Bank forgives €2.4m debt at Morgan Fuels

Operating profits at the fuel group owned by the man at the centre of the donations controversy that derailed Seán Gallagher’s presidential bid in 2011 increased 29-fold last year to €3.62m.

Accounts just filed by Hugh Morgan’s Morgan Fuels Ireland Ltd with the Companies Office show that the Dundalk-registered group enjoyed the sharp increase in profits after revenues increased by more than €100m — from €143.5m to €244.4m.

A major factor behind the rise was the accounting period to the end of Sept 30, 2013, covering an 18-month period compared to the prior 12- month period.

A property write-down of €2.9m and interest payments of €601,768 contributed to pre-tax profits totalling €33,188. This followed a pre-tax loss of €1m in 2012.

A contributory factor behind the sharp increase in operating profits was €2.4m in bank debt forgiveness. The bank that has forgiven the debt is not identified, though the group’s bankers are listed as Bank of Ireland and Bank of Scotland.

According to the directors’ report “in line with expectations, sales have increased compared to the previous period, even adjusting for the differing length of the accounting period”. The increase “is despite a high level of competition in the market place and the current depressed economic climate”.

The report states “gross profit margin for the group has increased from 2.5% in 2012 to 2.9% in 2013, despite the highly competitive market in which the group operates in”.

During the presidential campaign, Hugh Morgan alleged that Mr Gallagher had collected a cheque from him at his Morgan Fuels headquarters. On RTÉ’s The Frontline, Pat Kenny read out a ‘bogus tweet’ that claimed the man that Mr Gallagher took the cheque from would appear at a press conference the following day.

Mr Gallagher stumbled and appeared to concede that he could have received an “envelope”. He categorically denied the allegation subsequently. Mr Gallagher instituted legal proceedings against RTÉ concerning the controversial tweet and The Frontline debate.

Morgan Fuels employs 52 people and the profit last year takes account of non-cash depreciation costs of €444,578. Staff costs totalled €2m with directors’ remuneration totalling €81,238. The firm had net assets of €303,451 at the end of September last.