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While the economy in Ireland continues to face serious challenges we feel that the second quarter has begun to show signs of an emerging international recovery. The contraction in Irish construction has continued to impact with volumes in cement and related products down by over 40%. However, all of our businesses have remained profitable with particularly strong performances in Glass, Packaging and Insurance.
Our staff have remained dedicated throughout this period and have again demonstrated their loyalty and flexibility in making the necessary adjustments. While this effort will need to be maintained, particularly in the construction related divisions, we are delighted that we are again actively recruiting in two of our manufacturing facilities.
Our previous investments are now proving their worth in helping to maintain our competitive advantage, which has given us the ability to increase exports and maintain profitability, notwithstanding a reduced trading volume. We remain confident that we can outperform our peers in all of the various sectors that we are involved in. As the recovery takes hold we are very well placed to take advantage, meet our financial targets and deliver sustainable growth over the coming years.

The Group was delighted that two of its complaints to the Press Ombudsman in relation to the coverage of the Group activities by the Sunday Tribune were upheld and subsequently upheld by the Press Council following objection by the Tribune. It is telling that the Tribune has failed so far to publish a Right of Reply by Sean Quinn, as recommended by the Press Ombudsman, and we feel this further illustrates the untenable position that it holds in respect of its coverage of the Group's activities.
For reference the Right of Reply is available here.
Some recent media comment in relation to the decision by Quinn direct to revise its underwriting criteria for a very small number of areas across the Country where there is a very high frequency of claims fails to address the key facts of the issue. The following points are important in our view:
1. For the past 14 years Quinn Insurance has made insurance available over the phone and online to 100% of the eligible population in Ireland and even now more than 99% of the Country can get a quote immediately through our contact centres. This is the case while a number of other insurers exclude huge swathes of the market. Contrary to this being well known in the media circles they chose not to report on this issue.
2. Regarding the 1% that we have concerns with, these are areas where the cost of claims is in some cases, six times that of the average for the rest of the Country. Unfortunately in some cases Bus Eireann and taxis firms refuse to travel to a number of these areas at night. We have repeatedly pressed for a thorough investigation, by the relevant authorities, of the serious underlying social issues that exist in these areas but to no avail.
3. While clearly the authorities need to address the underlying issues, it is unrealistic to expect that the full burden of social responsibility for any area rests at the door of Quinn direct. We feel that we have a primary duty to make the necessary decisions in the interests of the 2,500 staff within the Company and our 1 million plus Insurance customers.
4. Despite the unbalanced media comment we will continue to lobby the appropriate authorities to act but we will not be deflected from ensuring our Company is the most efficient and best its class within the insurance sector.
The specification side of QUINN-radiators UK business has continued to gain additional market share with the recent announcement of new government contracts in Birmingham & Nottingham.
The contract with Nottingham City Council’s £34 million “Warmth for Homes” project is in place for 4 years with an estimated 100,000 radiators to be installed over that period. According to Clare Hasprey, Specification Manager for that area, the winning of the contract was down to the efficiencies & savings achievable using the Quinn Round Top over competitors’ products, with superior service also being a major driver of QUINN-radiators’ success.
Having switched from the Quinn Compact product to the Quinn Round Top product last October, Birmingham City Council were sufficiently impressed that they have specified the new product across the city in their April 2009-2010 contract. QUINN-radiators was able to demonstrate a definitive saving of £42 per household whilst maintaining high heat outputs by using the Quinn Round Top over other products.
Recent studies have shown that switching to new modern radiators can cut energy bills for most householders by over 30% and have a pay-back period of 3 to 4 years.
The filling operation in Elton continues to expand with the introduction of a significant new wine customer; Australian Vintage, who are the second largest producer of wine in Australia. They produce 15% of all Australian wines and are second only in size to the Fosters Group who are already a customer of the facility in Elton.
Many of the brands Australian Vintage produce are large volume and therefore are ideally suited to the Elton operation. "McGuigan" wines and "Calloway Crossing" are amongst the new brands being processed. Other big name brands bottled in the facility include “Big Kahuna” which is available in Tesco and “Wollemi” which is available in Sainsbury supermarkets.
The management and staff of the plant in Elton were delighted to welcome a group of 12 children from Chernobyl in April. The kids had a wonderful time and were fascinated by the glass forming process. The visit is part of an overall programme in involving QUINN-glass with the Charity and follows a previous visit by a group of Chernobyl children earlier in the year.
Over 1,500 people joined staff for the summer family open day at the plant on 27 June. As well as the wonderful family attractions, a series of factory tours gave visitors a chance to explore and view the extent of the production lines which manufactures and fill the bottles. The event was opened by Andrew Miller MP for Ellesmere Port & Neston Borough Council and raised over £3,000 for local charities.
The Company is delighted to be nominated for this very prestigious award which recognises the contribution of companies based in Britain to the bottling and glass sector. We look forward to the annual dinner in December when the winner will be announced, but our team is extremely proud to have been nominated at this stage.
This is a pitched roof rafter insulation design that can be easily installed between ceiling joists. It is aimed at new build and the retrofit market where homeowners are looking to improve insulation in their already existing homes. The key to this product is its width adjustment feature enabling the board to compress and fit between the rafters or joists and then expand to ensure a snug, tight fit. QUINN-therm Easi-dorm is cost effective to use with less waste generated during installation and is very simple and fast to deploy.
