Councillor’s property firm is back in the black

A property and construction company owned by a Tuam-based county councillor has returned to profitability, after recording massive losses in recent years.

According to newly-filed accounts at the Companies Registration Office, Thomas McHugh (Kilcloghans) Ltd – owned by the Fine Gael councillor and his wife Sally – recorded a net profit of just over €90,250 for the year-ended October 31, 2014.

However, the company has a deficiency of assets of almost €5.9m and is now in talks with its new loan providers on its future.

The profit is a significant turnaround on the previous year, when a net loss of more than €4m was recorded. In 2012, the figure was just under €1m and in 2011, the net loss was almost €1.3m.

Outstanding terms loans on property and assets totalled more than €5m, while the directors were owed €900,000.

According to the accounts, a large portion of the company’s loan facilities were sold by the existing lenders to new providers in 2015.

“The existing security over those loans was transferred to the new providers as part of this process. The directors are currently engaging with the new owners of the debt with a view to making to the debt sustainable over the medium term … no agreement [has] been reached in these negotiations, but the directors are confident of a successful outcome for the company,” the accounts read.

Coney Investments DAC (Designated Activity Company) – a company ultimately owned by a trustee company based in the Cayman Islands – has security over lands and property on the Milltown Road, while Galway County Council has a €450,000 fixed charge over other lands in Tuam.

Bank of Ireland also holds a charge over land, assets, life policy and letters of guarantee from the directors totalling €685,000.

St Jarlath’s Credit Union hold a charge over sites at Cloghran, Kilcloghans and other properties owned by the directors.

The company owns three-quarters of the Ard Rí House Hotel in Tuam, while the directors personally hold the remaining 25%.

The company charged the hotel €286,000 in rent and €26,000 in management fees for the year.