Eatonfield losses rise to £15.4m
CHESHIRE property group Eatonfield has declared a annual pre-tax loss of £15.4m, up from £5.6m, after a “very challenging year.”
The Tarporley-based company said its ability to sell some assets in Wales would be fundamental to its future.
Its auditor, Baker Tilly, also flagged up “material concerns” over the group’s future, stating there is an “existence of material uncertainties which may cast significant doubt on the group’s ability to continue as a going concern”.
Eatonfield only has enough resources to continue to trade until the end of January, and admits it is “likely to require” further equity funding in the next few months.
Executive chairman Brian Corfe said: “It has been a very challenging year.
Conditions in our core markets have remained problematic and the recent public sector spending cuts have contributed further to the uncertain outlook. Added to these difficulties, the Group has been under substantial cash flow pressure throughout.”
Mr Corfe said the company was focused on tackling a number of ‘ongoing challenges’ to secure a meaningful future.
He added: “Fundamental to the Group’s ability to continue as a going concern is the finalisation of negotiations with the potential purchaser of the Welsh Sites, the agreement of the related follow-on house building contract as well as similar arrangements next year for the Corus and Birkwood sites, the likely equity fundraising required and the continuing support of the group’s banks.
“Whilst the board acknowledges the ongoing challenges facing Eatonfield, we will continue to work very hard to secure a meaningful future for the Group.”
Eatonfield owes lenders, which include Royal Bank of Scotland and Allied Irish Bank, £26.7m, some £1.9m down on last year.
Revenue in the year to the end of June fell to £5.7m from £8.4m last year, while losses from operations rocketed from £2.9m to £12.5m.
Eatonfield’s chief executive Rob Lloyd, who once appeared on the Channel 4 Secret Millionaire programme, was involved in an unsuccessful bid to buy Portsmouth FC earlier this year,
