Dear Reader,
You are receiving this mail every week as we see you as a key partner and we look forward to continuing to enjoy our journey with you over the decades ahead.
Please find below this week’s newsletter covering the latest M&A, company performance, fundraisings and executive moves.
Last Friday night we slept rough for the Focus Ireland Shine a light campaign and got lucky with a dry night.
Deal Details: Accountancy firms and fellow DFK International members Crowleys DFK and Anne Brady McQuillans DFK have announced they are to merge on 1 January 2020.
The amalgamated firm, which will operate under the Crowleys DFK name, will see Anne Brady McQuillans DFK partners Natalie Kelly and Niall Grant, along with their team of 22 staff, move to Crowleys DFK’s existing Dublin offices at College Green.
Advisers: None mentioned
Renatus Comment: With a combined annual fee income of over €8 million, 110 staff and ten partners, the merger consolidates the firm as one of Ireland’s leading indigenous accounting, tax and advisory firms.
Source: Press Release by Grant Marketing
Deal Details: Canadian group Northland Properties acquired The Portmarnock Hotel and Golf Links for about €50m.
The north Dublin property includes the former family home of the Jameson whiskey distillers and boasts a links golf course that is frequently cited as being among the best in Ireland.
Northland Properties, established by billionaire Bob Gaglardi, own properties across Canada, the US and UK. Portmarnock Hotel is its first acquisition in Ireland. The property was sold by US property giant Kennedy Wilson, which also owns the Shelbourne Hotel.
Advisers: Patrick Quinlan and Diarmuid Mawe of Maples provided legal advice on this along with Newcastle-based firm, Muckle
Renatus Comment: Kennedy Wilson may just farm the Shelbourne or this could be an indication that they are taking profit on their hotel holdings and maybe they will sell the Shelbourne soon.
Source: Irish Independent
Deal Details: Belfast-headquartered IT service provider Novosco is set to join the Munich-based CANCOM Group.
Novosco was founded by Northern Ireland entrepreneurs Patrick McAliskey and John Lennon. It employs around 300 people, mostly based in Belfast.
Its customer base include a wide range of public, private and voluntary sector organisations including several large UK NHS Trusts and housing associations.
In addition to the acquisition, it was announced that John Lennon, co-founder and current sales director of Novosco, will take over as joint managing director of CANCOM UK, with Martin Hess who is currently managing director of CANCOM UK. Patrick McAliskey, currently managing director of Novosco, will continue to be a shareholder of and advisor to CANCOM UK.
Advisers: None mentioned
Renatus Comment: The reported Enterprise value was £70m. This business was founded in 2007 so anybody worried about a turn of the economy or that we are top of cycle should use this as an example that great businesses can be built and expanded during a recession.
Source: Novosco Press Release
Kilkullen Kapital Partners to acquire Irish Studio Media Publishing
Deal details: The owner of the Sunday Business Post has entered exclusive talks to buy the publisher of the Irish Tatler magazine, with a deal expected before the end of the month.
It is believed that a period of exclusivity between the parties has been agreed, and a target has been set to close the deal before the end of the month.
On completion the titles will come together under Post Publication Limited.
Ross Little of DWF Dublin is acting as a legal adviser for Irish Studio Media Publishing.
Source: Irish Times
Bank of China leads bidders to acquire Goodbody
Deal details: Bank of China is understood to be leading bidder for Goodbody Stockbrokers.
Goodbody is being sold by Kerry-based financial services group Fexco, which owns 51 per cent of the business, and the brokerage firm’s management and staff, who hold the remaining 49 per cent.
Goodbody’s larger rival Davy also remains in the mix and Irish Life is the final short-listed bidder, though according to sources it is a distant third in the race.
Source: Irish Times
We in Renatus believe that more important than the deals are the people and we have teamed up with leaders in this field Korn Ferry to provide you details of key recent executive and board level appointments
DALATA, the Irish hotel group appoints new Independent Non-Executive Director
DALATA, the Irish hotel group, has appointed Elizabeth McMeikan to its board as an independent, non-executive director. Ms McMeikan is currently a senior independent director at UK pub giant JD Wetherspoon. Dalata, the Pat McCann headed group whose brands include the Clayton and Maldron hotels, is currently developing nine new hotels which will open over the next three years. Having spent her earlier career at Colgate-Palmolive, Ms McMeikan then took up a role with Tesco, where she established Tesco Express in 1994. In 1997, Ms McMeikan was appointed Tesco stores board director for change management and human resources. Today, she is also a senior independent director at UK-based student accommodation provider Unite Group. She also chairs the board’s remuneration committee. In addition, she is a non-executive director at food company Fresca Group.
