The Square management company confident of continued support
By Maurice Garvey
THE company which owns the freehold interest of The Square shopping centre has identified a “material uncertainty” related to its ability to remain in business for the foreseeable future.
The Square Management recently published its results for the year ended September 30, 2019, which included the note regarding its “going concern”, an accountancy term that describes a company that is expected to continue operating without the significant threat of liquidation.
The Square Shopping Centre
The company is also responsible for certain maintenance and carries out the trade of the car park.
In the results, the company said it had identified a material uncertainty related to its going concern and the refinancing of its intermediate parent company, OCM Luxembourg Square Retail, and its “significant” third party debts, which mature in less than 12 months.
It said other group companies which own units in the centre, and are responsible for service charges, are guarantors of these debt liabilities.
The firm also said its going concern was reliant on receiving service charge payments from tenants, which had decreased due to Covid-19.
This issue increased the likelihood of the company requiring group support.
However, the firm is to continue as a going concern. It said it was confident it would continue to receive support for at least a year, and that it expected trading to approach normal levels by the first quarter of 2021.
Square Management reported a pre-tax loss of €260,200 in 2019.
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