Quinn property unit posts €4m liabilities
A PROPERTY management wing of Quinn Direct closed 2008 with net liabilities of almost €4m after booking multi-million euro writedowns for the second year running.
The property hit is revealed in accounts just filed by Northern Ireland-registered Quinn Direct UK Properties, which is ultimately owned by Quinn Insurance Limited (QIL).
The property offshoot holds an office building that's leased to QIL and "other third parties" and has a "logistics warehousing" facility under construction.
Turnover at the property company slumped by about €200,000 to €1.3m in 2008, but the main pain was felt on the costs line, with a €2m revaluation of the company's assets.
The 2008 year also booked interest costs of almost €2.7m on loans advanced from its parent, pushing full-year losses to €3.9m. The company's directors described both the year's performance and the year-end position as "satisfactory and in line with expectations".
They added that the logistics centre would be completed in 2009, providing "a further stream of rental income", and that the company could be considered a going concern despite the liabilities since the long-term creditors were QIL itself.
Owned by Cavan billionaire Sean Quinn, QIL is one of Ireland's largest general insurance companies and also has a significant presence in the UK.
The company reported operating profits of €86m in 2008, well down on the €192m a year earlier, while €150m was wiped off QIL's investment portfolio.
The 2008 bottom line result, a pretax profit of €83.5m, was significantly better than the previous year's €425m pretax loss, which followed a €692m write off of money loaned to buy Anglo Irish Bank shares.