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A development company controlled by the brothers behind one of Northern Ireland’s biggest construction empires has seen profit at its joint ventures increase 15-fold.
Recently filed accounts for Lagan Developments (Holdings) Limited, which is controlled by Belfast brothers Michael and Kevin Lagan, recorded a profit of £19.2 million from its joint ventures in the year ended March 31st, 2017. That compares to a total profit from its joint ventures of £1.23 million the previous year.
A trio of companies behind a commercial property development in Co Meath brought in the most significant profits for the company at over £18.4 million. Those companies, which were joint ventures with Balmoral International Land Limited, a company incorporated in the Republic, are due to be dissolved in the near future. The development in question involved the completion of the Navan Retail Park – a process that Lagan was involved in since 2008.
Another joint venture relating to a site in east Belfast brought the group £409,151 in profit in the period. Lagmar properties is currently planning to build more than 150 homes on the site of a former Rolls-Royce factory in the north.
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In addition to their construction activities, the overarching Lagan Group sells, amongst other things, asphalt, bitumen and cement.
The company has also carved out a niche in airport development contracts, and were recently appointed to carry out the €15 million resurfacing project of Shannon Airport.
The accounts of Lagan Developments (Holdings) Limited show the company have creditors owed over £24.5 million after one year, with £16 million owed to related parties. Separately, both directors were owed more than £8.5 million from the company.
The ultimate controlling parties of the development holding company are Kevin Lagan and Michael Lagan who own 100 per cent of the issued share capital.
While the joint ventures performed well for the holding company, it ultimately only reduced its accumulated losses by £477,247 to £21.7 million.
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