This article is from page 12 of the 2012-08-07 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 12 JPG
SHANNON Development incurred losses of over € 10m in 2011, but the chief executive, Dr Vincent Cunnane, has expressed himself to be “quite pleased” with company’s performance amid the challenging times of the current economic climate.
Figures from the annual report that was released last Tuesday show that pre-tax losses at the company narrowed by over 27 per cent during the year, from € 14.5m in 2010 to € 11.9m for the year ending December 2011.
The company’s performance comes against a backdrop of revenues declining by seven per cent from € 32.4m to € 30.2m in the 12 months to the end of December last. Dr Vincent Cunnane said he was “quite pleased” with this performance and pointed out that the biggest contributory factor to the pre-tax loss was a combined non-cash cost of € 10.5m made up of a depreciation charge of € 7m and a € 3.5m write-down in property assets.
“We had a small operating deficit,” said Dr Cunnane. “Over € 10m of it is a paper loss in terms of depreciation and impairment. When you take it all out their was a small operating loss of € 1.5m,” he added.
During 2011 Shannon Development’s rental earnings from its € 100m property portfolio dropped by over € 1m from € 13.3m to € 12.2m, which represented an eight per cent drop.
Meanwhile, as a direct result of the property crash, the company’s income from property sales has collapsed resulting in combined losses of € 45.6m in the past three years, largely made up of impairment charges and depreciation. “A significant improvement in un- derlying economic conditions will be required in order to facilitate the realisation of a number of major property sales and investment projects by the company,” the annual report states. “Accordingly, the company will adjust a number of the strategic plan key performance indicators such as job creation targets, visitor numbers and capital expenditure targets during 2012 and 2013 in order to take account of the prevailing economic climate,” it adds. “I believe that the best way out of a difficulty is to face it head on,” said Dr Cunnane. “In that vein, Shannon Development has managed its resources to respond to the most serious recession in a generation. “Against a difficult economic background, Shannon Development staff are continuing to craft the building blocks to help secure the economic future of our region. For this, I would like to personally commend their continued commitment and dedication. Shannon Development will continue to work to ensure that our region is a world class global location where people want to live, work and spend leisure time. As a regional development agency we are firmly focused on delivering a strong economic future for everyone living in the Shannon region,” he added.