Stock image. Photo: Andrew Aitchison
Directors at Michael Cotter’s Park Developments have blamed industry-wide challenges of a lack of zoned land, planning delays and lack of investment in public infrastructure for revenues plummeting by €119.3m last year.
New consolidated accounts filed by Park Developments (Dublin) Ltd show that pre-tax profits declined by 50pc from €23.45m to €11.6m in the 12 months to the end of June last year.
This followed revenues declining by 54pc from €222.14m to €102.75m.
The family-owned business operating since 1962 has constructed more than 13,500 homes in that time and its schemes include East Village at Clay Farm in south Dublin and Woodward Square at Leopardstown, Dublin 18.
In their report, the directors said the decline in revenues was due to a number of industry-wide challenges.
They said there has been a lack of zoned land available in the marketplace to enable a strong pipeline for continuation of construction projects, particularly housing projects.
The directors said there have been a number of challenges and delays in determining planning decisions – in some cases where it has taken more than two years to adjudicate.
There has also been a lack of investment in public infrastructure, they said, which in turn has caused significant delays that impose challenges on the viability of projects.
The directors said the company is a member of the Gansu Group and the group holds a facility with Allied Irish Bank plc and Bank of Ireland.
The note stated that “all loans were fully performing throughout the year”. It added: “The directors believe that the group can continue to manage its business and pay its liabilities as they fall due, including the servicing of interest on all of the group’s external bank facilities.”
On the group’s profits declining, the directors said over the last two years, the group’s net margin has been impacted as a result of cost inflation and interest-rate increases experienced in the construction sector.
The group recorded a post-tax profit of €9.83m after incurring a corporation tax charge of €1.78m.
A breakdown of revenues shows that €83.29m was generated through residential and €19.46m from commercial.
Numbers employed reduced from 74 to 65 as staff costs declined from €9.23m to €8.14m.
Directors’ emoluments reduced from €2.2m to €1.94m.
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