Pretax profits at Gerry Gannon’s Gannon Homes declined by 40 per cent to €3.39 million in 2023 as revenues dipped, while the company has reached a deal to exit State bad bank the National Asset Management Agency.
New accounts filed by Gannon Homes Ltd show that pretax profits plunged after revenues fell by 7 per cent to €51.97 million.
The company’s operating profits declined 12 per cent to €7.34 million while higher interest payments of €3.94 million helped cut pretax profit to €3.39 million.
The directors state that they are confident in the company’s ability to remain profitable going forward.
They state that the activity for the year reflects the demand in house construction and sales which is a feature of overall market performance.
Mr Gannon was one of the best known developers from the Celtic Tiger era and the firm has formally been in Nama since 2012 after entering a Connection Management Agreement (CAM) that year with the debt agency.
Over the 41 year history of the company, Gannon Homes has built over 15,000 new homes in the Dublin area.
Nama is currently winding down its operations and is on track to conclude its operations by the end of this year.
A note attached to the Gannon Homes accounts states that in a post balance sheet event on December 9th 2024, the company entered into an agreement with Nama which provides for continued Nama support to finalise its current construction projects.
The company has agreed to a phased exit with Nama.
In the accounts signed off by directors, Gerard Gannon and Aidan Kenny they state that “the company has entered into arrangements with its new lenders for continued support of its operations following the refinance and acquisition by its new lenders of debts of the company”.
A breakdown of 2023 revenues show that the firm recorded revenues of €50.2 million from the sale of developed assets and €1.71 million from residential rental income.
The profits after tax of €3.16 million further reduced the firm’s accumulated losses to €96.05 million at the end of 2023. Cash funds reduced from €12.75 million to €4.46 million.
The Gannon business currently has a strong pipeline of new schemes and on the principal risks and uncertainties facing the company, the directors state that it continues to be the director’s ability to maximise the value of the company’s main assets while servicing its historic debt.
The amount owed in bank loans in 2023 reduced from €166.2 million to €139.43 million.
At the start of 2023 the firm owed €4.4 million to Mr Gannon. During the year, Mr Gannon advanced €1.85 million to the company and the firm repaid €3.6 million with €2.69 million outstanding at the end of 2023 to Mr Gannon.
Numbers directly employed at Gannon Homes decreased by one from seven to six as staff costs increased from €256,171 to €275,586. Directors’ pay totalled €10,000.
