| Type | Privately Owned |
|---|---|
| Industry | Financial Services, Building Construction & Manufacturing, Hospitality & Property Management |
| Founded | 1973 |
| Headquarters | Derrylin, County Fermanagh, Northern Ireland |
| Key people | Sean Quinn, Former Chairperson |
| Products | General Insurance, Healthcare, Container Glass, Domestic and Specification Radiators, Cement, Tarmac, Thermal Blocks, Rooftiles, Prestressed Concrete, Polyurethane & Polystyrene Insulation, Packaging, Power, Hotels and Property |
| Employees | 8,000 - 2009[1] |
| Website | www.quinn-group.com |
The QUINN group is a business group headquartered in Derrylin, County Fermanagh, Northern Ireland. The privately owned group has ventured into cement and concrete products, container glass, general insurance, radiators, plastics, hotels, and real estate. It was formed by its Chairman Sean Quinn in 1973, developing from a small quarrying operation in Derrylin into the large organization, employing over 8,000 people in various locations throughout Europe.
Since 2004, the Group saw great expansion throughout Europe, with radiator and plastic manufacturing plants in the United Kingdom, Germany, Belgium, France, Spain and Slovakia. The QUINN group property portfolio also includes hotel and business centres in Poland, Bulgaria, Ukraine, Turkey, and Russia. Quinn-direct Insurance has commenced trading in Belgium and the Netherlands and work is currently underway on a new chemical facility in Leuna, Germany. Its first venture into the cement industry was in 1989. Its general insurance arm, QUINN-direct in was launched in 1996. The commissioning of its first container glass plant was in 1998 and the acquisition of the health insurer Bupa Ireland[2] Ireland took place in 2007.
On 30 March 2010, following an application by the Central Bank of Ireland, the High Court appointed joint provisional administrators to Quinn Insurance Limited.[3] According to the Irish Independent, eight subsidiaries of Quinn Insurance provided guarantees of €1.2bn to cover Quinn Group’s debts, prompting the Central Bank to seek the appointment of provisional administrators in the High Court.[4] The Quinn Group has taken action to counter the moves by the Central Bank, mobilising its employees into street protests, financial discussions with its creditors, in an effort to seek a resolution to the uncertainty created by the appointment of provisional administrators to Quinn Insurance.[5] On 15 April 2010, the Irish Times reported that Quinn Insurance decided not to fight the appointment of a permanent administrator.[6] On 23 April 2010, employees of the insurance branch of the company were told that around 800[7] jobs out of the 2,400 strong workforce would be lost. The decision came in light of the Financial Regulator's decision to partly restrict Quinn Insurance's dealings in the UK. Staff were told that the full details regarding the potential job losses would be revealed to them at the end of the month.[8]
In April 2011 a share receiver was appointed by Anglo Irish Bank over the holding company of Quinn Group, taking control of the group from the Quinn family. The family is contesting the appointment of the share receiver.
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As a private company registered in Ireland, Quinn Group (ROI) Limited files annual statements with the Companies Registration Office. The last accounts were filed in October 2009.[9] In the latest filing, the company reported a net profit of €68.9 million for the year to December 2008, based on gross sales of €2,264.4 million. Although Quinn Group has reported an operating profit in its two main divisions, Insurance and Non-Insurance (e.g. Cement, Property) for each of the last 3 years, the company was impacted by significant provisions in 2006 and 2007.
| Dec 2006, € millions | Dec 2007, € millions | Dec 2008, € millions | |
|---|---|---|---|
| Gross Sales | 1,639.8 | 2,115.5 | 2,264.4 |
| Insurance Turnover | 683.8 | 982,1 | 1,128.1 |
| Insurance Operating Profit | 160.8 | 192.1 | 85.8 |
| Non-Insurance Turnover | 768.3 | 898.4 | 1,105.7 |
| Non-Insurance Operating Profit, before Provisions | 95.5 | 55.7 | 279.9 |
| Profit-Before Provisions | 376.1 | 302.0 | 194.8 |
| Loan Provisions | n/a | -753.1 | -125.9 |
| Net Profit | 376.1 | -451.1 | 69.9 |
Despite the reported profit of €69.9 million in the year to December 2008, Quinn Group's shareholders equity fell by over €220 million in the year, partly due to a €200 million distribution and other recognized losses that were not applied to the Income Statement but appeared directly in shareholders equity. Over the 3 year period to December 2008, Quinn Group revalued upward its assets and investments by a net cumulative €306 million, which positively impacted shareholders equity. Over the same period it took a charge to equity of a net cumulative € 312 million due to adverse exchange rate movements.
