Lessons from the month of April

Three cheers for May and Irish summertime! Now stop being cold and let’s reflect on the month that was and see what lessons we’ve learned from April’s biggest stories.

1. A decline in job vacancies.

The level of job vacancies continued to fall in the first quarter of the year according to the latest ‘Jobs Index’ from the hiring platform IrishJobs. Vacancies were down by 3% compared to the previous quarter and declined by 28% on a year-on-year basis. During the first three months, the education sector recorded the highest quarterly increase in vacancies at 24%, more than construction (+20%), social care (+11%), engineering (+11%), property (+10%), manufacturing (+8%), science (+6%) and accountancy (+3%).

A greater level of demand for childcare workers in the sector was also noted, reflecting the challenges faced by working parents. Vacancies in the IT sector fell 8% from December, however, although the sector remains one of the largest employers in the market.

As well as this, company start-ups increased from Q1 last year amidst the insolvencies spike; 2,706 company formations were recorded in Dublin in Q1 2024, compared to 2,306 in the first three months of 2023. Outside of the large urban centres, there was also significant positive growth in Donegal (+22%), Mayo (+14%) and Wicklow (+10%). (A new year, new me mentality clearly kicked in, too: as January was the busiest month for new company start-ups in the quarter, with 2,059 new companies registered in the first 31 days of the year.)

2. Make way for Aviva.

Aviva announced plans to get back into the Irish health insurance game this year, following an eight-year stint away. A joint venture is afoot, according to the company, which shared its plans to join forces with the insurer’s former chief executive, Jim Dowdall, and one-time VHI head Oliver Tattan. The new venture – which is as-of-yet unnamed – will commence selling private health insurance in the second half of 2024, subject to regulatory approvals, Aviva said in a statement.

Aviva sold its previous health unit, Aviva Health, in 2016 to Irish Life. The expectation for its new iteration is that Aviva 2.0 will target large corporates in a bid to get scale and credibility. There is also the potential for cross-policy discounts being offered on Aviva’s range of general insurance policies. It’s hoped that its return to the market will result in a drop in coverage costs, something that’s hounded Irish businesses for some eight years. (Health insurance premiums rose by an average of 10% last year to €1,594, according to the Health Insurance Authority (HIA), amid a rising number of claims and costs. This was in advance of inflation.)

3. Big moves happened in tech.

Perhaps the biggest tech news story this month involved TikTok Lite, a new allegedly child-friendly product by the video-sharing platform. The EU has announced plans to ban the service unless TikTok can offer “compelling” evidence that children are safeguarded while using the platform. It’s understood that the service uses a watch-and-get-rewarded application that offers users prizes such as Amazon vouchers, gift cards via PayPal or TikTok’s Coins currency for points earned through “tasks”, which include watching videos, liking content, following creators or inviting friends to join. Digital commissioner, Thierry Breton told reporters that TikTok Lite “could be as toxic and addictive as cigarettes”. He said although TikTok’s main app offered users “fun and a sense of connection”, it also “comes with considerable risk for our children: addiction, anxiety, depression, eating disorders, low attention spans”.

Other tech news involves fintech firm Revolut, which is allegedly exploring plans to monetise customer data through sharing it with advertising partners. This comes as the company seeks new sources of revenue while its application for a UK banking licence remains in limbo.

“We could become a media [business]…a place where you have an audience and data about the audience and you monetise this,” Revolut’s head of growth Antoine Le Nel told the Financial Times in an interview. “We know how [users] navigate inside the app, we know some of their interests that they have because they’ve clicked on this and that.”

4. M&A roundup:

NRG Panel, the leading Monaghan-based installer of solar panels and heat pumps, has acquired JFW Renewables, one of the largest renewable energy services companies in the country. The combined group will employ more than 125 people and will have serviced over 3,500 new customers over the past year. Melior Equity Partners invested in NRG Panel last year, and the company subsequently announced plans to add 125 jobs over the next five years to drive its next phase of growth in February. Founded in 2021 by Gearoid Whelan, JFW provides residential and business customers with solar panels, batteries and electric vehicle charging services, and currently employs more than 50 people.

Hometree, the Irish-founded residential energy services provider, has secured a debt facility from funds and accounts managed by BlackRock to acquire renewable energy installation companies and expand its services in the UK. Founded in 2015 by Dubliner Simon Phelan, Hometree pitches itself as a one-stop shop for homeowners looking to decarbonise their homes and reduce energy consumption. Hometree has acquired Geowarmth and The Little Green Energy Company, both renewable energy companies based in England. “We are incredibly excited to be partnering with the founders and management teams of two exceptional renewable installation companies and look forward to helping them scale their companies significantly,” Phelan said.

Fitzgerald Power’s Corporate Finance team, led by Noel Winters, recently had the privilege of advising on the Financial Due Diligence (FDD) and Tax Due Diligence (TDD) for the successful management buyout at Xenon Building Technology. Former general manager Dermot Ryan bought out majority shareholder Seamus Byrne, who founded the company in 2009. Ryan has worked with Xenon for over nine years, and he has more than 20 years of experience in the design, installation and providing support services for a variety of advanced electronic security, life safety and building technology. Headquartered in Carlow, Xenon’s team of 25 design and implement electrical, electronic security and building technology solutions for the Irish market.

Finally, Glanbia has agreed to buy US flavours and extracts company Flavor (sic) Producers for $300m plus deferred consideration. The California-based company, which is currently owned by Aroma Holding Company, will be absorbed into its Nutritional Solutions business within its Glanbia Nutritionals division. Flavor Producers boast a particular focus on providing organic and natural ingredients to the food and beverage industries, which is what piqued Glanbia’s interest in the first place. As well as this, Flavor Producer’s strong track record of innovation, excellence in R&D, proprietary ingredients and best-in-class formulation capabilities also benefitted the acquisition.

5. Simon Harris becoming commander-in-chief.

If a week is a long time in politics, then Simon Harris’ nearly 13-year tenure in Leinster House must seem like an eternity. That said, at just 37, he is Ireland’s youngest-ever Taoiseach, superseding Varadkar who at his swearing-in was a paltry 38. His first month in the new job seems to be going well, all things considered, but perhaps his most impressive move yet was that of his complete and utter owning up to the government’s failure to protect the Stardust families amid horror and pain. In a lengthy speech in the third week of April, Harris apologised profusely for the situation which saw 48 children (plus one unborn child) not come home on Valentine’s Night 1981. It was moving and needed – and brings forth hope for his forthcoming tenure. Whether or not something will shadow that come General Election time – which has to be held within the next eleven months – remains to be seen.

In summary: Big news for anyone who hasn’t yet put away their winter coats! As it seems that warmer weather is coming our way. Or, at least it was before I jinxed it. Nevermind.

In the meantime, it seems like some television executive’s dreams have come true, as the Enhanced Games – a sporting event scheduled for inauguration next year in which openly drug-taking athletes will be able to take part in a “better version of the Olympic Games” – is set for telly to satiate our TikTokified needs. Sounds mental, sure. But why bring it up? Well, good reader, the Enhanced Games sounds like it will be a turbocharged showcase of all things wrong with this age; namely that if something makes good #content it is axiomatically freed from the shackles of morality. And in a month where Stardust families have finally been heard and apologised to, morality should be a top priority from here on out.

That said, the TikTok Taoiseach did good. Or, at least his advisors and team did. Either way.

In the meantime, we have some controlled doping to look forward to. And that’s just Leinster House. See you next month!

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