Rescue plan at specialist electrical systems business saves 480 jobs
Approving the plan drawn up by examiner Joe Walsh of JW Accountants, Ms Justice Leonie Reynolds complimented the pragmatic attitude taken by the Revenue Commissioners in deciding to accept the deferment of significant payments due to them in order to save so many jobs.
The court heard that Instrotec was a specialist electrical and instrumentation contractor working on complex projects such as data centres, semiconductor and pharmaceutical facilities as well as oil and gas plants in Ireland and Europe.
It has 172 apprentices on its books, making it one of the largest trainers of skilled workers in the State.
READ MORE
Revenues had more than trebled in recent years from €11.7 million in 2020 to €39.2 million in 2023 as the company worked on contracts with industry leaders including Intel, Pfizer, Microsoft, Eli Lilly and MSD.
The company got into trouble last year after delays and cost overruns on three specific projects, according to an independent report prepared by Cormac Mohan, an accountant at Fitzwilliam Corporate, which said the business, which went into examinership in May, had a reasonable chance of survival.
The three projects were Eli Lilly's new plant in Limerick, a data centre project in Amsterdam and a Microsoft development in Sweden.
Ms Justice Reynolds said the court considered the examiner's scheme of arrangement fair and equitable to all parties involved and would protect jobs going forward. She said Revenue's attitude was very helpful in ensuring survival of the company.
The court was told that Revenue was not objecting to the scheme of rescue arrangement proposed by Mr Walsh. Counsel for Revenue said the jobs included apprentices and those employed in external agency contracts.
Instrotec which also controls three international subsidiaries in Germany, Denmark and the UK, was founded in 2000 by Donal Johnston and Donna Johnston who have run the business for 25 years.
Donal, a time served electrician with extensive instrumentation and control experience, had identified an opportunity in the market for a specialist contractor in the field of electrical instrumentation and instrument pipe fitting.
Instrotec quickly established a reputation in the growing pharmaceutical and microprocessor manufacturing sectors as the foremost contractor for instrumentation and control systems.
In recent years it had expanded on its existing electrical portfolio to establish a proven track record in the installation of various low and medium voltage electrical systems across a broad range of sectors. That allowed the Mayo business to provide an all-encompassing service across instrumentation and control, building management and industrial electrical systems.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
6 hours ago
- Irish Times
The Irish Times view on the exchequer figures: Ireland should not bank on outperformance continuing
Forecasts over recent years that Ireland's extraordinary reliance on surging corporate tax receipts would, one day, cause the State problems are beginning to sound a bit like the fable of the ' boy who called wolf.' Even with global uncertainty brought on by the policies of US president Donald Trump, this week's exchequer returns for July showed that Ireland's tax take from big business keeps on climbing and could exceed €30 billion this year. Estimates from the Department of Finance and the Fiscal Advisory Council (IFAC) suggest that around half of this total could be what they term windfall receipts. This means that they relate not to economic activity in Ireland, but to tax planning by the big multinationals. Ireland's vulnerability lies in two areas – the longer-term relocation of manufacturing activity, were this to happen due to Trump's policies, and changes in tax planning structures and pricing policies . Perhaps, politically, it is best to take a 'glass half full' approach to these issues, focusing on the money that Ireland is now receiving and the opportunity it creates. A key point here is that putting money away now – as the Government is doing into two funds – does create some leeway for future years both to avoid cutbacks in current spending or higher taxes and to maintain vital State investment. READ MORE However, the ability of the Irish political system to learn the lessons of the past is questionable. The amount which has been put into the two funds is useful, but still relatively modest. And there is already talk of raiding one of them to pay for investment projects under the revised National Development Plan. Meanwhile, a debate is heating up on the October budget, centred on how much money people will get and to what extent taxes will be reduced. A key part of this is whether there should be another 'cost-of-living' package comprised of once-off payments. This would be a mistake. As well as higher investment, it is time to focus on permanent improvements aimed at those who need it – and the provision of better services to the public in areas like health, education and childcare. The political problem is that the State may well have leeway in its budget sums, creating demands for more largesse. But a key goal of Budget 2026 must be to reduce risk. Ireland cannot rely on exchequer returns continuing ahead of forecasts each year. Some day, its luck will turn. Nobody knows whether, in two or three year's time, the €30 billion we may collect this year in corporation tax might be €35 billion or €20 billion. In case the wolf does arrive, this budget cannot afford to spray money around to households again in once-off payments, pretending to address the ' cost of living' but in fact giving cash to many who do not need it, as well as some who do.
