Belfast Telegraph

Property firm bucks downturn

By John Simpson

FOYLESIDE Ltd is a large privately owned property company owned by Northern Ireland shareholders with a wide property portfolio across the UK with some held in subsidiary companies registered in Gibraltar.

Locally the company owns the shopping centre of the same name in Derry City as well as Forestside in Belfast.

The trading results reflect a stable revenue stream from the properties which has resulted in a healthy operating profit.

The registered accounts show an exceptional administrative charge in the year to July 2011 which is taken as a deduction from operating profit. In the details here, the exceptional charge of £15.4m is excluded from the operating profit but is shown as a deduction from the pre-tax profit.

As a property company, the proportion of operating profit absorbed by payments of interest on borrowed funds critically affects pre-tax profits. Interest charges each year exceed £30.7m. In July 2012, the company had total bank loans of £546m, down fractionally on a year earlier.

Pre-tax profits at £3.5m in 2011-12 were lower than last year, after allowance for the impact of the exceptional adjustment in 2010-11.

Foyleside has faced a decrease in the market valuation of their fixed assets. In 2010-11, the balance sheet accounts for Foyleside carried an adjustment for a negative unrealised movement on the value of property of nearly £96m, from £666m in July 2010 to £557m in the following years. The value of shareholders' funds fell sharply to under £9m from nearly £116m.

Belfast Telegraph