Saturday 16 December 2017

What it says in the papers: business pages

Michael Cogley

Michael Cogley

Here are the main business stories from this morning's papers:

Irish Independent

* The OECD has weighed into the debate on Brexit with a stark warning that a British withdrawal from the European Union could spark an international financial shock and doubts over the future of the Single Market and EU.

In a detailed report, the Paris-based think tank said a Brexit would cost UK households up to £5,000 (€6,428) in a worst case scenario, as the UK economy would be around 5pc smaller than if it remained in the EU.

* Irish retail brand XL is to open 23 new stores this year as part of its national growth strategy. The move is expected to create around 200 jobs across the country.

XL, which is owned by BWG, the same company that owns Spar, Londis and Mace, has added over 100 stores here over the last four years.

* Dairy giant Glanbia has reaffirmed its 2016 guidance despite revenue from its wholly-owned businesses falling 1.9pc on a constant currency basis in the first three months of the year. On actual exchange rates, the figure was 0.8pc lower.

The company, headed by chief executive Siobhan Talbot said that the revenue figure reflected volume growth of 0.5pc and a contribution from acquisitions of 3.4pc - all of which was offset by price declines of 5.8pc due to depressed dairy prices.

The Irish Times

* Ireland cannot fully prepare for the effects of a British exit from the EU, according to a note sent out to TDs and senators from the outgoing Government.

The State's warning follows a separate hint from Central Bank governor Philip Lane. According to a report in The Irish Times Mr Lane hinted at the provision of emergency liquidity for banks if a Brexit vote carries through.

* The Central Bank has ruled out the possibility of setting limits on mortgage interest rates with governor Philip Lane saying a high evidence threshold will be put in place to warrant a loosening of mortgage loan caps.

According to a report in The Irish Times, Mr Lane warned any move to curtail interest rates could deter new market entrants.

* Irish hotel group Dalata will look at potentially paying a dividend to investors in 2017. The firm's chairman John Hennessey said the issue will have to be considered once its remaining €100m for expansion was used up.

Dalata chief executive Pat McCann also ruled the company out of the running for the Burlington Hotel.

Irish Examiner

* Glanbia's first quarter revenues dipped by 2.5pc as falling milk prices took their toll on the company's intake.

Shares in the company fell by 1.29pc off the back of the trading update, which it presented at its AGM in Kilkenny on Wednesday.

* Shares in Kerry Group fell yesterday as the company reported good business momentum in the face of challenging market conditions.

However, Kerry stood over its full-year guidance and said it is confident of delivering earnings growth of between 6pc and 10pc.

* The main Irish subsidiary of US software and hardware giant Oracle last year paid corporation tax of €39m as revenues topped €8.14bn.

New figures lodged by Oracle EMEA Ltd to the Companies Office show that the firm recorded a pre-tax profit of €109m - a drop of 14pc on the €127.45m in pre-tax profits recorded in 2014.

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