It is hard to see how 2014 can be any worse for the Quinn Group than the past few years, but unfortunately, it seems that it will be.
We have to consider all of the cash injections that the company benefited from in 2013;
Sale of factories and warehouses
+ Sale of land
+ Sale of plant and machinery from the quarry
+ Sale of lorries, dumpers, loading shovels and tarmac machinery
+ Sale of aluminium roof-tile pallets
+ Reduction of stock and spare parts to unsustainable levels
+ Large cash receipts from Quinn Insurance
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= Loss of over €50 million when full interest and correct depreciation are applied.
Since there is very little left that can be sold off, it is very obvious that the company will have to do without this cash in 2014, and will therefore find the going a lot tougher.
As we have reported on this site before, the company are only paying interest on 40% of their debt. How long will this arrangement remain sustainable for the financiers I wonder? It is a far cry from the pre-receivership days, when, not only was interest paid on 100% of the debt, but tens on millions were spent annually on investment.
Of course Paul O'Brien is saying that the losses are as a result of the recession, but again, as we have reported in some detail before, his competitors have grown their profits for the past three years. In addition, anyone with a little knowledge of the glass industry will know that glass is very scarce. The Quinn Group are unable to supply their customers, and even in the strong market that exists, profits are down. This can only be from mismanagement - profits are only a fraction of what they were under the previous management team.
I think anyone following this story will know what the priority is for Mr Million Euro Salary.
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