Irish Times
8 hours ago
- Irish Times
Trump-Putin summit boosts global stocks amid hopes of Ukraine ceasefire
Global stocks largely shrugged off the imposition of US president Donald Trump's tariffs regime, lifted by fresh hopes of a ceasefire in Ukraine amid reports that Mr Trump will meet Russian president Vladimir Putin in the coming days. DUBLIN The Iseq index advanced by almost 1 per cent, led higher by bank stocks. Traders in Dublin said the performance of the Irish economy and Wednesday's exchequer figures boosted the main lenders. Bank of Ireland advanced by 2.7 per cent to close at €12.59 per share, while AIB added 2.1 per cent to €6.92. Ryanair added 0.5 per cent to €25.97, slightly underperforming its peers. READ MORE Food stocks also advanced with Glanbia recovering some of the ground lost on Wednesday, adding 1.3 per cent to close at €12.26 per share. Kerry Group closed at €80.90, up 1 per cent. Influencers beware, Revenue is on the prowl Listen | 48:38 On the eve of its half-year results release, insulation maker Kingspan 's shares jumped 1.4 per cent to €71.60. LONDON British stocks were mixed with the benchmark FTSE 100 index down by 0.7 per cent and the mid-cap FTSE 250 up slightly as traders weighed the Bank of England's latest interest rate cut. The central bank's decision was expected, but inflation concerns among policymakers caused markets to reduce the number of rate cuts they expect in the rest of 2025. UK defence stocks fell as part of a wider sectoral move after German defence company Rheinmetall missed quarterly results expectations, dragging down European peers. Babcock International plunged 5.8 per cent while BAE Systems shed 5.3 per cent and Rolls-Royce dipped by more than 1 per cent. Hikma Pharmaceuticals suffered the biggest drop on the benchmark index, falling more than 7 per cent after a strong euro prompted the group to lower its margin outlook for its injectables unit. EUROPE European shares advanced, led by German stocks and boosted by renewed hopes for a ceasefire between Ukraine and Russia. The blue-chip Stoxx 50 index jumped by almost 1.4 per cent while the pan-European Stoxx 600 added 0.9 per cent. Allianz was one of the biggest movers on the day, advancing by 4.1 per cent after the German insurer reported a 12 per cent jump in operating profits to €4.41 billion amid better results in its property-casualty insurance segment and inflows at its investment arm, Pimco. Siemens added 3.3 per cent after reporting that revenue and orders rose in its fiscal third quarter as robust demand for the German industrial manufacturer's rail products offset a decline at the software business. Automakers also gained with Stellantis up by 3.5 per cent, Volkswagen ahead on the session by 2.4 per cent and Mercedes-Benz up 2.2 per cent. NEW YORK A rally in US stocks sputtered near all-time highs amid concerns over an overheated market. Shortly after European markets closed, the Dow Jones Industrial Average had dipped 0.6 per cent, with the S&P 500 also marginally down and the Nasdaq Composite up by almost 0.4 per cent. Shares in Irish building materials giant CRH were up 10 per cent by closing bell in Dublin after reporting a 2 per cent rise in profits to $1.3 billion (€1.12 billion) in the three months to the end of June. A closely watched gauge of chipmakers jumped, but Intel Corp slipped 3 per cent as Mr Trump called on its chief to resign, citing conflicts of interest. Eli Lilly tumbled 14 per cent after disappointing data on its new weight-loss pill. Apple extended a two-day surge to 8 per cent. – Additional reporting: Bloomberg/Reuters
Irish Times
8 hours ago
- Irish Times
Some An Post current account customers hit by ‘error' with direct debit payments
An Post said it is ttempting to fix an error that is holding up direct debit payments for some of its around 90,000 current account customers. In response to questions, a spokeswoman for the State-owned postal group said it had received contact from customers about direct debit payments and was looking into the matter late on Thursday afternoon. She later said An Post Money was 'working to correct an error' that led to the 'erroneous recalling of a direct debit file' affecting some of its current account customers. 'We will continue working overnight to ensure the error is rectified by midday [on Friday],' she said. 'There is no action required by any customer.' READ MORE 'We apologise unreservedly to affected customers for this inconvenience,' the spokeswoman said. [ David McRedmond: 'An Post has been brilliant. I've never been remunerated less and enjoyed a job more' Opens in new window ] It is not clear how many customers have been impacted by the error. An Post had some 90,000 current account customers in 2024, according to its most recent annual report, but the postal service said the issue only affected those with direct debit payments scheduled for Thursday. The spokeswoman said the error affected only a 'small number' of An Post Money account holders. One customer told The Irish Times they were alerted to the issue when their mobile phone network operator did not receive a regular payment from their An Post Money current account. The money had left the account, they said, but had not been received by the vendor, and An Post was unable to tell them when the money would be returned. The customer said they were advised by An Post to pay the vendor directly instead. The spokeswoman for An Post said: 'We are not advising [and never did advise] customers to make payments directly to any vendors.' The Central Bank of Ireland, which regulates An Post Money, was approached for comment. Speaking to The Irish Times in July, An Post chief executive David McRedmond said the company 'needs to scale up' its own current account offering. However, he said its agency banking arrangements with AIB and Bank of Ireland meant that the post office was now 'the high-street bank' in many parts of rural Ireland, facilitating basic cash transactions.
