Sean Quinn leaves consultancy role by mutual consent

Sean Quinn Snr has left his consultancy roles with his former company 'by mutual consent'. The decision was announced in a letter circulated to Quinn Industrial Holdings Limited (QIHL) staff this morning, in which it explains that the new management and Mr Quinn had differing expectations for his role. As a result, both Sean Quinn Snr and his son Snr Jnr have agreed to leave.

Sean Quinn Snr has confirmed that he has agreed to leave having after 'a pathway for the Quinn family to potentially realise its ambitions over time' was created.

In a statement Quinn Snr said:

'As has been well publicised, there have been commercial differences between me and the stakeholders arising from the recent restructuring of the company.

'I confirm that an agreement has now been reached with QBRC which creates a pathway for the Quinn family to potentially realise its ambitions over time.

'Arising from this positive development, I have agreed to stand aside from my contract with Quinn Industrial Holdings to facilitate that process.'

The news comes against a backdrop of heightened tensions in the area in recent months.

This morning's letter to staff, outlines that the board had initially employed Mr Quinn as a consultant, to tap into 'the wealth of experience that Sean had built up since he founded the businesses and was a role intended both as a mark of respect for Sean and to assist in creating a unified sense of purpose in support of a local management team and local businesses that sustain local employment and prosperity'.

The letter continues:
'As time has progressed, it has become evident that Sean’s expectations for his role and the ownership structure of QIHL are at odds with the strategic direction of the businesses.'
The letter also stresses positive business indicators under QIHL management, stating that employment has grown by 13%, wages have increased by over 5%, revenues have grown by 25% and EBITDA has more than doubled.

The following is the letter in full:

'Dear Colleagues
On 22nd April Quinn Industrial Holdings Limited (‘QIHL’) published an overview of our financial and operating performance for 2015, our first full year of ownership since the business was bought in December 2014.
As we mentioned in our statement it was a transformative year of business stabilisation and growth, increased employment and a renewed sense of pride and confidence for the future.

'Credit for this transformation rests with our locally-based management team and our 743 staff whose collective commitment, hard work and determination ensure a robust and sustainable business for the future. Importantly, it should not go unnoticed that the success that we have collectively delivered has had a multiplier effect on our local community and the resultant economic impact extends well beyond our directly employed staff, as we estimate QIHL sustains more than 2,500 jobs in the local area.

'Under local management, employment has grown by 13%, wages have increased by over 5%, revenues have grown by 25% and EBITDA has more than doubled. QIHL is on very strong financial footing and is poised to deliver continued growth.

As a reminder, QIHL was formed in 2014 to support QBRC Limited’s (‘QBRC’) two-pronged mission of returning the former Quinn Group businesses to local management, and growing the businesses and stabilising employment, restoring pride and value in these very important local businesses that support the economic viability of the region.

'QIHL and QBRC have delivered on their word and will continue to support and invest in the business to support a robust local economy.
Following the acquisition of the businesses by QIHL we entered into a consultancy agreement as a framework to facilitate Sean Quinn’s involvement in the businesses. We believed that this would enable us to benefit from the wealth of experience that Sean had built up since he founded the businesses and was a role intended both as a mark of respect for Sean and to assist in creating a unified sense of purpose in support of a local management team and local businesses that sustain local employment and prosperity.

'As time has progressed it has become evident that Sean’s expectations for his role and the ownership structure of QIHL are at odds with the strategic direction of the businesses.

'Accordingly, it has been mutually agreed between the parties that QIHL’s consultancy arrangement with Sean Quinn and Sean Quinn Junior will be discontinued, albeit Sean will have continued access to office facilities for his own personal use. The Board of QIHL is pleased that it has been possible to reach agreement on this matter and we were keen that staff should hear the news directly from the company.

'In conclusion we would like to thank all staff for their hard work and assure you that QIHL continues to perform well and is optimally positioned to take advantage of the recovering Irish economy as well as strong and continuing demand from the UK construction market. With your continued support and our continued investment, QIHL is well placed to continue on our journey of business and employment growth in 2016.

Yours faithfully

The Board of Directors
Quinn Industrial Holdings Limited