DISASTROUS AUDITED ACCOUNTS FOR QUINN GLASS (2013)

DISASTROUS AUDITED ACCOUNTS FOR QUINN GLASS (2013)

While most people may have thought that Quinn Glass was the only profitable part of the Group since its takeover in April 2011, recent audited accounts lodged in the Companies House, proves that even it is in serious trouble, and may be struggling to survive. 

Profit margins for the financial year 2013 were 1.2%, on a stagnant turnover of £236.8 million STG. This is after;
• paying interest on less than two thirds of the company’s own recently announced valuation;
• valuing raw materials and consumables at more than £25 million STG, when a value of £10 million STG would be more accurate;
• valuing finished stock at £34 million STG, which again, is grossly inflated.

If an appropriate figure was used for these items, the company would have incurred a loss of between £ 25 - £30 million STG. Of course it’s worth noting that the auditors who prepared these accounts were the same auditors who prepared the Anglo Irish Bank accounts for many years prior to its nationalisation.

Apart from the above figures, a close scrutiny of the accounts would show that the company is on its knees. Creditors have increased by two thirds, from £12 million STG to £20 million STG; they have increased their leasing payments by 700%, by not being in a position to pay for small items of plant and machinery. Most shamefully of all, because of the mismanagement of the company in recent years, they have been able to claim back tax that had been paid on profits earned in prior years, when the company had been properly managed.

Based on all of this, and the fact that Quinn Glass historically had profit margins that were 50% higher than those enjoyed in the rest of the business, is it reasonable to assume that considering that the Quinn Group accounts showed losses of £25 million STG, including asset sales, that the total losses for the year would be in the region of £100 million STG?

Irrespective of the debate that could be had about the losses which they themselves admit to, and which have been outlined here, one way or the other, surely it can’t continue for much longer.