Quinn owners set to invest another €10m this year

The three US-based investment funds which own the construction supplies and packaging divisions of the old Quinn Group are set to spend another €10m on the business this year in a bid to support its long-term growth.

Quinn owners set to invest another €10m this year

Brigade Capital, Contrarian Capital and Silver Point Capital bought 80% of Quinn Industrial Holdings in 2014 and have jointly pumped around €20m into the business since then.

The three have given no indication of ending their investment and are set to oversee fresh capital expenditure of €10m this year. The group’s capital investment outlay amounted to €11.5m last year.

Quinn Industrial Holdings yesterday reported a 62% increase in underlying pre-tax profits, for 2016, to €6.8m, with operating profit ahead by 64% at €10m.

It marked the second straight year of underlying profitability since Quinn Industrial Holdings swung back into the black in 2015.

While its packaging business showed good momentum, the group’s figures were driven by continued growth in the construction industry supply arm, which comprises 85% of group activity.

Staff levels also continued to rise, with the group now employing nearly 800 people across operations in Fermanagh, Longford, Cavan and Kent in England.

Around 50% of Quinn Industrial Holdings’s business is conducted in the UK but management remains confident of the British housebuilding industry remaining buoyant this year and said that it will deal with Irish border concerns should they arise as part of the Brexit negotiations.

“The current year has commenced positively for both the construction industry supply and packaging businesses, with robust trading evident in all of our key markets, providing Quinn Industrial Holdings with a firm platform for continued growth and development,” said chief financial officer Dara O’Reilly.

Quinn Group founder Seán Quinn cut his remaining ties with the business last year by stepping down from his position as consultant.

No member of the Quinn family is involved in the business.

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