Aventas has loss on costs of disposal and writedowns

Pre-tax losses at the former Quinn manufacturing group last year rose 76-fold to €301.3m due to exceptional costs. The group known as the Aventas Manufacturing Group is made up of four core businesses, container glass, construction industry supplies, plastics and packaging, and radiators.

Aventas is 75% owned by former creditors, mainly banks and hedge funds, with the remainder held by its principal former lender, the Irish Bank Resolution Corporation in liquidation.

However, the losses arise from the breakdown of the group, which included the sale of its four trading divisions that has contributed to €755m being returned to creditors since 2011 and all of its senior debt having been repaid in full.

The accounts filed by Gortmullan Holdings Ltd show revenues at the group last year rose 4%, almost €30m, to €693.8m from €666.86m.

Chairman Mike McTighe said: “Our financial statements make for very difficult reading in what was operationally a very successful year for the group as a whole.

"This is due to the technical requirement to present the financial statements on a break-up basis as we have completed the sales of all of the operating divisions with two concluding post December 31, 2014, year end.”

Operating profits rose €800,00 to €27.8m, while net cashflow rose €33.8m to €75.2m, he said. Numbers employed by the group last year increased from 2,630 to 2,766, with staff costs of €121.28m.

Pay to two executive and five non-executive directors last year doubled to €4.16m from €2.3m.

According to the directors’ report, the principal drivers behind the loss included accounting losses on disposal of subsidiaries of €64m; an increase of €133.6m in the amount ultimately payable to tranche C lenders; a write-down of €88.3m on its Encirc assets; and restructuring costs of €4.8m.