QIH 'optimistic' ahead of Brexit as profits rise to £6m
Quinn Industrial Holdings (QIH), part of Sean Quinn's former manufacturing empire, says it remains optimistic for its future despite Brexit. Some 70% of the company's revenue was generated in the UK last year, with 50% made in Britain.
The business's core operations straddle Co Cavan in the Republic and Derrylin in Co Fermanagh.
The group released results for 2016 yesterday, which showed that its earnings before interest, tax, depreciation and amortisation rose 10% to €18.2m (£15.5m), while pre-tax profits jumped 62% to €6.8m (£5.8m).
Revenue declined, however, by 4% to €194.5m (£166m). Revenue fell on a reported basis due to the relative weakness of sterling in 2016, compared to 2015.
Quinn Industrial Holdings' (QIH) operations comprise the packaging and construction industry supply businesses that were once part of the Quinn Group.
The units were acquired in 2014 from Aventas.
The buyer was QBRC, a company that includes a group of former Quinn executives, and which was backed by existing Aventas financiers, including Brigade Capital, Contrarian Capital and Silver Point Capital. The former Quinn executives involved in the buyout include Liam McCaffrey, who is now chief executive of QIH.
Mr McCaffrey said the group had continued its capital investment programme in 2016, underpinning its competitiveness and efficiency.
QIH's capital investment programme totalled €11.5m (£9.8m) last year, and saw the company replace fleet and mobile plant, and add cement storage capacity at its import facility in Kent. Its packaging division also installed new equipment.
Mr McCaffrey said that Brexit does pose challenges and that the firm will continue to assess the UK's EU exit negotiations.
"Whatever the outcome of discussions between the EU and the UK, our focus is on those factors which fall within our control and ensuring an efficient supply chain to the UK mainland, which accounts for some 50% of our sales," he said.
The group, which employs 777 people, added it's "optimistic" for its future despite the Brexit threat. The group's plastics division supplies all the major UK supermarket chains.