Operator of The Square in Tallaght back in profit

The company that runs The Square shopping centre in Tallaght returned to the black last year after solicitor and property developer Noel Smyth waived €4.56 million in fees that were owed to him.

Latest accounts for The Square Management Ltd, whose debts were transferred to the National Asset Management Agency, show it made a profit of €3.7 million in the year to the end of September 2013 compared with a loss of €2.3 million in the previous 12 months.

The directors’ report states that the reason for the turnaround was the waiver of the fees by Mr Smyth, who resigned as a director in June 2013.

This helped to narrow the deficit in shareholders’ funds to €14.1 million from €17.7 million previously. However, its bank loans widened to €17.9 million, with the borrowings due to be repaid on or before September 30th, 2015.

Turnover rose by 8.8 per cent to €7.5 million. Its service charge revenue rose by 5.9 per cent to €6.6 million, while car park revenues increased by just more than one-third to €944,471.

The company owns the freehold to The Square and is responsible for its maintenance and other services to tenants, and the operation of its car park.

The accounts state that Nama acquired the loans from the former Irish Bank Resolution Corporation. A note to the accounts stated that the company is supported by the continued renewal by Nama of its bank facilities and the agreement of the State agency to defer interest payments on its loans.

“Based on Nama’s support . . . the directors believe that the company will have sufficient financing to meet its liquidity requirements for at least 12 months from the date of approval of the financial statements,” the document states.

The company adds that were Nama’s support to end, it could “cast significant doubt” on its ability to “realise its assets and discharge its liabilities in the normal course of business”.

The Square Management Ltd is currently seeking to redevelop part of the shopping centre, with Nama providing some funding to help facilitate this work.

Nama declined to comment on the accounts yesterday, while Mr Smyth could not be reached.