British firm run by Bailey brothers loses £52m

A BRITISH property development joint venture partnership controlled by builders Tom and Michael Bailey recorded losses of £52 million (€59.8 million) last year, new accounts show.

The loss by Castle Farm Telford Ltd Liability Partnership (LLP) is confirmed in accounts recently filed to the Companies House by the Bailey brothers’ Bovale Ltd.

The filings confirm that Castle Farm Telford LLP, of which Bovale Ltd own 87.5 per cent of the capital, recorded a loss of £52 million in the 12 months to the end of March last year resulting in a shareholders’ deficit of £41.2 million at the end of the year.

The abridged unaudited accounts for Bovale Ltd do not provide any reason for the loss sustained by the partnership. The loss sustained by Castle Farm Telford in 2009 was £54,709.

Separate figures in the returns for Bovale Ltd show that its losses totalled £11.4 million in the 12 months to the end of September.

In the new filings, the directors of Bovale Ltd state that the company is reliant upon the successful conclusion of negotiations concerning its future with the National Asset Management Agency (Nama).

The directors, listed as Michael and Tom Bailey and Charles Collie, state: “If a successful agreement is not forthcoming, the company would have to seek alternative financing to meet its financial obligations.”

The note adds: “The directors have considered the company’s future financing and cash-flow requirements and believe that the company will be able to fulfil its obligations for a period of at least 12 months from the date of signing these financial statements.”

The accounts, approved by the board on June 29th last, show that the Shrewsbury-based company had amounts totalling £84.5 million falling due to creditors within one year, including £78.5 million for which security has been given.

The brothers’ Irish-based property company Bovale Developments is one of the largest landowners in the State, but it is an unlimited company, so information on its financial position is not available.

However, the accounts for the British-based Bovale Ltd show that the loss sustained last year increased the company’s accumulated losses to £35.3 million.

A write-down of £1.1 million on an investment property resulted in aggregate write-downs totalling £7.1 million, giving an overall shareholders’ deficit of £42.5 million at year end.

The Bailey brothers made a record €22.17 million tax settlement in 2006 with the Revenue Commissioners that arose from the Flood/Mahon tribunal.