The body representing Irish Catholic bishops ploughed €400,000 into its loss-making publishing arm Veritas last year, newly-filed accounts show.
Veritas Communications last week announced that it would cease operations by the end of this year, resulting in the closure of seven Veritas shops around the State and the loss of up to 80 jobs.
The accounts for Veritas Communications reveal that the Irish hierarchy took steps last year to prop up the loss-making religious publisher. The bishops made their intervention after a sharp downturn in fortunes for Veritas Communications. The firm recorded losses after tax of €224,868 in 2022 after recording a profit of €252,259 for 2021 – a negative swing of €477,127.
A note attached to the accounts states that, subsequent to the year end and before the approval of the financial statements, “the group was in receipt of short-term funding from the Irish hierarchy totalling €400,000″.
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Financial projections for a period up to June of this year prepared by Veritas Communications Group were based on assumptions which included improved revenues, improved working capital management allowing for business seasonality and continuing financial support from the Irish hierarchy, the note stated.
The directors said it was appropriate to proceed on a “going concern” basis based on the underlying assumptions, In addition they considered “the continuing support from the Irish hierarchy, which has been evidenced by the receipt of the additional short term funding in 2023″.
In the accounts the directors said they were satisfied the group would have sufficient funds to meet liabilities as they fall due. However, last Friday the chairman of the Veritas board, Chris Queenan, said a decision to cease operations and commence an “orderly wind down” had been taken following a strategic review.
He said Veritas had seen a significant and sustained downturn in its business in recent years, blaming an “ever-changing market, societal dynamics and evolving shopper habits” which, he said, had impacted both the competitiveness and commercial viability of the business.
Separate 2022 accounts for the financial arm of the Irish hierarchy, the Hierarchy General Purposes Trust, show the €400,000 loan to Veritas plus interest was to be repaid no later than September 2023. The trust accounts show that Veritas Communication already owed it €625,584 at the end of 2022.
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