| Dec 2006, € millions | Dec 2007, € millions | Dec 2008, € millions | |
|---|---|---|---|
| Shareholders Equity, 1st Jan | 930.7 | 1,319.7 | 974.1 |
| Profit in the financial year | 376.1 | -451.1 | 68.9 |
| Revaluation in the year | 4.4 | 137.9 | 163.4 |
| Capital contributions (distributions) | n/a | n/a | -200.0 |
| Gain (loss) in pension scheme | 2.6 | 1.4 | -8.7 |
| Change in deferred tax asset | -.6 | -.0 | 1.5 |
| Exchange Rate gain (loss) on investments | 6.5 | -33.8 | -285.3 |
| Tax on exchange adjustments | n/a | n/a | 39.7 |
| Shareholders Equity, 31 December | 1,319.7 | 974.1 | 753.6 |
Further complicating the financial picture of Quinn Group's financial statements is a collection of other related party transactions. In the year to December 2008, Quinn Group reported an income of €150 million from the Quinn family and related entities, for services provided by the Group including: "the identification of sites for acquisition and development, the negotiation of purchase price, the negotiation and arrangement of financing, the engagement of developers and related professional advisors and the ongoing monitoring of the projects through the construction phase." For accounting purposes, these incomes, totaling €221 million in 2008, would have been included in the income statement that lead to the reported profit of €68.9 million in the year to December 2008.
| Dec 2006, € millions | Dec 2007, € millions | Dec 2008, € millions | |
|---|---|---|---|
| Sale of good and services to the directors and related undertakings | 6.4 | 15.5 | 2.4 |
| Income from related undertakings for property development services | n/a | n/a | 150.0 |
| Purchase of goods and services from related undertakings | n/a | n/a | 30.8 |
| Interest charged to related undertakings | n/a | 69.9 | 37.6 |
| Sub-total income from related parties | n/a | 85.3 | 220.8 |
At the end of December 2008, the Quinn family and related undertakings had loans of €891.3 million to Quinn Group (ROI) Limited. The annual report for 2008 states in the "related party transactions" section that Quinn Group had taken a total of €888m of provisions related to loans given to family controlled property companies, investment and finance companies, and other family controlled companies. Of these provisions, €785.6 million related to the investment and finance companies which includes Quinn Finance Holdings, the entity that owned an economic interest of 15% in Anglo Irish Bank. Provisions of €888m accounted for against the €891m of loans, may indicate the family and the related entities may be unlikely to repay over 99% of these loans to Quinn Group.
The manufacturing division's main activities are the manufacture and supply of cement and concrete products including, rooftiles, prestress flooring, Quinn-lite blocks, polystyrene insulation products, tarmac and general quarry products. QUINN Quarries are involved in the extraction and processing of sand and gravel since the 1970s,[10] the Quarries Division of the Group still produces these products today. Quarry stone, washed sand, gravel, ready mixed concrete and concrete blocks are all produced at Quinn plants. The second quarry in Williamstown, Co. Galway was founded in 1977 to supply Galway and the surrounding counties with quarry and concrete products.
QUINN Rooftiles commenced production in 1982 with a purpose built factory at Gortmullen, Derrylin. This first plant was commissioned in 1982. However due to market demand a new factory built on the existing site commenced production in 2001 and was expanded again in 2005. Quinn Rooftiles maybe considered as a major supplier to the construction sector throughout Ireland. QUINN Prestressed began producing prestressed concrete products in 1984. All of these products are used in a range of domestic and industrial building applications.[11] QUINN Lite produces lightweight thermal blocks. The blocks are for use in the construction internal and external walls above and inner and outer leaves of cavity walls. QUINN Lite Pac, Granard, Co. Longford was founded in 1975 to produce and distribute expanded polystyrene thermal insulation products for the construction industry. The product is an expanded polystyrene board for insulating floors. A large proportion of this product is used in the insulation of commercial, industrial and domestic buildings.
