Sunday Business Post
The HSE’s director general Tony O’Brien claims that the health service requires a capital injection of €9bn to end the overcrowding problems. There is also an interview with him.
“Temple Road in the Dartry area has overtaken Killiney’s Vico Road as Dublin’s ultimate property hotspot after a cluster of multi-million euro deals saw the average price paid for homes on the street spike to €1.3m.”
Finance Minister Michael Noonan is understood to have met Des Carville, head of the Department of Finance shareholder unit, and Bank of Ireland chairman Archie Kane to discuss senior salaries in BOI. The state own 14%, so the level of influence they have on remuneration is questionable.
Leo Varadkar is interviewed in the Business Post where he confirmed he has an ambition to be Taoiseach in the future.
The company behind the Brady Family food range is close to acquiring the Co. Meath Turkey company Tombolo, owned by the Hogan family. One of the Hogan family subsidiaries recorded profits of €1.1m in 2015. The acquisition is going through the Competition and Consumer Protection Commission.
Ian Kehoe, editor of the Business Post and presenter of the programme “The Great Irish Sell Off”, says, “the real issue is not with the people who have bought Ireland. It is the manner in which it was sold”. “Ultimately it is a problem we will still be dealing with in 20 years’ time. That is the legacy of bad policy, poor vision – the missed opportunity that led to worse outcomes for our citizens.”
The value of the assets of Irish property fund Iput increased to €2bn, a 12.6% increase, on the back of rising rental income and appreciation in the value of its extensive property portfolio.
“The bankruptcy trustee of developer Sean Dunne has engaged with a trust connected to billionaire Dermot Desmond, in relation to its recent reported acquisition of a Dublin 4 mansion called Walford which was valued at €58m in the boom.”
Creditors of Pia Bang and Jeff Stokes have voted to accept the arrangements put forward by insolvency practitioner Michael McAteer of Grant Thornton. The biggest losers are Dunbar Assets, formerly Zurich bank, who will receive €67k in settlement against a debt of €8.4m.
Head of Savills, Angus Potterton, is interviewed in the Business Post. He claims that the change to tax rules is having an effect on demand for property in Ireland and that a lack of residential stock, rather than commercial, will be the biggest inhibitor to Ireland being able to benefit from Brexit and warns that Londoners could push up prices for locals. Turnover in Savills reduced by 70% from peak to trough, but 2015 turnover of over €30m exceeded the previous peak at the top of the boom. Savills paid €50m for the business, which looked ludicrous, but now is coming good again, justifying the theory of buying the market leader.
31% of companies using the EIIS scheme in 2012 subsequently failed. The failure rates in subsequent years are as follows: 2013 (15%), 2014 (13%), 2015 (12%).
West Wood gyms has bought three Crunch Fitness gyms. Membership will rise from 22k to 33k.
John Delaney has lodged defamation cases against four media outlets over their coverage of the Olympic ticket touting coverage.
John Drumm of Glencar lobbied Michael Noonan not to introduce the changes to the Section 110 loophole as it will affect his backers IIF. Glencar have big plans for primary care and other care developments.
There is a two-page special on the Northern Ireland political scene following Martin McGuiness’s resignation.
Revenue are working with the Construction Industry Federation (CIF) to communicate to developers how to register for the help-to-buy scheme. Only five building firms have successfully registered to date for the scheme.
Justin Lawless’ Dundalk tech firm Intact, which develops ERP software, has bought London firm Ramtec for £2m. Ramtec was re-selling Intact software and it now has them in-house.
Enterprise Ireland released its figures last week. It has given funding to 308 High Potential Start-Ups and 167 female-backed businesses. It also has a dedicated unit to help exporters deal with Brexit.
Jack Horgan-Jones looks at the IDA in light of Brexit, the corporation tax post-Trump and inversion. They definitely have more threats and opportunities than a normal year.
Elaine Byrne and John Moran pay tribute to TK Whitaker (RIP), described as “the architect of modern Ireland”. Moran filled the same seat and his piece is a must-read. The paragraph written by Whitaker that captures the values of the man has been quoted many times and is worth quoting again:
“Let us remember that we are not seeking economic progress for purely materialistic reasons, but because it makes possible relief of hardship and want, the establishment of a better social order, the raising of human dignity and, eventually, the participation of all in the benefits”.
Cormac Lucey in the Sunday Times also pays tribute to Whitaker.
Nadine O’Regan writes how we are beginning to experience déjà vu and seeing similar behaviours to Celtic Tiger times.
‘Word on the Street’ this week from Róisín Burke: “Changes to Section 110 tax law took in the region of 5% off some big property transactions towards the end of last year, although up to 15% had been predicted by advisors.”
In the magazine, Ian Kehoe has an interview with global political guru Noam Chomsky.
Sunday Independent
David Harney, CEO of Irish Life, Ireland’s largest pension fund with c. €30bn under management, is reported to have expressed Irish Life’s interest in investing in social housing. It’s reported to be early days in any conversations. The Sunday Times also has an Irish Life article and it is believed to be lobbying hard at government level for a radical reform of the €2.4bn private health insurance market to let companies target low-risk business. The changes being sought would allow life assurers to offer discounts to non-smokers and customers with healthier lifestyles.
