One sector that has largely managed to escape being the object in finger-pointing after the collapse of the property and banking sectors, has been Irish stock-broking firms. Davy was involved in the disastrous Irish Glass Bottle site in Ringsend where investors saw colossal losses. NCB saw 26 of its investment companies placed in liquidation in January 2013. Goodbody was very active in introducing property investments to its clients, and we have previously seen NAMA had receivers appointed to Goodbody investments.
The BBC today reports on accounts recently filed for two companies 99% owned by Goodbody reveals another disastrous episode overseen by the stock-broker. GSB Northern Ireland PLC (incorporated in the Republic of Ireland) accounts for the year ended March 2012 and GSB Millmount Homes PLC accounts for year ended December 2011 are now available.
GSB Millmount’s accounts reveal that GBP 32,631.08 was received as a “final dividend” from its GBP 29.7m investment in a venture called JVCO, which was a joint venture with Northern Ireland’s Taggart Homes, a company in severe financial distress. That’s just .1p in the pound.
We are still waiting to find out how a GBP 25m investment by Goodbody’s clients/victims has ultimately fared in a separate company, GSB Northern Ireland PLC but that company has written down the value of the investment to nil, so probably not very well! GSB Northern Ireland appears to have entered into ventures with John Farmer’s Jersey-based Orana group which included, according to the BBC, a “36-`acre site at Crescent Link in Londonderry which was refused planning permission for a supermarket development last year”
In these two companies alone, it looks like Goodbody has realized losses of GBP 55m (€65m). Maybe time for the stock-broking sector to acknowledge its role and performance in the boom and crash.