Sunday Business Post

There is plenty of analysis on what Trump means for Europe and Ireland across all the papers.

Minister for Health Simon Harris has instigated an investigation into payments big pharma companies give to doctors and public hospitals, following the Sunday Business Post exposé last week.

Former Secretary General of the Department of Finance, John Moran, has said that Public sector union’s demands for pay will “wreck” the country’s finances if all are granted. He thinks their hand is out for “what little resources we have…if we let them, other more deserving people who can’t ransom us with threatened industrial action will pay the price, or we will borrow to buy everyone off. This will wreck our finances again for future generations.” A staggering one-third of the €57bn spent by the state next year will be accounted for by public pay and pensions. Worryingly, HSE chief Tony O’Brien says that “pay increases could only be achieved at the expense of patient care and services.” Moran writes a very good article in the Business Post.

Senior members of Colony Capital, who backed McKillen, Ronan and others, and senior executives of Cerberus are very much on the Trump team.

CarVal and Goldman Sachs have both issued more than 24 summons between them in the past two weeks. It seems a lot of the funds are ramping up their enforcement of loans.

Michael O’Leary believes that Amazon can generate almost a third of its revenues from non-airline related sales on its website. Ryanair announced a staggering €1.1bn of profits for H1 this year.

The state is paying a staggering €25k per month to rent offices for the Siteserv probe. The probe extends to other big loan write-offs in IBRC before it was liquidated.  The commission has cost nearly €1.2m to-date. The total bill is expected to run to €10m.

Steorn, a company which proposed to turn physics on its head and have a self-charging battery pack and a never-die battery for mobile phone, is being wound up after €23m investment has gone into the company.

Publisher of Joe and other websites, Maximum Media, recorded revenues of €4.3m last year and EBITDA of €624k. It expects turnover of €6m to April 2017 and EBITDA of €1m. The British business is draining on the business but it is in start-up mode. It was reported a few weeks ago that Mazars negotiated recent backing from the BDO EIIS scheme to help Maximum take on the British market.

The Neville group is expected to turn sod on a development of 500 homes at Cherrywood next year. They have 3,000 sites there. Seamus Neville gave an interview to the Business Post. They have spent €10m on hotel acquisitions in recent years. There is a speculated valuation of €200m on the Neville business. They are waiting for house prices to recover further in Waterford, Kildare and Wexford before they start building there. They are also active in US and across the water and have their own joinery business.

Highfield Healthcare are opening a day hospital for mental health patients. Since 2012, they have invested €30m in mental health premises and services.

O’Neills made a pre-tax profit of €680k in 2015 on revenues of €9.7m. It also owns 45% of Elverys according to the article.

Sean Bolger of Imagine questions the state’s rural broadband plan. He doesn’t think it should be insisting on having fibre running to every home when firms like his can deliver wireless solutions.

Pre-tax profits at River Island remained steady at €7.8m off €89.4m turnover. Turnover increased 4% from the year before off the same 24 stores.

Ronal Daly Jermyn, the Cork-based solicitor firm, have announced the appointment of five new partners.

JP McManus’ battle with the US tax authorities over a disputed $5.2m tax bill after winning a $17m game of backgammon is ongoing. He was deemed non-resident by the Irish tax authorities in the year the money was won and his defence attempted to force lawyers acting on behalf of the US Internal Revenue Service to release the identity of the person in the Irish Revenue Commissioners who was the author of that letter. According to the article, the two sides have reached agreement: that person will be identified to McManus’ lawyers but the details will not be released to the public.

Bennett Construction has been awarded the first of several construction contracts for the Center Parks development in Longford. The Mullingar-based contractor will build a “four kilometre public footpath and security fence around the perimeter of the 395-acre site in Newcastle Wood”.

McArdle Skeath, a Monaghan-based supply chain management company, has raised €5m through EIIS funding from Goodbody’s 2015 EIIS Fund. The fund is managed by Baker Tilly Hughes Blake and Goodbody. The investment into the second-generation family business will be used “to fund the construction of a new temperature-controlled warehouse on a 21-acre site in Dublin aimed at the pharmaceutical, medical device and nutritional sectors”.

Kerry ice cream company, Murphy’s Ice Cream , has closed Linked Finance’s largest ever peer-to-peer lending round, securing €75,000 in 48 hours. The Kerry-based business is run by brothers Sean and Kieran Murphy. They raised the finance “with a view to increasing their high street presence in Ireland and overseas”.