Dundrum Town Centre’s tenants have raised concerns over the Centre’s poor trading performance at Christmas with its new owners Hammerson. Dundrum commands the third highest retail rents in Ireland, behind Grafton St. and Henry St.
Richard Curran’s pieces this week:
– Trump, in his first major press conference this week, took aim at the US pharma companies operating abroad, threatening an import tax into the US. This poses a threat to Ireland’s pharma industry which contributes c. €1bn in taxes each year. Curran highlights the practical difficulties with Trump’s stance, including having to re-negotiate specific trade agreements, counter tariffs by the EU and the significant replacement costs for the pharma companies if they need to relocate back to the US.
– AIG is considering moving its European HQ to Dublin. While the number of jobs created by this move would not be huge, the potential additional taxes from its assets and the signal it sends from the global insurance giant would be significant.
– The owners of Tara Mines in Co. Meath have found additional zinc reserves at the mine and have extended its production to at least 2026. The owners, Swedish group Boliden, will invest €44m to extend production.
General Motor’s Irish division looks set to expand its operations in Ireland with an additional 100 jobs at its offices in Limerick.
The Irish Auditing & Accounting Supervisory Authority (IAASA) has notified listed companies Arytza, Carin Homes and Permanent TSB of accounting errors in recent financial statements.
Cork-based ad agency H&A Advertising will exit examinership shortly after taking in new investment from the family of director Brian Healy. The scheme of arrangement will see unsecured creditors, totalling €1.2m, receiving 3.5c for every euro owed to them.
Gayle Killilea, wife of developer Sean Dunne, has requested a US court to subpoena Hibernia REIT senior advisor Frank Kenny, reportedly in connection with correspondence between Mr. Kenny and Kevin Nowlan prior to the issuing of demand letters by NAMA to Sean Dunne. At the time the correspondence relates to, Mr. Nowlan was a portfolio manager in NAMA and was managing Sean Dunne’s portfolio with NAMA.
Through a freedom of information request, the Sunday Independent reports that Kennedy Wilson COO, Peter Collins, sent a letter to Finance Minister Michael Noonan warning him of the negative impact changes to the tax code would have on Ireland as a “stable and reliable market in which to invest”.
Geretti Brady, MD of Lloyds pharmacy chain, is to step down in March after spending 16 years with the company. Lloyds is Ireland’s largest chain of pharmacies with over 90 stores.
Median pharmacy group was the largest recipient of fees from the HSE for dispensing drugs and medicines. The company received €1.05m in 2015 from the HSE. Abbey Healthcare received €0.87m and Hickey’s Pharmacy Group received €0.84m.
Wal-Mart is making internal moves in a bid to bolster its e-commerce business so as to better compete against Amazon. Amazon acquired online retailer Jet in September for a reported $3.3bn. Jet founder Marc Lore is now CEO of Wal-Mart’s e-commerce operation.
There is an excellent interview with Peter Barrett, founding CEO of SMBC Aviation Capital. Last year SMBC saw revenues exceed $1bn and its aircraft assets exceed $10bn.
This week Sean Gallagher meets with Conrad Jones, owner and creative director of Dublin-based marketing and graphic design company, Conrad Jones Creative.
Joanna Kiernan interviews Sara Walsh, founder of Bababox. Bababox is a subscription service which delivers luxury hand-picked baby products each month to a subscriber’s home.
Canadian renewable energy fund Brookfield is reported to be planning the sale of some of its Irish assets given the strong interest in the Irish market by other international funds. Brookfield acquired wind farm assets from Bord Gais two years ago and may consider now to be an opportune time to sell.
Sunday Times
Brian Carey’s agenda piece this week:
– Ray Hernan, the former Arnott’s CFO, has taken over the managing director role at the troubled and loss-making Bus Eireann. He is trying to introduce new work practices and has launched an aggressive seat sale. There is also likely to be more subcontracting, which may result in job losses. Bus Eireann’s woes are also in the Sunday Independent; it had loses of €8m in 2016, not including government subsidies which totalled €38m in 2015. Losses are reported to be concentrated in its Expressway long-distance coach operation, which does not receive any government subsidy. Management are considering their options on the closure or restructuring of this division according to the Indo.
– Aidan Heavey is stepping down as chief executive of Tullow Oil and will be replaced by Paul McDade. Heavey led Tullow from minnow status to the FTSE 100, making many shrewd decisions in between. Gavin McLoughlin in the Sunday Independent has an excellent interview with Heavey. Heavey will continue on the board for two years before stepping down. He speaks about continuing to work in Africa after he leaves the company, but will not take up any roles competing with Tullow. Heavey has lined up some charity work and other business work in infrastructure and investment on the continent. Barry J White also has coverage of Heavey’s departure in the Sunday Business Post.
– Michael O’Leary has rowed back on this threat to pull Ryanair out of Stansted. He agreed a deal last week which will increase services instead. Ryanair will fly 20m passengers in and out of the airport this year, a new high.
