CLONAKILTY-BASED business processing group SouthWestern, which is controlled by Ion Equity, recorded a 47 per cent increase in its earnings before finance charges were deducted last year.
However, the business was dragged into the red by substantial property-related exceptional costs and other charges.
Latest accounts for Oak Acquisitions Ltd, SouthWestern’s holding company, show it recorded earnings before interest, tax, depreciation and amortisation (Ebitda) of €1.9 million in 2009. This compared with Ebitda of €1.3 million in the previous 12 months. Turnover was flat at €22 million.
Losses related to property assets, and other finance charges, resulted in the company posting a loss for the year of €12.8 million.
This compared with a loss in 2008 of €16.8 million, when the company also booked a variety of exceptional items, impairment charges and interest costs.
SouthWestern had exceptional costs last year of €9.1 million. This included an impairment charge of €7.7 million relating to development land owned by a joint venture entity called Thornbush Holdings Ltd. It also took a charge of €1.4 million relating to the disposal of SWS Property Services Ltd, which was sold to its management. This sale also resulted in a goodwill impairment charge of €715,463.
The accounts show that Ion Equity invested €45 million in the business in December 2009 through long-term, convertible, zero-coupon loan notes. This money was used to repay certain debts and for working capital purposes. It left the company with €32 million in net assets.
In a statement, Ulric Kenny, a director of Oak Acquisitions and Ion Equity, said the funding was “primarily intended to support the accelerated growth of the SouthWestern business”.
Chief executive Jim Costello said it had won a “number of very significant customers this year”.
SouthWestern holds outsourcing contracts with a number of leading companies, including O2, the Department of Agriculture, and Independent News Media.
It also owns SWS Forestry in Cork.
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