QUINN Therm, at Scotchtown, Ballyconnell, Co. Cavan was commissioned in October 2004 to produce and distribute rigid polyurethane thermal insulation products for the Irish and UK market. Quinn Therm produces rigid foam board for cavity wall insulation. QUINN Tarmac was established in 1994 to produce a range of blacktop products. QUINN Cement has been in production since 1989 at its Derrylin site using local raw material from the quarry facilities.[12] Given the increasing demand generated from the construction sector over the years, a second plant was commissioned in 2000 in the northern part of the Republic of Ireland, outside the small town of Ballyconnell and close to the Northern Ireland border.[13]
In May 2004, the Quinn Group acquired the Barlo Group PLC.[14] This led to the announcement of the formation of QUINN Plastics on January 1, 2005.[15] Barlo Plastics was created in 1998 by the merger of 4 plastic sheet producers and further expanded by another four sheet extrusion companies in 1999 and 2000. The company’s main business lies in the production of domestic and industrial transparent plastic sheet products, including building and construction, interior design and safety.[16] Quinn Plastics produces 90,000 tonnes annually and employs over 700 people. Headquartered in Derrylin, Co. Fermanagh the company has operating facilities in Belgium, France, Germany, Spain, Slovakia, the UK and the Czech Republic. In 2005, the company purchased a start up business, known as Polyex in the UK which is now the base for their Alfreton production site.[17] Quinn Plastics provide products for many different applications
QUINN Chemicals is currently constructing a plant to manufacture Methyl methacrylate (MMA) in Leuna in eastern Germany. However, construction has been put on ice as of January 2009 due to 'heavy cost overruns' and 'deteriorating market conditions'.[18] Some work is continuing on the site which will be ramped up towards completion when world market conditions improve. At full capacity, the new plant will produce approximately 100,000 tonnes of MMA a year for the world market. The plant will produce many different products including glazing, sanitary products, lightning, display, and household goods.[19]
QUINN Packaging (trading as Barlo Packaging until 2004) has been servicing the food industry with rigid packaging since the 1980’s from its plant in Newbridge, when the dairy spreads / yellow fats markets initially emerged.[20]. Quinn packaging also has a factory in Ballyconnell, built in 2006, that produces food trays, film and thin gauge sheet for the food packaging industry.
As a large user of electricity within its manufacturing base, QUINN Power constructed a five megawatt wind farm in 1995 on the Slieve Rushen Mountain, which nestles behind the core-manufacturing base of the Group at Derrylin. This was further complemented in 2004 by the addition of a 13.5 megawatt wind farm at Snugborough, Ballyconnell, Co. Cavan.[21] The power generated is fed into the National Grid. The Group is in the planning stages of further developments in this area.[22] These are set to include a €300 million , 450 megawatt combined cycle gas turbine in Co. Louth which has been approved & fast tracked by An Bord Pleanala under the states Strategic Infrastructure Bill. It will be one of the biggest power stations ever built in Ireland and will supply up to 8% of Irelands peak demand and is set to come online in 2010 despite the slump. Plans for a similar project in Co. Galway are at a 'pre-consultation stage'.[23] Quinn Environmental also operate a small 500 kW Landfill Gas utilization plant at their Lisbane landfill site in Tandragee, Co. Armagh which supplies energy to the NIE grid.[24]
In 1998, the Quinn Group moved into the container glass market, with the establishment of QUINN Glass, which manufactures glass containers for the food and beverage industries with operations in Ireland and the UK.[25] The first plant went into production at the end of 1998 producing a full range of flint, green and amber containers. The plant is based in Derrylin and employs over 370 staff with an annual production capacity of 720 million containers. This is expected to increase to 830 millions units in 2008 with the completion of a furnace rebuild at the plant. Quinn Glass are one of only a handful of plants worldwide where bottles can be manufactured and filled on a single site, it features one of the largest automated warehouses in Europe, capable of handling 282,000 pallets of filled and unfilled glass containers.[26]