Up-for-sale Wicklow-based Ardmore Studios is planning an extensive expansion plan, including a visitor centre and increased studio space. The business, which had €3.3m of revenue in 2015, is for sale and is reported to be expecting offers in excess of €15m. Its shareholders include former U2 manager Paul McGuinness, accountant Ossie Kilkenny and Enterprise Ireland.

Property developers, Luke and Brian Comer, have big plans for new development in Galway just off Eyre Square. The development may see objections from the church as it looks likely to require the relocation of nearby St. Patrick’s Church.

There is an interview with Fred Browne, CEO of Aergo Capital.

There is a profile on M&S boss Steve Rowe.

There is a focus on IT Security in the Business Post.

There is also a focus on Research, Development and Innovation.

There is a five-page report on the recent Deloitte Fast 50 awards.

There is a special magazine on Irish Dairy.

Sunday Independent

Arnotts, Ireland’s oldest and largest department store, staged a turnaround in performance last year with sales of €72m in the year-to-January, up 11% year-on-year. Operating profits increased to €1.1m from a loss of €43k in the same period last year. Recently, the Selfridges Group, owned by Galen and Hilary Weston, acquired ownership of the store for €60m.

Nicky Logue, the new general manager at the InterContinental Hotel, will oversee the remainder of a €5m renovation plan at the hotel. The hotel is owned by telecom tycoon John Malone, John Lally and Paul Higgins.

Michael George, the managing director of the New York-based Fortress Investment Group, is believed to be among the top contenders for appointment to the role of US ambassador to Ireland. Prior to joining Fortress in 2009, George was a managing director at Deutsche Bank.

Dan O’Brien discusses the Irish tourism industry in one of his pieces this week. A few interesting stats from the article:

– The number of international tourists to visit Ireland is almost twice its population, a ratio that is above EU heavyweights France and Spain.

– Last year, the number of visitors to Ireland hit all-time highs of 8.6m with a new record expected this year based on strong growth in the first nine months.

– Foreign tourists spent €4.2bn in the economy last year, marginally above the previous peak in 2007.

– Twice the number of people work in the hospitality industry now, compared to 1998.

– Britain accounts for 40% of the Irish tourist market. C.33% come from mainland Europe, with France and Germany being the two big markets.

Dublin-listed Amryt Pharma, which went public through a reverse takeover of Fastnet Equity earlier this year, is looking at its options for a necessary fundraising at the end of the year. Chief executive Joe Wiley says, “Given the stage nature of our business we have the opportunity to explore both venture debt options as well as equity”. Its lead product aims to treat the rare skin disorder epidermolysis bullosa. Wiley is also the feature of this week’s interview.

Amarenco, the solar energy company set up by former chief executive of Bord Gais, John Mullins, is in talks with institutional investors about raising strategic funding with the aim of releasing capital to fund its pipeline in France. Since the company was founded in 2013, Amarenco has raised €200m in debt and equity from investors, including Irish e-learning guru Bill McCabe.

Shannon Crematorium, owned by Jim Cranwell and his family, are spending a total of €2.4m on a new crematorium in Co. Clare. Half of the funding is coming from EIIS and the company expects to hit turnover of €1m by 2020.

“The Irish Data Protection Commissioner says that it will be “months” before her office decides whether Facebook’s controversial move to share data with Whatsapp is in line with Irish and European law.”

Indecon, an economic consulting firm, has been appointed by the Department of Communications to try and help the Government decrease the €50m in turnover which goes to UK stations every year via “opt-out-advertising”. This refers to where Sky, Channel 4 and other UK channels stream advertising spots directed solely at the Irish market, with such broadcasters accounting for c.€50m from an advertising market of less than €200m, according to a presentation made by senior officials from the Department of Communications last year.

“Hibernia Reit has accused Independent TD Mick Wallace of “using his speaking time in the Dail to make negative comments about Reits (real estate investment trusts” and Hibernia Reit specifically”, describing them as “ill-informed and without foundation”.

Narendra Modi, India’s Prime Minister, announced on Tuesday the withdrawal of the 500 and 1,000 rupee notes as part of a crackdown on tax evasion and the underground economy. The notes account for 86% of money in circulation and has led to people queuing for hours at ATMs in an attempt to exchange the now worthless notes.