UK funds firm Merian hires for Dublin office before Brexit
UK-based fund manager Merian Global Investors (MGI), formerly known as Old Mutual Global Investors, has secured four senior hires for its new Dublin office, which opens in two weeks’ time as the firm advances plans to prepare for Brexit. It has hired Link Fund Solutions Ireland’s managing director, Paul Nunan, to become its country head for Ireland. The new Irish unit has also hired KPMG Ireland associate director for financial services audit Geraldine Gleeson as the financial controller, while MGI’s current head of legal and compliance for its Asia-Pacific business, Irishman Shane O’Sullivan, is transferring to head up compliance and enterprise risk in Dublin. Funds specialist Ross Allen, who was hired by Legal and General Investment Management (LGIM) last year as it built up its Dublin base ahead of Brexit, is set to join MGI as a senior investment risk manager.
BMW Ireland to appoint new managing director
Paulo Alves, managing director of BMW Ireland, is to move to the UK to become head of its motorcycle division. He is to be replaced by BMW UK’s retailer development director Kevin Davidson, a 24-year veteran with the company. His previous roles include general manager of used cars at BMW UK. He was also a non-executive director of BMW Park Lane. Mr Alves, a chartered engineer, took on the Irish role in 2014. Recently he has overseen a reorganisation of the Irish operation, with the departure of several members of staff.
Naomi Staff Takes Over as MD of Core Research
Core, Ireland’s largest marketing communications company, has announced the appointment of Naomi Staff as managing director of its research practice. Ms Staff has over 11 years’ experience in market research and joined Core in 2014 as research director. Prior to this, she was associate director of Kantar, formerly Millward Brown.
TBWA\Dublin Strengthens Creative & Strategy Teams With New Hires
TBWA\Dublin has made a number of major senior appointments to its strategy and creative departments including that of Mandy Leontakianakis who joins the agency as chief strategy officer and Des Creedon who has been promoted to executive creative director. Mr Creedon joined TBWA\Dublin from Publicis Dublin in 2014 having previously worked at McConnell’s and DDFH&B. In addition to these new hires both Yvonne Caplice and Aleesha Tully are being promoted with Ms Caplice taking on a business director role while Ms Tully takes a strategy director role as part of Ms Leontakianakis’ team.
EBITDA is an accounting term and is often the best indicator of profitability in non-capital-intensive businesses before financing and tax are considered. In capital-intensive businesses EBIT or EBITDA less average Capital Expenditure are often better measures. YoY is an acronym for the year-on-year movement in turnover, EBITDA, etc.
Quality Recycling Limited is a leading waste management and recycling company in the South East of Ireland. Based in Co. Tipperary, Quality Recycling offers domestic wheelie bin services as well as commercial waste management services in both South Tipperary as well as Co. Waterford. In Fy18, the company had a stable performance with revenue remaining relatively flat at c. €11.3m although EBITDA increased by 15.4% to c. €2.2m as gross margins increased from 30.2% to 33.6% and admin expenses decreased slightly. The company employed an average of 88 people in FY18, down from 99 the previous year. Cash increased by c. €625k after the company invested c. €1.2m in CAPEX (c. €514k in Plant and Machinery and c. €673k in new Motor Vehicles) while also making a c. €490k repayment of borrowings leaving a cash balance on the balance sheet of c. € 1.1m against a debt balance of c. €1.1m also. Net assets for the year stood at c. €4.2m, up from c. €3.0m the previous year.
Based in Cork, M & J Kelleher Limited is an oil delivery company that has been in operation since 1962. Over the past 50 years, the company has grown from one oil truck to a modern fleet of twenty-one tankers making deliveries throughout the Cork and Kerry region. In its most recent financial year, the company saw revenues rise by 20.1% to c. €44.2m while EBITDA increased significantly by 42.2% to c. €1.2m. The jump in EBITDA can be attributed to the increase in revenue and well managed admin expenses. The company employed an average of 39 employees in FY18 at a cost of c. €1.7m. Cash increased by c. €367k after significant working capital movements as well as a c. €64k purchase on tangible assets. The company also made a c. €9k payment towards finance lease liabilities leaving a positive net cash balance on the balance sheet of c. €1.3m and no debt. The company is 100% owned by Gerard Kelleher.