In 2005, Quinn Glass expanded, and built a second plant at Elton, Cheshire creating over 550 new jobs.[27] The glass container plant in Elton is one of the most sophisticated in the world, producing 20 percent of glass container requirements in the UK.[28] The site provides a comprehensive glass packaging, filling and distribution service for the drinks industry. The facilities at the plant include a beverage filling hall, warehousing, two glass melting furnaces and 13 production lines. The capacity of the second plant is currently 1.2 billion units,[26] with production capacity of both plants estimated to be 2.4 billion units in 2008. The plant has five lines capable of bottling a total of 400 bottles of wine, or 1,000 bottles of beer a minute. Having manufacturing and bottling on the same site can reduce costs and keep prices competitive. By offering bottling services, there is the potential for glass makers to win more business as an overflow plant in times of high demand, and it is as a contract packing operation that the greatest benefits from bottling lines are likely to be had. However, the plant was constructed without the correct planning permission, and, on 8 April 2009, the High Court ruled that the plant should be demolished.[29] Quinn have announced their intention to appeal the decision.[30]
QUINN Radiators is one of Europe's leading producers of domestic and specification radiators with production facilities in Ireland, the UK and Belgium. The production facility in Leigh in the UK produces the 'roundtop' range whilst the production facility in Grobbendonk, Belgium, produces the 'compact' range. The division's interest in the specification radiator market is represented through the Merriott brand based in Clonmel, Co. Tipperary, Ireland.[31] In May 2004, the Quinn Group acquired the Barlo Group, this led to the announcement of the formation of Quinn Radiators on January 1, 2005.[32] At the start of 2007, a new radiator facility went into production in Newport, South Wales. This major investment will create the most modern and efficient radiator plant in the world, with the creation of nearly 500 jobs.[33] Not only will this Quinn plant be the largest domestic radiator plant in the world, but the site will also host the company's European HQ operation for the division. Quinn Radiators plans to reach production of four million radiators a year at its new European headquarters in South Wales by 2008.[34]
QUINN Direct Insurance Limited is an Irish based general insurance company that was established in 1996 by the Quinn Group.[35] The company’s Head Office is based on the Dublin Road, County Cavan, and employs over 1700 staff at offices in Cavan, Enniskillen, Dublin, Manchester and London. Quinn Direct is the only privately owned indigenous insurance company operating on the island (many of the players in the insurance market, both in Northern Ireland and Ireland are subdivisions of larger multinationals).[36] The company’s main business lies in the provision of a range of general insurance products including car insurance, van insurance, motorcycle insurance, Home insurance, liability and commercial property insurance. Quinn Direct has currently over 700,000 customers and is the second largest insurer in the Irish Insurance market.[37]
After its inception in 1996, the company expanded and opened an office on O’Connell Street in Dublin in 1997. Also, in March 2003 the Minister with responsibility for Enterprise, Trade and Investment, Ian Pearson announced the opening of the new offices in Enniskillen.[38] This was followed by the announcement of the purchase of an 11 storey office block in Blanchardstown in April 2003,[39] with the subsequent official opening of the Q Centre by Taoiseach Bertie Ahern in September 2004. The company since moved into the UK Commercial business, where it has been operating through its Salford Quays office in Manchester since 2003.On the 31st August 2006, the minister for Enterprise, Trade & Employment, Micheál Martin, announced the creation of 1000 new jobs with the development of a new office facility in Navan, County Meath.[40]
In October 2008, the Irish Financial Regulator required Quinn Insurance Limited to pay a monetary penalty of over €3 million for failure to notify the Regulator prior to providing loans to related companies.[41]
QUINN Life, Launched in January 2000,[42] its Head Office is based on the Dublin Road, County Cavan. Quinn Life offers financial services to customers in Ireland, and the company’s business includes investments, savings, pensions and retirement plans. QUINN-life offers pensions and savings under the Freeway brand.[43]. In February 2007, QUINN Healthcare entered the Irish health insurance market with the completion of its takeover of BUPA Ireland Limited's business. The new company will be known as Quinn Healthcare.[44] The newly formed QUINN-healthcare operation now employs over 300 personnel and has a membership base of 445,000.[45]
On 30 March 2010 Quinn Insurance was placed into compulsory administration by the Irish Financial Regulator[46], after breaching EU Solvency requirements. As a result it was banned from continuing business in the UK, although it is still free to transact business in Ireland. On 15 April 2010, the Irish Times reported that Quinn Insurance decided not to fight the appointment of a permanent administrator.[6]
The Quinn Group currently have nine hotels located throughout Ireland, the UK and Europe.[47] The list of current hotel properties includes:
The Quinn Group also operate a number of public houses including; the Cat and Cage, Messrs Maguire, Q-Bar, the Shamrock Lodge, and Barge Inn all in Dublin, as well as Quinn's, in Cambridge. The group also own the Iveagh Fitness Club, originally built as the Iveagh Trust Baths in 1905.