The Shanghai Composite Index, China’s benchmark index, climbed 0.8% on Friday to close at 3,196.04, taking its advance from its January 28th low to more than 20%. The biggest risers for this quarter are commodities and construction stocks on the back of boosted government spending and commodity price rises.

This week’s focus piece is on cyber-crime and is well worth the read.

Sunday Times

The founders of GloHealth, the medical insurer, made at least €22m by selling a controlling stake in the joint venture it had established with Irish Life in August. GloHealth was set up in 2012 by Oliver Tattan, a former chief executive of state-owned VHI.

One Directions’ Niall Horan is on track for a $7m pay day after the voluntary liquidation of Treaty Media, a company that handled some of his royalty payments.

Citigroup is preparing to move up to 900 jobs from London to Dublin as part of the company’s post-Brexit plans.

John Griffin, the founder of London taxi firm Addison Lee, is owed almost €10.7m by Irish TV, the Irish diaspora-focused broadcaster that has gone into examinership.

New Generation, one of the most active buyers of residential property since the bust, is to be renamed Marlet Property Group, following the exit of founder Greg Kavanagh.

The chief financial officer of Paddy Power Betfair, Alex Gersh, sold 40k shares last week and netted €4.2m

Pension fund investors AIG Asset Management and Allianz are looking to invest €2bn in build-to-rent schemes in Dublin.

Canon FX, a fast-growing British foreign exchange firm, is setting up an Irish operation to take advantage of opportunities in Dublin post-Brexit.

Yahoo will have to repay up to €1.1m in employment grants to the IDA after laying off workers at its European HQ in Dublin as part of a global restructuring.

SWRVE, an Irish mobile technology company, has raised €8.7m in fresh funds.

JD Sports recorded sales of over €70m in Ireland last year and a pre-tax profit of €4m.

Enterprise Ireland has more than doubled its money on an investment in Datahug, a Dublin tech company that was sold for €12m last week.

Brian Carey column this week:

– Carey ponders the perfect storm of Brexit and the election of Donald Trump, with both Theresa May and Donald Trump committed to cutting taxes, which will likely have a major impact on Ireland’s attractiveness as a multinational HQ hub going forward.

– INM (Irish News and Media) is off to the High Court to seek to consign a €1bn balance sheet deficit to history, which is key to returning €6.2n to its patient shareholder base by way of a dividend or share buyback. INM is also seeking to wind up its Defined Benefit Pension Scheme.

– Carey also covers the Irish TV examinership.

The Marker hotel made an operating profit of almost €3.2m last year. The 187-bedroom hotel had turnover of €17.3m in 2015, a 19% increase on the previous year’s €14.5m.

Gable Insurance has stopped paying out on claims, leaving more than 1k Irish businesses, mainly in the hospitality trade, without cover for compensation awards to patrons who sustain injuries while on the premises.

Creditors of Worldspreads, an Irish betting firm that collapsed over 4 years ago with £32m in liabilities, have been paid just over 1p in the pound in the final administrators’ payment to creditors.

Flyefit, the low cost gym provider, has agreed a deal with its lender AIB which will facilitate an expansion of the fast-growing business and a shareholder restructuring. Flyefit already has 7 gyms and over 30k members; the company plans to open 3 new gyms next year following the AIB deal.

Tommy Stubbington has a two-page spread on Donald Trump’s election and his “new world order”.

Cormac Lucey brings a lot of perspective to the public pay claims and rationalises how our public sector is well paid. He stresses the need for government to police the unions and consider what may be coming down the road for the economy due to the Brexit effect.

Research carried out for the Sunday Times by pay consultants Pearl Mayer has revealed some interesting statistics on the results of hiring chief executives from internal or external sources, including the statistic that 70% of new chief executives in FTSE 100 companies in the past five years have been internal hires.

Brian Carey notes the strong position that Tom Anderson’s Empire cinema chain is in, following the sale of five of its cinemas to rival Cineworld for £94m this year. Part of the proceeds were used to clear in full a £44m debt owed to AIB. The deal means that Empire is now debt-free, in addition to receiving £47m worth of Cineworld shares.

There is an interview with Paul Doddrell, chief executive of Pepper Ireland, which last week began offering mortgages from its base in Shannon, Co. Clare. Pepper has identified niches in the market which it believes are underserviced at present, including: buy-to-let investors, the self-employed and those with blemished credit records. These customers will be charged a premium above Pepper’s standard rates which start at 3.1%. Pepper expects the mortgage market in Ireland to increase from the current €5bn per year to €8bn by 2020, assuming progress is made on resolving the housing crisis.

