Quinn reports 'disappointing' €527,000 loss as turnover slides to €1bn

THE QUINN Group has reported a “very disappointing” pretax loss of €527,000 for 2010, according to accounts released yesterday.

Turnover at the group dropped to €1 billion, from €1.8 billion, though the placing of Quinn Insurance Ltd into administration in 2010 meant its figures were only included for the first quarter.

As far as continuing activities were concerned, turnover actually grew, to €729,303, from €681,443 the previous year.

The stripping out of the insurance business from the group’s books created a net boost of €325 million to the group’s consolidated accounts because of the removal of net liabilities.

Provision made in the group’s books in respect of loans due from companies owned by the Quinn family was increased by €10.2 million during the year, to €956 million. “The board has engaged external consultants to review the circumstances surrounding the granting and the subsequent non-repayment of loans to family-controlled companies leading to the necessity for the provision against these balances totalling €956 million.”

There were substantial impairments made during the year arising from the downturn in trading conditions.

The group’s indebtedness at the end of 2010 was an unsustainable €1.3 billion, but earlier this month a restructuring agreement was arrived at by the creditors. The group has a new holding company, Quinn Group Holdco Ltd.

In April 2010 Anglo Irish Bank (now the Irish Bank Resolution Corporation) appointed a share receiver and a new board and a new management team was appointed to the Quinn Group.

In their report the directors said that while the results for the year were very disappointing, the core manufacturing divisions – being glass, plastics and packaging, radiators and construction industry supplies – delivered a satisfactory performance in extremely difficult circumstances.

Exceptional costs during the year, including restructuring costs, were €53 million. Exceptional impairment charges were €190 million, arising from a reassessment of certain assets in the context of the business downturn.

The impairment in manufacturing assets was mainly in the construction industry supplies and the radiator plants, while €40 million related to impairments associated with landfill and windfarm assets that have been disposed of.

A landfill site was assessed at March 30th, 2010 as having a value of €45,000. This led to an impairment charge of €19.8 million. The other €20 million arose from revaluation of a windfarm.

Directors’ emoluments were €1.36 million, down from €2.7 million in 2009, with the highest paid director receiving €414,296 (2009, €1.2 million).

Donations to charities were €36,000, down from €212,000 the previous year.