QUINN Property is a division of the international Quinn Group which specialise in the development and management of commercial real-estate, for lease in a number of markets across Europe.[48] The Quinn Group is also considering investment in India, and is about to open an office in the country. It is considering several locations, but is expected to opt for Hyderabad, which is regarded as an up-and-coming location for high-tech multinationals.[49] Current properties in the Quinn portfolio include, the Leonardo Business Centre and Univermag shopping centre in Ukraine, the Kutuzoff Tower and Caspiy Business Centre in Moscow, Kazan Logistics Park in Kazan, the Prestige Mall in Istanbul, Turkey and the Russian DIY store Stroiarsenal in Yekaterinburg.
In 2007 the QUINN Group applied for planning permission for natural gas-fired power stations at Toomes in Louth and Toherroe, Co Galway, to generate 450 and 400-450 megawatts respectively. These would be among the biggest power stations ever built in Ireland.
Planning for the station in Toomes was granted on 30 May 2008 by An Bord Pleanála as one of the first cases under the Strategic Infrastructure Act 2006 against the Inspector's recommendation, who argued that "the proposed development would be a discordant and incongruous feature in the local rural landscape, would contravene materially the Development Plan and would therefore be contrary to the proper planning and development of the area."[50]
On 30 March 2010, following an application by Ireland's Financial Regulator, the High Court appointed joint provisional administrators to Quinn Insurance Limited.[3] According to the Irish Independent, eight subsidiaries of Quinn Insurance provided guarantees of €1.2bn to cover Quinn Group’s debts, prompting the regulator to seek the appointment of provisional administrators in the High Court.[4] In total the Quinn family is estimated to have €2.8 billion of loans to Anglo Irish Bank and the Quinn Group has an additional €1.2 billion of loans. Of these circa €780m need to be re-financed this year.[51]
According to the Financial Times, a number of UK based Insurance companies had warned regulators over a number of years that they believed Quinn Insurance's property and casualty business was unsustainable.[52] The FT stated that a number of London-based firms had written to the UK Financial Regulator, the FSA, stating that "no insurer could systematically charge premium rates that were often significantly lower than all its rivals over an extended period and remain viable". Both the UK and Irish regulators refused to comment on the story. However, the Irish Regulator, has directed the provisional administrators to ensure that Quinn Insurance ceases writing new business in the UK to prevent the company "suffering further financial losses from its currently unprofitable UK business".
Given the magnitude of the loans to Anglo Irish Bank the company was reported to be considering a €700 million financial rescue of the Quinn Group.[53] The plan, would see €150m injected into Quinn Insurance and €550m would be used to pay off bondholders. Anglo Irish Bank would become majority shareholder in the Quinn Group.
The Quinn Group took action to counter the moves by the Financial Regulator including the mobilisation of its employees into street protests.[54], The Group furthermore has rejected press speculation that the Group needs €700m of financing.[55] Instead the Group estimates that a cash injection of between €100m and €150m is required. refusing to speculate on the need for a €550 million payment to bondholders, it noted that a re-financing, if it occurred, would not necessarily increase the overall debts of the Group.
On 12 April 2010, the Financial Regulator and Quinn Group were due in the High Court. The decision on a permanent appointment of administrators was postponed by one week, following a last minute submission of documents by the Quinn Group.[5] The company pledged to work hard to seek a resolution to the uncertainty created by the appointment of provisional administrators to Quinn Insurance. Quinn Group appointed Talbot Hughes McKillop, a specialist firm providing expertise for financial and operational restructurings to help the group work through its options.
On 15 April 2010, the Irish Times reported that Quinn Insurance decided not to fight the appointment of a permanent administrator.[6] According to RTÉ, Quinn Insurance believes it may have a better chance if it were dealing with a full-time administrator, and has increasingly been concerned about the damage it is suffering as a result of the ban on it doing business in the UK.[56]