Dec 29, 2022

A major Northern Ireland property development group has reported pre-tax profits of £92.6m after £94m in loans were written off. Killultagh Holdings, led by developer Frank Boyd, owns retail, residential and commercial investments including Hillview Retail Park in north Belfast and office development The Mercantile in the city centre. The company accounts describe its business as the “leasing of properties for commercial and residential purposes, along with the development of properties”. It adds that the group’s revenues are mainly from rental income. Results for the year to March 2022 are a turnaround on the year previous, with pre-tax profits of £92.6m compared to £362,433 in 2021. The addition of £92.9m, noted as “administrative expenses”, led to the surge in profits. A note in the accounts adds that the write-off of “other loans of £94.2m” was included within the administrative expenses. Turnover at the business went from £8.9m to £8.8m over the year. However, 2021’s figure of £8.9m had fallen from £14.7m in 2020. Weekly Business Digest Sign Up Turnover of £8.8m for 2022 included £4.3m related to property sales and £4.4m from rental income. There was £10,800 in unit trust income, while £7,666 was “other income”. Rental income had fallen from £7m in 2021, but at £4.3m the figure for property sales was well up on £500,000 from a year earlier. Net deficit was £67.4m, compared to £160m a year previous, while investment properties were valued at £41.3m. A strategic report from its directors and filed with the accounts said: “The directors are pleased with the rental returns achieved on the properties held by the group. “The group, like many involved in property, is facing challenging times in the current economic climate and, in response to this, the directors are involved in prudent business planning and working closely with the company’s key stakeholders.” Read More It said that the business would continue to look for more opportunities for property investments. However, it was sensitive to “any changes in property market, property values, interest rates, inflation, availability of credit and consumer spending habits”. Those risks and uncertainties meant the company could be affected by unforeseen events beyond the control of the directors, it said. “The directors, however, focus on managing and mitigating these risks as part of the overall business strategy.” An independent auditor’s report within the accounts said the business had net current liabilities of £134.5m and a net shareholders’ deficiency of £67.4m. However, net current liabilities for 2022 were down from £228.2m in 2021. The auditor’s report said the financial statements were prepared on a going concern basis which depended on continued support of lenders and ability of the group to deal with uncertainties beyond its control. The auditor added: “These events or conditions… indicates that a material uncertainty exists that may cast doubt on the group’s ability to continue as a going concern”. The “material uncertainty” caveat was aired by auditors in 2020 and 2021’s results, and the directors were confident they could continue to trade. “The directors have considered future financial projections and future cashflows and are confident that the group will continue to trade for the foreseeable future. “The group depends on continued support from its lenders.” The company has been asked for further comment. Most Read