Tuesday, June 2, 2015

Out Of Order- €7m losses at ‘loo with a view’ developer’s company



Losses continued to mount last year at a construction firm that splurged €400,000 on a derelict “loo with a view” at the height of the building boom.


In 2008, owner of Galvin Construction Ltd, John Galvin bought the site containing the toilet block on the promenade in Lahinch, Co Clare, “with unrivalled and unparalleled sea views” after his nearest bidder declined to go beyond the €400,000.

Mr Galvin subsequently secured planning for two shops and three apartments on the site in 2011, but has not proceeded with the plan.
New accounts show the that Co Clare construction firm had accumulated losses of €7m at the end of June 30, 2014.

The firms owed €6.9m in bank loans and overdrafts at the end of June 2014 and the accounts just filed with the Companies Office show the firm recorded losses of €196,652 in 2014.
A note attached to the accounts states “the company has significant bank borrowings relating to its development sites as well as its construction division”.

Its development sites had a value of €4.3m in 2010 and at the end of June last, the value was €247,618 representing no change on the previous June.

The note states the directors have reviewed the recent sudden deterioration in the financial and economic environment which occurred and are aware of the market conditions in which the company now operates.

The accounts confirm that Ulster Bank holds security over several company assets.

Gordon Deegan

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