Lessons from the month of February

As Ireland thaws and lambs leap, the second month of the year brought with it much to think about. Here are some of the best lessons we learned.

1. The Trump Show.

The Western world cringed as Ukrainian President Volodymyr Zelenskyy visited the Oval Office this month, for a meeting which left President Trump and VP Vance being accused of turning 1600 Pennsylvania Avenue into “an arm of the Kremlin”. The meeting – which saw the Ukrainian president jeered for his outfit and criticised for his failure to express gratitude for American aid – proved sumptuous fodder for a satirised Saturday Night Live sketch at the weekend, not to mention a quip for Oscar’s host Conan O’Brien. “I guess Americans are excited to see somebody finally stand up to a powerful Russian,” O’Brien said, referencing Anora, a film centred around an American sex worker and Russian oligarch.

In other grim Trump news, the President hinted this month that he will impose a 25% tariff on EU goods. A worrying precedent indeed. Particularly given that Ireland exports €75 billion of goods to the US annually, of which €58 billion is manufactured by drug companies.

2. Ireland’s inflation rate is, presently, among Europe’s lowest.

The pace of inflation slowed in February to an annualised rate of 1.3%, a fraction of the level of price hikes that hammered households and businesses in the aftermath of Covid, as per the Irish Independent. While prices are still rising, pace has moderated as energy costs, in particular, have eased.

Meanwhile, transport costs have risen by 1.7%. Despite this, the EU’s Harmonised Consumer Price Index data for January showed that inflation in the Euro area stood at 2.5%, showing a rising trend for a fifth straight month. The figures also showed that Ireland’s inflation rate is among Europe’s lowest and significantly below the euro area inflation rate. This chimes with our Market Pulse report for Q4 2024, not to mention our recent event with The Currency at The Dean discussing it. Other main points made on the day? That SMEs in Ireland are in a strong position due to lower inflation, and the labour market is so hot right now. “With fractional C-suite talent now more accessible, businesses can tap into expertise that wasn’t available before,” CEO Stuart Fitzgerald said. “Now’s the time to secure the right team and drive your business forward! Now’s the time to build a solid plan. Set your business up for growth while protecting it if things take a downturn. Strategic planning today ensures resilience tomorrow.”

3. Housing outlined as ‘number one issue’ for Irish Government.

No, you’re not experiencing déjà vu, but yes, the Taoiseach is on about prioritising housing with little to no public confidence again. This month, Micheál Martin insisted that housing is the “number one issue” for the Irish government, despite near-consistent criticism over the use of housing data ahead of the general election last year. Sinn Féin President Mary Lou McDonald accused Martin and Tánaiste Simon Harris of deceiving the electorate that 40,000 new homes would be delivered last year, in place of the actual number, less than 33,000. Martin retorted that there was “no attempt to deceive,” while analysts in this area continue to insist that the correct term for what Ireland is going through is a housing “emergency,” not merely a housing “crisis”.

4. A month of insolvencies.

The struggle is real for companies in the retail, hospitality and construction sectors this month (and year) as insolvencies in those regions are expected to surpass 1,000 this year for the first time in a decade. As per figures published by Deloitte, corporate insolvencies increased by 212 or a third (+32%) to 875 in 2024, the highest level since 2016 (1,032). James Anderson, turnaround and restructuring partner at Deloitte Ireland, said insolvencies had risen by an average of 30% every year from 2022 to 2024, and that a 15% increase in 2025 would bring the total to 1,006. (Leinster had the highest number of insolvencies in 2024 with 677 in total, accounting for 77%.)

Among the last companies standing were Quiz and New Look, two UK-centric fashion businesses which saw a combined loss of 404 jobs in the State. New Look, built up over more than 20 years, employs 347 people, of whom 32 are full-time. The business said the shops would remain closed for the next few days, reopening briefly to commence a clearance sale.

5. M&A roundup.

Let’s rack ‘em up…

– Insurance intermediary Howden Ireland has agreed its fourth acquisition since October, with a deal to buy Clonmel-based John A. O’Sullivan Insurances Ltd. The deal brings Howden closer to its goal of having a local office in every main town in every county in Ireland, and the company said it would be a key acquisition in the south of Ireland. Led by Sean O’Sullivan, latest accounts show turnover of €1.3m and operating profit of €95,900 in 2023.

– The Ryan family have announced the successful completion of the sale of the Marine Hotel in Sutton, Dublin 13, with MD Matthew Ryan commenting: “The sale is testament to the wonderful staff and team at the Marine and we wish the new owners every success”. The sale attracted numerous bids from domestic and international hotel groups and the hotel was sold to Hotels Properties Limited, for in excess of the €10m guide price.

– Musgrave Group has agreed to buy a 91% stake in Carrick Supermarket Ltd, the operating company for the SuperValu in Carrick-on-Suir, with intent to sell it on to another independent retailer. Carrick Supermarket Ltd was established in 1999 and is jointly owned by Mary and Patrick ‘PJ’ Guinan. Turnover for the business increased by more than €500,000 in the 12 months to the end of June 2024, rising from more than €13.5m to under €14.1m.

– Irish-founded quantum computing company Horizon Quantum has entered into a non-binding letter of intent to merge with SPAC dMY Squared Technology Group Inc., in a deal that values Horizon at $500m. Dr. Joe Fitzsimons, the Irish physicist who founded Horizon Quantum and acts as CEO, and the current Horizon management team will lead the combined company, which is expected to be publicly listed. Under the terms of the letter of intent, the pre-money equity value of Horizon in the transaction is approximately $500m.

In summary:

Anyone hoping for a tame February will likely have been left sorely upset. Between Oval Office Smackdowns, Defying Gravity snubs, news that wooden log cabins are due to become the housing norm and Six Nations chaos, pretty much everyone has had their fill of worldwide news. The most worrying part of it all, though? A near constant Elon Musk ick-fest – for those of you mercifully not in the know, an ‘ick’ is a term commonly used to describe a feeling of disgust or aversion towards something or someone. It’s generally triggered by a mundane and banal, yet defining, act; like struggling to merge on a motorway, or repeating the word “yummy,” after a spoon of dessert.

In better and brighter news, spring has almost certainly sprung. Particularly, like me, if you’re steadfast in your belief that winter coats should be put away by February’s end. If you see me this month and I look freezing, mind your business.

Until next time – see you next month!

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