A.W. Ennis Limited, which trades as Erin Farm Feeds, is a manufacturer of coarse Krunch feeds, pellets and mash for ruminants, pigs, poultry and game birds. The business was first established by the Ennis family in 1836 in Ballyconnell in Co. Cavan but has since moved to Virginia in Co. Cavan. During FY18, turnover grew by 9.5% to c. €69.6m although EBITDA slipped 9.7% to c. €3.8m due to the increased cost of sales. The business spent c. €2.3m on fixed assets during the year with c. €1.2 relating to freehold property, c. €668k to plant and machinery and also c. €407k relating to motor vehicles. The company paid a dividend of c. €2.2m dividend during the year, down from c. €3.8m the previous year. It ended the period with a net cash decrease of c. €4.0m leaving cash in hand on the balance sheet at c. €404k while there was a bank overdraft facility of c. €5.6m. The company employed on average 55 people during FY18 at a cost of c. €2.7m. The company is wholly owned by the Ennis family.
Who: Endeavour Technology, one of Ireland’s most progressive IoT/5G Companies having innovative IoT/5G Service Assurance products.
What: €2m funding was raised from the private sector. Focus Capital acted as advisers on the deal.
Why: The investment will enable the company to ramp up its operational capability to address the needs of large scale market opportunities in the North American IoT Market.
Source: Focus Capital
Who: Limerick-based broadband and wireless company Enet, founded in 2004 to roll out State-funded internet to the regions, has announced investment.
What: The company is investing €1m in new headquarters at the National Technological Park in Limerick.
Why: The funds will be used for expansion and relocating into the new state of the art HQ.
Source: Irish Independent
Who: Belfast tech firm Neurovalens, specialising in combining neuroscience and technology, has secured funding.
What: £750,000 (€866,100) is received from the Growth Finance Fund, which comes from a £30m (€34.64m) pot provided by the British Business Bank, Invest Northern Ireland and private investors, Northern Ireland Local Government Officers’ Superannuation Committee (NILGOSC).
Why: The investment will be used to further develop their Sleep and Slim products internationally and to move the Slim headset into the retail sector, making it more accessible to consumers
Source: Belfast Telegraph
Who: Enterprise Ireland announces a Small Business Innovation Research fund (SBIR).
What: €750,000 SBIR fund is co-funded by Enterprise Ireland. Each SBIR Challenge will be worth a minimum of €200,000 in funding. The call is open until 4 December 2019. Up to five SBIR Challenges will be awarded and will be announced in early 2020.
Why: The SBIR Challenge is for state agencies, county councils and local authorities seeking solutions to a diverse range of public challenges and encourages the Irish public sector to partner with innovation-led businesses in exploring unique solutions.
Source: Irish Examiner
Who: Software provider Spearline, co-founded by Kevin Buckley, CEO and Matthew Lawlor, CTO, has announced investment.
What: The company is investing €2.9m in a new office in Waterford.
Why: The funding is planned for creating 24 new roles in the new global sales office based out of the Waterford Institute of Technology’s ArcLabs Research and Innovation Centre.
Source: Silicon Republic
Who: Invest NI has launched two new equity funds –
The TechStart II Seed Fund and Crescent Capital IV Development Fund.
What: £30m (€34.64m) TechStart II fund will be managed by Techstart Ventures and the £65m (€75.06m) Crescent Capital IV fund will be managed by Crescent Capital.
Why: The funds will be made available to high-growth potential SMEs that are planning to realise their growth ambitions, create jobs and bring new products to market.
Source: Belfast Telegraph
Who: Cybersecurity start-up Evervault, led by 19-year-old former BT Young Scientist winner Shane Curran, has raised seed funding.
What: $3.2m (€2.87m) funding has been led by Sequoia Capital, joined by Silicon Valley firm Kleiner Perkins, Dublin’s Frontline Ventures and US seed fund SV Angel.
Why: The funding will be used to fundamentally re-architect how personal data is handled by building simple developer tools for data privacy.
Source: Fora
Who: The Department of Education has announced funding under the Higher Education Landscape fund.
What: Almost €15m has been shared between TU Dublin, which received €3.8m, and four other consortiums, made up of groups of Institutes of Technology, who have received €2m each, as well as a portion that goes towards the promotion of cross-border third level projects.
