Quinn Group suffers losses of €888m

THE Quinn Group made an operating loss of €888.5 million in 2009, according to its latest set of available accounts.

The loss was mainly due to previously published heavy losses at the Quinn Insurance (QIL) division, and compare to operating profits of €239m in 2008.

Similarly, the group’s pre-tax figures lurched from a profit of €83m in 2008, to a loss of €852m in 2009.

Group turnover fell from €2.2 billion to €1.62bn, while gross sales fell from €2.26bn to €1.8bn.

The group summed up the year’s results as “very disappointing”, but pointed out that QIL, which is due to come out of administration soon and come under the control of US insurer, Liberty Mutual, accounted for €545m of total group operating losses (before loan provisions and impairments of €514m).

Without QIL, the Quinn Group will comprise of four key manufacturing divisions — container glass, plastics and packaging, radiators and construction products. The accounts showed that these businesses delivered a robust performance, albeit showing a fall in combined turnover from €918m to €654m.

QIL recently reported a separate €706m loss for 2009, adding that its 2010 accounts are likely to show an additional annual loss of €160m.

New Quinn Group chairman Patrick O’Neill (Sean Quinn last chaired the overall group in 2009) said that the four divisions, excluding QIL, are well-invested and hold strong positions in their respective fields and are well-placed to grow.

The recently announced restructuring of the Quinn Group’s debts, which permanently removes more than €500m of debt from the manufacturing divisions, will, according to Mr O’Neill, give the group “necessary financial stability”.

“The priority for the board, since April 2010, has been the refinancing of the group’s indebtedness, which at the end of 2009 amounted to €1.34bn and which, quite simply, the group could not service,” he said.

“There will be no job losses from, or related to, this restructuring and it will help to protect jobs,” Mr O’Neill added.


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