Madejski property firm widens losses but gets time from banks

Marion Dakers
THE PROPERTY company controlled by former Reading Football Club owner Sir John Madejski widened its losses last year, but gained more breathing space from its lenders.

Sackville Properties posted losses after tax on continuing operations of almost £10.9m for the year to 31 March 2012, up from £4.6m the previous year.

Turnover rose slightly to £4.34m at the firm, which was hit hard by the real estate crash in 2008 and has been in breach of its banking covenants with RBS since 2010.

The firm’s directors have made an informal deal with RBS to ensure its £52.7m loan is not called in until December 2013, “in order to facilitate the orderly restructuring of the group’s property portfolio”.

BDO, the company’s auditor, states in the accounts that “there is no guarantee that funding will not be withdrawn as a result” of this agreement and that “material uncertainties” remain.

But it stresses that the firm’s directors think the business has enough resources to pay its loans as they fall due this year. The firm did not respond to a request for comment on the accounts.