Why: The funding is to help these third level institutions to develop and align courses, push on in the field of research and ultimately progress to technological university status.
Source: RTE
Who: Investment announced for Belfast’s Odyssey complex.
What: £17m (€19.63m) will be invested by Matagorda 2, an Isle of Man domiciled entity established in 2015
Why: The financing will be used for redeveloping the complex into the number one leisure destination for families in Northern Ireland to include a new cinema, bowling alley, a number of restaurants and leisure offerings.
Source: Belfast Telegraph
Who: Taoglas, a Wexford company that makes antennas for internet-of-things devices.
What: $25m (€22.4m) debt deal has been agreed with HSBC.
Why: The debt funding will be used to help fund ongoing expansion after Dublin tech business Firmwave was acquired in July for $6.5m.
Source: Sunday Times
Who: Bleeperbike, Ireland’s first stationless bike sharing scheme, began in 2016 when CEO Hugh Cooney saw the evolution of stationless bike sharing while holidaying in China.
What: The company raised €750k under the state’s employment and investment incentive scheme in July, bringing total investment in the bike-sharing scheme to more than €1.2m.
Why: The funds will be used to double the number of available bikes to 1,000 by the end of November.
Source: Sunday Times
Who: FoodMarble, a digital health start-up based in Dublin, focused on digestive health research has brought the world’s first personal digestive tracker to market.
What: The company has opened a €3m fundraising round.
Why: The funding will be used to create more than 30 new jobs next year to help the business grow.
Source: Sunday Business Post
Who: Intouch.com, a retail software development company, which was founded by former UCD professor Sameh Abdalla and Tim Arits in 2015 is looking for funding.
What: The company is seeking to raise €7m in a Series A funding round led by a venture capital firm from the United Arab Emirates.
Why: The funding will be used to help fund International growth and triple the size of Intouch’s team, which currently stands at 18 people.
Source: Irish Independent
Who: Mainstream Renewable Power, a leading pure-play renewable energy company with a global footprint, has doubled its trade finance facility.
What: The company has increased its trade finance facility by €110m which was led by Dutch bank ABN AMRO.
Why: The funding will be used to support bid bonds, performance bonds and equity commitments across the group. It expects the first use will be to support the construction of its wholly owned Andes Renovables portfolio in Chile.
Source: Irish Independent
Instead of ‘Thought for the Week’, we are bringing you a weekly tracker using odds from oddschecker and taking off bookmakers margin to come up with deemed percentage probability of outcomes.
The current markets read as follows:
Some Sort of Brexit:
By December ’19 50% (39% last week)
H1 2020 25% (30% last week)
H2 2020/2021 11% (from 12%)
Not before 2022 14% (from 19% last week )
——————————————————————————————
No deal 11% (from 15%)
Furthermore, the odds suggest it is virtually certain that the next step is an extension beyond 31 October.
If you are not in agreement with any of above you can get the odds here and back your opinion: Oddschecker – Brexit
18.2% & 6.3%
2.9%
The unemployment rate in Northern Ireland for August 2019, below UK rate of 3.9% and the Republic of Ireland rate of 5.3% for July, according to the labour force survey from the Northern Ireland Statistics & Research Agency.
8.2% & 6.5%
The year-on-year increase in Irish GDP and GNP, respectively, for 2018, according to @CSOIreland
2.46% & 10.91%
The increase in Ireland’s total value of imports and exports respectively for YTD August 2019 versus the same period in 2018. While the trade surplus is currently €43.7bn, up 24.64%, according to @CSOIreland
7.35% & 4.78%
The increase in the value of imports and exports respectively between Ireland and Great Britain for Year-to-Date August 2019 versus the same period in 2018, according to @CSOIreland
73%
The increase in the number of seasonal and part time roles in Ireland over the past five years, according to jobs.ie @examinerbiz
2.3%
The monthly decrease in high street footfall in Northern Ireland according to the Northern Ireland Retail Consortium and Springboard. @BelTel
48.3
The Ulster Bank Construction PMI for September, down from 53.7 in August which signifies a reduction in activity in the Irish construction sector @IrishTimesBiz
€0.2b
The Irish government surplus for 2018, an improvement on the 2017 deficit of €0.9b, this is the first surplus since 2007, according to @CSOIreland
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