The former business empire of Fermanagh billionaire Sean Quinn has reported a pre-tax profit increase of 62 per cent.
Quinn Industrial Holdings (QIH) has reported a year of solid progress, which has seen its EBITDA (Earnings Before Interest, Tax Depreciation & Amortisation) by 10% to €18.2m.
This was achieved despite the currency headwinds of a weaker sterling.
The underlying performance of both the Construction Industry Supply (‘CIS’) and Packaging divisions was strong with increased volumes in most product lines. Revenue in constant currency increased, albeit sales on a reported basis of €194.5m, were 4% lower, reflecting the strength of sterling in 2015 and the deflationary impact of weaker currency translation post the Brexit vote mid-year.
Operating Profit increased by 64% to €10.0m from €6.1m in 2015, a robust performance given that more than 70% of QIH’s turnover was generated in the UK where sterling translation was 11.4% weaker than in 2015.
Profit before tax also increased by 62% to €6.8m.
In terms of employment the company has also seen a rise during the year with the average number of employees increasing from 721 to 756 during the year as QIH added production shifts across a number of its operations to meet strong customer demand.
During 2016 the group also continued its capital investment programme, which included investment in the replacement of fleet and mobile plant as well as adding cement storage capacity at its import facility in Rochester, Kent.
Total capital investment during 2016 was €11.5m and further investment is planned in 2017.
QIH chief executive Liam McCaffrey said he was "very pleased" with the 2016 figures
“We are very pleased to have delivered a strong underlying performance in 2016 and to have continued our capital investment programme underpinning competitiveness, efficiency and our export route to market. This progress was facilitated by supportive and engaged staff and a unified sense of purpose to deliver sustainable growth to the benefit of all stakeholders.
Chief financial Officer, Dara O’Reilly added:
“2016 was a strong year for the business with underlying growth across all our divisions leaving QIH well positioned to take advantage of the upturning economic cycle."
