Company Snapshot: Kennedy Group Holdings Ltd
The Kennedy Group Holdings, based in Coleraine, is a well known family-controlled business with a range of interests in property development and also with some direct construction activities.
Last month two companies in the group, J Kennedy & Co Ltd and Kennedy Concrete Products Ltd, went into administration.
The group either owns or holds significant shares in 19 companies mainly focused on property development.
These investments include several joint ventures where the Group has a 50% interest in Turnus Ltd, Dado Developments (Pottingers Quay), Kenry Developments and Waterside Crescent.
Reflecting the recent difficulties in the property market, the consolidated results for the group reveal a year by year reduction in business turnover from a peak of £55m in 2006 falling to £23m in 2009.
Operating profits have also been hit by the changed conditions.
Following several years of positive and improving operating profits, the results in 2008 show an operating loss (including the impact of losses in the joint ventures) of nearly £2m.
Now, the recently released results for 2009 show an even larger operating loss of £5.7m,
Pre-tax profits have tended to be slightly lower than operating profits because of net payments of interest on borrowed funds.
Pre-tax profits were maintained in 2008 by the inclusion of the profit of £2.9m from the sale of some property.
The balance sheet value of shareholders’ funds rose steadily year by year until the end of September 2007 when |they reached £26.1m, an increase of over one third on a year earlier.
As a consequence of the addition of an unrealised increase in the capital value of some key property, which brought an additional £5.4m to the balance sheet, the final balance sheet value of shareholders’ funds in September 2009 was maintained at £25.8m.
Direct employment in the group has fallen from an average of 200 people four years ago to an average of 98 people last year.
Around 55 jobs are expected to go following last month’s administrations.