A FOREIGN currency hit from its South African operations left developer Seán Dunne's Mountbrook Homes in the red in 2006, the latest figures show.
Accounts just filed with the Companies' Registration Office show that in the 12 months to October 31st, 2006, Mountbrook had profits before tax of €1.56 million.
Its after-tax profit for the year was €1.4 million. However, a €2.4 million charge for foreign currency adjustment left it with a €1 million loss for the year and reduced shareholders' funds by a the same amount to €4.9 million.
The company yesterday blamed fluctuations in the South African rand for the charge.
Mountbrook owns and operates the Lagoon Beach Hotel complex in Cape Town, South Africa, which it built on a site it bought in 1997.
"Under normal accounting practices, Mountbrook Homes is required to re-translate balances at the year end, and the foreign currency translation is an unrealised accounting adjustment in adherence to these practices," Mountbrook said.
The notes to its accounts show that during the 2006 financial year, one South African subsidiary, Lagoon Beach Property Development, made a loss of 8.7 million rand (€760,000), while a second, Lagoon Beach Hotel, lost 6.7 million rand.
Mr Dunne is Mountbrook's main shareholder. He is best-known as the developer behind a plan to build a high-rise apartment and hotel complex in Ballsbridge, Dublin.
Mr Dunne agreed to pay hotel group Jury's Doyle €379 million for the site in late 2005 in what was then billed as the most expensive land deal done in the State's history. Residents and a number of interest groups are opposed to the plan, although Dublin City Council's management supports proposals to rezone the area to allow high-rise buildings.
Mountbrook's accounts show that the company's turnover dropped by almost €20 million in the 12 months to the end of October 2006 to €8.3 million.
The company said yesterday that this fall in revenues was largely due to the fact that it had completed and sold a large number of developments during 2005. Operating profit fell to €2 million in 2006 from €6.6 million the previous year, while profit before tax was €1.5 million, down from €6.5 million.
