PAPERS SHOW PRESSURE ON DONNYBROOK FAIR - Financial statements filed recently for Donnybrook Fair reveal the financial pressure the upscale food retailer was under as its former owners, Joe and Mary Doyle, were trying to sell the business at the beginning of last year.
According to its accounts for the year to the end of last January, at the time that the Doyles were exploring a potential sale of the business to Dunnes Stores, Donnybrook Fair was in breach of its banking covenants. The business was eventually sold to SuperValu’s owner Musgrave last September, says the Irish Times. Sales during the 12-month period covered by the accounts fell by 6.6% to €26.3 million, as the business blamed disruption caused by building works near one of its outlets, as well as increased competition from more mainstream, larger food retailers that were moving upmarket. The group, which operates five supermarkets in the greater Dublin area and a food production facility, made a loss of more than €870,000 in the period, compared to a profit of €128,000 the previous year, although the 2017 figure had been boosted by a one-off gain from the sale and leaseback of one of its stores. The group had total assets at the beginning of the year of €16.9 million but liabilities of €15.4 million.
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MOODY'S: BREXIT WON'T HIT 'ROBUST' IRELAND'S RATING - Even with the risk of a hard Brexit, the State's credit rating looks secure thanks to the economy's "very robust" fundamentals, ratings agency Moody's believes.
The unknowns from Brexit have risen as Prime Minister Theresa May's proposed deal has failed to satisfy many of those seeking a clean break from the European Union as well as those who wish to retain stronger links. "Despite the enhanced risks, we see Ireland in a pretty strong and stable situation," sovereign risk analyst Sarah Carlson told a presentation in Dublin yesterday. Ms Carlson said that Ireland did need to build up budget reserves to offset the risks from being a small open economy. Moody's rates Ireland A2 and believes that a no-deal Brexit would knock 4% points off UK growth over the longer term, although its central case is not for a cliff-edge exit, writes the Irish Independent. It did not model the impact of a no-deal exit on Ireland's growth, although other forecasts have said a no-deal Brexit would lop between 4% and 7% points off long-term economic growth here. Under most assumptions that would still mean positive economic growth here, but at a slower pace. Ms Carlson said that while Ireland had been helped by the "very strong" levels of economic growth seen in recent years, there had also been an improvement in public finances. The Government ran a budget surplus last year for the first time since 2006.
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GREEN LIGHT FOR 185-BED VICAR STREET HOTEL DESPITE LOCAL OPPOSITION - Dublin City Council has given the green light to developer, Harry Crosbie for a new eight storey 185 bedroom hotel at Vicar Street in the Dublin Liberties in spite of some local opposition.
A spokesman for Mr Crosbie said on Tuesday that it is hoped that construction work on the Vicar Street Hotel will commence on the project in the next number of weeks and that the hotel will be open for business in 2020, says the Irish Examiner. The spokesman said that the hotel "will add to the growing restoration of the Liberties". The spokesman also confirmed that Mr Crosbie "is also working on a Vicar Street South in conjunction with Wexford County Council". The new venture in Dublin, when operational will create 80 jobs and the spokesman said that the hotel development "will create a new way for the public to enjoy a live show". "We will create a new 'rock and room' concept with our exclusive promoter Peter Aiken. We will upgrade the venue to ensure its continued status as Dublin's premier mid-size venue," he said. Walls Construction, which worked with Mr Crosbie on the original Point Depot and when it was transformed into an area, are to construct the hotel.
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HEDGE FUNDS USE OF PRIVATE EXIT POLLS ATTRACTS CITY WATCHDOG - The City watchdog in the UK is considering fresh guidelines around the sale of private polling data to hedge funds looking to profit from major political events such as Brexit.
The practice came under fire after a report detailed how hedge funds - eager to cash in on currency market volatility and profit from the EU referendum - commissioned private exit polls to bet on the price of sterling in the run-up to the June 2016 vote, says today's Guardian. Those private polls showed a Brexit win, giving hedge funds an edge over the public, as broadcasters ran comments after the polls closed from prominent Brexiter and the former Ukip leader Nigel Farage suggesting that the remain vote would "edge it". The Conservative MP and Treasury committee chair, Nicky Morgan, has warned that the sale of private polls to hedge funds during key political events poses risks to the "integrity of UK financial markets". The Financial Conduct Authority previously said it would not crack down on hedge funds over the purchase of private polls unless it was used in a way that broke the rules. But its chief executive, Andrew Bailey, told MPs on the Treasury committee on Tuesday that he had given the issue "quite a bit of thought" and is looking at whether the FCA could step in through regulations meant to cover insider dealing and inside information.