Profits at online voucher company Groupon’s Irish subsidiary are down 57% from its peak; it recorded a profit of €3.7m in 2012 which had reduced to €1.6m in 2015.
Google Ireland has invested €1.4bn into the Irish subsidiary of its life sciences division as it looks to move more operations to Ireland.
Eamonn Waters, chief executive of Panda Waste, has been given the go-ahead for a 124-bedroom hotel in Dublin city centre. Dublin City Council approved plans for the seven-storey, four-star hotel on Ship Street, beside Dublin Castle. Water’s project is close to the Radisson Blu on Golden Lane which was given permission last month for a new 103-bedroom extension.
Muzinich, a $28bn New York-based fund, is planning to provide up to €100m in private debt funding to Irish SMEs. The fund is opening a Dublin office and will look to lend between €5m and €30m to companies across a broad range of sectors.
Johnson Brothers, one of the biggest distributors of consumer goods in the country, is subject to a takeover approach that could see the business change hands in the next few months, according to documents filed in the CRO. The company which holds the agency to market and distribute Procter & Gamble brands, among others, is part of the STL Logistic Group and employs more than 200 people. The interested party is not disclosed.
The country’s network of local enterprise offices is to showcase the wares of a record 110 business at the annual craft expo at the RDS.
Gabriel Bannigan will replace Seán Ó Murchú as managing director of Bank of Ireland private banking.
The founders of Opsh.com, the online fashion store that raised €1m in investment last year, Grace, Jennie and Sarah McGinn, have resigned after the company failed to raise follow-on investment.
The government’s move to double the amount of money that wealth overseas investors must invest in Ireland to qualify for residency will cause a collapse in investment, according to immigration agents. The threshold has been raised from €500k to €1m. More than €67m has been invested by 130 individuals since the programme was introduced in 2012, with up to 90% of the applicants for the scheme believed to be Chinese. More than 75% of the €67m is estimated to have been invested in healthcare facilities, such as primary care centres or social housing.
Tuli Holdings, the company that runs Costa Coffee, Pizza Hut and KFC outlets in Ireland, recorded profits of €6m and revenues of €76.3m, according to recently filed accounts for year-end January 2016. The company is owned by Scotland-based brothers Raju and Sundeep Tuli. It increased its Irish workforce to 1,405 from 1,293 the previous year.
The founders of Hello .ie, an online broker for life insurance and mortgage protection products, Andrew Collins, Derek Richardson and Geoff Boyle, have invested €400k into the company. The trio founded Hello after selling 123 .ie to insurer RSA for €83m in 2010.
Nick Webb’s inside track this week:
– Former Tánaiste Mary Harney has been retained as a “senior adviser” by lobbying and PR company Hanover. Other former TD’s who have taken up appointments in the private sector recently are Dick Roche, who is an adviser to the Turley family’s Pannonia Ethanol, and former Progressive Democrat Liz O’Donnell, who is advising resources firm Vedanta.
– Alan Cook is retiring from his role as chairman of Permanent TSB and is taking up the role of chairman of British friendly society insurer Liverpool Victoria.
– Former TVC Holdings chief executive John Tracey was one of the key players in Bank of Ireland’s recent buyout of Donal Roche’s asset management business Covestone. The company had €100m under management when acquired. The consideration was not disclosed.
Philip Connolly and Gavin Daly’s business focus piece is on the booming Irish film industry and the high level of investment being made in studio and production facilities.
Gavin Daly’s managing director interview is with Michael Burke, the spritely 69-year old who founded the Chanelle Pharmaceutical group in the 1980s. His daughter is married to Tony McCoy, the champion jockey, and the company is also named after her.
John Vincent, one of the founders of Leon, the health fast food chain which has currently 44 restaurants, mainly in the UK and London, is embarking on US expansion.
Sandra O’Connell has a great piece on some of the country’s emerging female entrepreneurs.
27.9m – The number of passengers handled by Dublin airport in 2016, a year-on-year increase of 11%. @IrishTimesBiz
4% – The predicted rise in prime commercial property rents in 2017, according to @CushWakeIRL. @IrishTimesBiz
1,032 – The number of corporate insolvency cases last year, a year-on-year decline of 2%, according to @DeloitteIreland. @IrishTimesBiz
€11.15bn – The value of food and drink exports last year, a year-on-year increase of 2%. @IrishTimesBiz
€570m – The estimated cost the fall in the sterling had on Irish food and drink exports in 2016, according to @Bordbia. @IrishTimesBiz
61% – The estimated debt as a proportion of Ireland’s economy by the end of next year, down from 71% in 2015, according to @SPGlobal.
€5.7bn – the value of the tourism industry to the Irish economy in 2016, according to @TourismIreland. @IndoBusiness
3.6% – The year-on-year increase in consumer spending for the month of December, according to @Visa’s latest consumer index. @IrishTimesBiz
37% – The UK’s share of Irish exports, a drop of 8% in the last decade. @Entirl @IrishTimesBiz
6% – The expected rise in property prices in Ireland for 2017, according to a survey by @REAIreland. @IndoBusiness