Quinn Cast material was recently used in a project application for the new Girls Aloud video 'Untouchable'. The material was supplied through the distribution channel and Machine Shop who were commissioned to fabricate two 1,800mm diameter acrylic domes which were big enough for the girls to step into. The material used was clear Quinn Cast 10mm, which was deemed the ideal choice of material for this particular application due to its excellent optical clarity, high impact strength and ease of fabrication. Machine Shop then turned the Quinn Cast spheres into spaceships to compliment the space age theme of the video.
QUINN-group is revisiting its agricultural supply roots this summer by adding the new Quinn Wrap product to the already expanding range of QUINN-packaging products. Quinn Wrap, agricultural bale wrap is a multilayered stretch film, formulated for wrapping conventional round bales or large square baled silage. Production and testing of this product has been on-going in the Ballyconnell plant since early April and the first consignment left the factory floor in early June. This product has generated strong local interest around Fermanagh and Cavan and is now being sold nationally in both Ireland and the UK.
In July Quinn direct completed the commissioning of its new contact centre in Navan and moved its personnel from temporary facilities in Kells. The new 6,700m2 centre on three levels deploys the very best practice in contact centre technology and environmental sustainability. The 700 seat centre will accommodate the expansion needs of the Company now and in the future and is primarily focused on providing services to customers outside of Ireland.
QUINN-direct customers are now able to avail of a discount of 5% (up to €50) when purchasing a car insurance policy online. To avail of the discount, all you need to do is visit www.quinn-direct.com and purchase a policy online. Online customers will find getting a car insurance quote is faster and easier on www.quinn-direct.com. Using the Quick Quote service on the secure website, customers can get an accurate quote in just two minutes. The new Quick Quote service means customers only need to complete one page to get their car insurance quote. These quote details can be saved so that customers can log on to re-access their quotes on return visits.
QUINN-direct launched its sponsorship of the Ulster GAA Writers Association (UGAAWA) in June. This includes sponsorship of the Monthly Merit and Annual awards for the next five years. The QUINN-direct/UGAAWA Awards reinforces the Company's proud tradition of supporting sports within the Community at both local and national level.
The QUINN-direct/UGAAWA Monthly Merit Award is made to persons within the GAA whom the Association feel have done something special during the month. This award can go to anyone within the GAA - football (male & female), hurling, camogie, handball, Scor, etc. The Ulster GAA Writers Association was formed in May 1988 with the purpose of increasing public interest in Gaelic Games within Ulster. All members of the Association are full-time working journalists dealing with GAA matters at local or national level.
Once again the QUINN-direct PGA Charity Trophy took place on the 18th & 19th May 2009. In addition to the prize fund of €70,000, two charities, the Kinawley Community Hall Association and COPE Galway received a donation of €16,000 each. Despite the inclement weather the course was presented in excellent condition with a full compliment of 51 teams competing. Challenge tour player Michael McGeady led the professionals home with a combined score of 7 under (69, 68) followed by David Higgins on 6 under. The leading team, Usher Bathrooms, led by Dermot Usher, Nick Carberry, Tony Goucher and professional David Mortimer recorded an aggregate score of 180 points (92, 88).
QUINN-healthcare has started to relocate its operations from Fermoy, Co Cork to the new €25 million state-of-the art facility, twenty miles away, in Little Island. The move will take place progressively over the next six months. The move will ensure that the high level of customer service currently provided can be maintained as the Company grows.
Over 1,600 coaches from all over Ireland were welcomed to the "Preparing to Perform", multi-sports conference in City West in July. Triple-Major winner Padraig Harrington, Mickey Harte and Brian Cody shared their views and secrets to success with other coaches from all over Ireland, Britain and the US.
QUINN-healthcare has also confirmed its continuing sponsorship of the Rehab People of the Year Awards which will be hosted in September.
Buswells Hotel has been awarded with the prestigious Green Hospitality Award for the hospitality sector. Through the implementation of environmental best practice the hotel in Molesworth Street, Dublin is now certified as Green with its proven awareness of environmental management as an integral part of its business.
Mr. Michael Kitt, T.D., Minister of State at the Department of the Environment, Heritage and Local Government presented the award to Buswells Hotel at the National Green Hospitality Awards in the Westin Hotel, Dublin on 21 January 2009. This award is designed to recognise achievements by individual members and groups. The Green Hospitality Award is part of the Green Business Initiative, which seeks to promote and bring about better environmental performance in Irish businesses and other organisations.
"This project has had a significant environmental impact in terms of less waste being produced, and less energy, water and raw materials being wasted." The Minister said; "The experience of the Green Hospitality Award participants demonstrates that taking measures to reduce your environmental impact need not be seen as a burden or a threat to business, but can be viewed as an opportunity to reduce operating costs and increase competitiveness while contributing to the challenge of tackling climate change".
In May the QUINN-group was delighted that its office development in Moscow; Kutuzoff Tower, was officially opened by Minister Billy Kelleher, while on his trade mission to the region. The 38,000m² office complex is now fully operational and the opening ceremony was attended by the Irish Ambassador to Russia; Justin Harmon as well as a number of city officials from the Russian Ministry of Economic Development. The QUINN-group continues to have high expectations for future investments in the developing regions with these economies well positioned to take advantage of any upturn in world growth.
We greatly appreciate the continued support of our 1.3m strong customer base and our 8,000 staff across the 13 countries in which we operate. We intend to continue with our current approach for the rest of the year by concentrating on maintaining margins and actively seeking to increase export related business. In this way we feel we can continue to ensure that our 36-year continuous growth pattern is sustained into the future.
31 Jul 2009