Sandra O’Connell has a focus on the effect delays in payments by customers have on SMEs. A recent ISME survey found that the average payment time in Q3 of this year increased by four days to 61 days, its worst performance in two years. It also found that 24% of SMEs are experiencing delays of three months or more, while a further 5% were waiting more than 120 days to get paid. Such delays can put serious cashflow strains on SMEs in particular and it is something ISME is campaigning to have addressed.

This week’s ‘How I Made It’ piece is with Kieran Linehan, founder of Ayrton Group. The safety consultancy business, which withstood the recession and is now profitable with turnover of €4m, employing c.90 staff; staff numbers had fallen to 15 back in 2009.

The Commercial Property section has a piece on Lidl and Aldi and their continued growth in Ireland. Both are on the lookout for new sites, as their market share continues to grow.

Grainne Rothery discusses the likely reduction in the attractiveness of Irish real estate investments to international investors once the proposed changes to Section 110 structures and to ICAVs and QIAIFs are introduced.

Private equity group Bain Capital has refinanced Basta, a hardware and specialist lock group, with the Dublin company’s loans being refinanced out of Ulster Bank. “The company is run by Kevin Norton. Son Niall, Openet boss, is a non-exec and the family are Basta’s largest shareholders.”

Rugby player Seán O’Brien is backing a new start-up, HUB Controls, and is taking on the role of high performance director. The company helps customers regulate heating costs through their phones. It is run by Ollie Hynes and raised €650k from private investors and Enterprise Ireland last year. It is also looking for €2.5m to fund expansion European expansion.

Former Tánaiste Mary Harney is among those who invested in the c.$4m series A funding round of Graham Stubb’s software company Diona Technologies. Harney will also take a seat on the board. The company “provides mobile access to government services, making it possible to apply for benefits or an appointment with a state agency using your phone”.

Oliver Shah has an interesting piece which uses fish fingers as an example of the effect of Brexit and the related fall in value in sterling on prices, with some suppliers of consumer goods seemingly engaging in “Brexit profiteering”, i.e. by raising prices much more than the inflation in their costs.

Other News

In true Ryanair style, Michael O’Leary is currently recruiting a PA and has a brilliant job advert (pasted below):
DESCRIPTION

Worst Job in Ireland?????

ASSISTANT TO RYANAIR’s CEO

A bright, ambitious qualified accountant is required to assist Ryanair’s misunderstood but beloved CEO and manage a wide range of issues including:

• Treasury & portfolio management
• Investment analysis
• Tax analysis & returns
• Project management and property development
• Special project work
• General drudgery
• MOL-ly coddling

Essential attributes required:

• Thick skin
• Saint-like patience
• Aversion to bolloxology
• Own collection of nursery rhymes / bedtime stories
• Ability to operate without sleep or contact with the outside world
• (Ego) massage qualifications

Note: Dubs fans, Man U supporters and cyclists will not only be automatically excluded from the process, but will be tracked down, tortured and shot.

This role is a great opportunity for an ambitious, self motivated qualified accountant to work in a demanding and interesting role. There will be significant opportunities for the candidate if successful, to further develop their career by promotion into the management team at Ryanair.

 

Suitably qualified candidates should apply with cover letter and CV to:

mcmahonn@ryanair.com by Friday 18 November 2016.
Twitter

3.8% – Potential contraction in Irish GDP over a 10-years as a result of Brexit, according to research by @IRLDeptFinance and @ESRIDublin.

1.9% – The year-on-year increase in the value of retail sales for the month of September, according to @CSOIreland. @examinerbiz

11.7% – The year-on-year rise in the average rent across Ireland in Q3 2016, the average rent nationwide is now c. €1.1k. @daftmedia

3.5% – @IRLDeptFinance’ projected Irish GDP growth in 2017. @IrishTimesBiz

€7.28bn – The value of mortgages in arrears by more than 720 days as of the second quarter of 2016. @IrishTimesBiz

4.1% – @EU_Commission projected growth for the Irish economy in 2016, down from its 4.9% projection in the spring. @IndoBusiness

130 – Number of new office buildings being planned in Dublin over the next 5 years, according to Savills Ireland. @IndoBusiness

150.4% – The ratio of Irish household debt to disposable income at the end Q2 2016, down from its peak of 215.3% in Q2 2011. @IndoBusiness