Shannon Development records €17m deficit in ’09

SHANNON Development recorded a deficit of €17.355 million in 2009, according to its annual report released last week. It also saw a decrease in reserves of over €11 million.

The report also showed that numbers employed at Shannon Free Zone had declined during the year.
“Two hundred and sixty new jobs were created at Shannon Free Zone in 2009. However, reflecting the extremely difficult trading environment for industry at Shannon Free Zone, in terms of sustaining employment, job numbers at the Zone fell 11% year on year, from 7,107 in 2008 to 6,320. It should be noted that almost 80% of those job losses were the result of down sizing and not closures.”
Attendance at Shannon Castle Banquets and Heritage Ltd’s day visitor attractions fell by 13% from 505,000 to 440,000.
The report also shows that numbers employed by Shannon Development dipped from 138 in 2008 to 126 in 2009, while the number employed in its subsidiaries dropped from 197 to 167.
In terms of income, the amount received from rental fell from €17,016,000 to €14,724,000 last year. The amount of EU income fell from €12,861,000 to €10,834,000.
While the deficit may be disappointing, the report outlined a plan for recovery.
“While the company has experienced financial challenges, due to the impact of the economic downturn on the property sector, the board has taken steps to address these by reducing costs, developing new income sources and monitoring capital expenditure programmes.
“During the year the board approved the company’s Five Year Strategic Plan that sets out how the Company will deliver its mandate over the period 2009-2013 and which incorporates a financial plan demonstrating the Company returning to profitability and delivering a capital development programme of €52 million by 2013.
“The plan envisages the economy stabilising in 2010 and returning to growth in 2011. The return of liquidity to the financial markets will facilitate the realisation of a number of significant property sales and investment in the Shannon Region.
“The board is confident that it has the resources to deliver the Strategic Plan which underpins how the Company will lead and drive the economic development of the Shannon Region during the period 2009-13.”
It claimed that a number of steps had been taken to boost local tourism during the year.
“Shannon Development directly undertook a series of tourism boosting initiative s in domestic and overseas markets. As a result, the Company generated an estimated €47 million in tourism revenue for the region, attracting almost 315,000 additional visitors and generating almost 600,000 additional bed nights for the Shannon Region.”