Pre-tax profits at Gerry Gannon’s Gannon Homes declined by 40% to €3.39m in 2023 as revenues dipped.
New accounts filed by Gannon Homes Ltd show that pre-tax profits plunged after revenues decreased by 7% from €55.92m to €51.97m.
The company’s operating profits declined by 12% from €8.32m to €7.34m and higher interest payments of €3.94m reduced profits to a pre-tax profit of €3.39m.
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.
They also said that the company continues to develop stock for sale reflecting a confidence in the underlying demand for new homes.
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 9 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 €50.2m from the sale of developed assets and €1.71m from residential rental income.
The post tax profits of €3.16m further reduced the firm’s accumulated losses from €99.2m to €96.05m at the end of 2023. Cash funds reduced from €12.75m to €4.46m.
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 directors’ 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 €166.2m to €139.43m.
At the start of 2023 the firm owed €4.4m to Mr Gannon.
During the year, Mr Gannon advanced €1.85m to the company and the firm repaid €3.6m with €2.69m 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.
Reporting by Gordon Deegan
