor­ri­gan said: “The es­tate will show the mak­ings of a busi­ness this year. It is a year over­due due to a large project at the es­tate last year.” The loss in 2016 takes ac­count of hefty non-cash de­pre­ci­a­tion costs of £275,392.

Num­bers em­ployed in­creased from 34 to 53. Mr Cor­ri­gan said that he in­vested a fur­ther £1.6m in the busi­ness last year. He said: “It is very much a hun­gry beast.”

He said: “I am very, very pleased with how the busi­ness is go­ing. It is very much a per­sonal project. I thought it was go­ing to be a six-year project, but I think it will be a 10-year one.”

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