A round-up of today's other business news in brief
HSBC's Irish arm facing Madoff action
The Irish arm of banking giant HSBC is facing another court action here arising from the bankruptcy of $50 billion (€38 billion) fraudster Bernard Madoff and his companies.
Kalix Fund Ltd, registered in the British Virgin Islands, is suing HSBC Institutional Trust Services (Ireland) Ltd, Grand Canal Square, Dublin, for $35 million given by Kalix for investment purposes to a sub-fund of Thema International Fund plc and later allegedly passed on to Madoff companies by the HSBC company.
Kalix claims the actions of HSBC have effectively meant the investment has been “wiped out” and that loss is due to the wrongful conduct of HSBC. Mr Justice Peter Kelly transferred the action to the Commercial Court list on consent of both sides and listed it for mention in June.
Fledgling firms not most at risk
Fledgling companies are not those most at risk of going out of business in the recession, according to an analysis of the 3,523 dissolutions so far in 2009.
Company information provider Vision-net found that companies in business for between two and four years accounted for 24.6 per cent of all dissolutions, while companies in business less than two years accounted for just 11.6 per cent. That also put them at less risk than companies operating for between four and six years (15.2 per cent) and six to eight years (13.2 per cent).
The risk of dissolution fell sharply for companies more than 12 years in business.
Credit Bank profits down 8.2% in Q1
Bulgarian-American Credit Bank’s first-quarter profit fell 8.2 per cent from a year earlier because of higher impairment-expense provisions.
Net income declined to 13.5 million lev (€6.9 million) from 14.7 million lev a year ago. Lending rose 9 per cent, while assets gained 10.5 per cent to 809 million lev.
AIB and Gramercy Emerging Markets Fund are the two biggest shareholders in the Sofia-based bank, holding 49.99 per cent and 30.92 per cent respectively.
Icon expects lower earnings
Icon plc, Ireland’s largest provider of clinical research, expects 2009 earnings to be at the lower end of its forecast range as it faces a “difficult market”.
Earnings will be at the lower end of the company’s January forecast range, excluding the impact of the acquisition of the assets of the former Qualia Clinical Services announced yesterday, it said.
Icon also said first-quarter profit rose 24 per cent, helped by new contracts.
In January, Icon, which tests new medicines for pharmaceutical and biotechnology companies, forecast 2009 earnings per share of between $1.40 and $1.52 on sales of $930 million (€707 million) to $980 million.
Dragon Oil reports 19% production rise
Exploration company Dragon Oil has reported a 19 per cent increase in production for the first quarter compared with the same period in 2008. It has also more than doubled the volume of oil sold with a total of 2.5 million barrels.
Total Produce directors paid 2m
The executive directors of Fyffes spin-off Total Produce received total remuneration packages worth €2.036 million in 2008, down from €2.156 million a year earlier. Chief executive Rory Byrne received a package of €815,000, compared to €836,000 in 2007. This comprised a basic salary of €418,000, a bonus of €209,000 and a pension contribution of €188,000.
Chairman Carl McCann received €605,000 last year (down from €636,000), which included a bonus payment of €144,000. Finance director Frank Gernon was paid €616,000 in 2008, compared to €684,000 in 2007.
