Curtailed by property crash

Killultagh Estates is a large Northern Ireland-owned company engaged in managing property for rental and investment. This company is only one of a number of closely related property companies controlled by the related shareholders.

As a property investor, the main notable features of the profit and loss account, and the balance sheet, until 2008 were the increase in the value of its fixed assets and investments and their impact on borrowing and interest charges.

More recently, particularly in the year to March 2010, the accounts reflect the impact of the large reduction in property values although borrowing costs remained a large cost.

Capital spending, after large commitments in 2005 to 2008, has fallen sharply.

The balance sheet values of assets and investments rose from £155m in March 2005 to £293m in March 2008, including unrealised revaluations of over £45m.

Support for the recent expansion of the business has come from increased bank financing which grew from £101m in March 2005 to £235m in March 2008.

Shareholders' funds, as stated in the balance sheet, were over £74m in March 2007.

Then in March 2008 the stated value was £68m and fell further (after revaluations) to £53m, by March 2009 and further to only £2m in March 2010: a fall of £72m.