Lessons from the month of SeptemberFrom “they’re eating the dogs…” to a juicy Apple tax bill, this wet and wild month has brought in a number of big news stories. Here’s our pick of the best.1. What a sensational Paralympic Games.Few things inspire like seeing athletes overcome adversity and hurtle themselves over bars. The Paralympics often gets overshadowed by its bigger, shinier cousin, but this year it really felt like the whole world was watching. And with athletes like Ellen Keane, Róisín Ní Riain and Orla Comerford, it’s not hard to see why. Thankfully, such sporting prowess has convinced the powers that be to inject some much-needed extra funding into Irish sport. So, who knows… maybe in four years, we might even be talking about hosting our own Paralympic Games. (We can certainly provide the rain Paris did, anyway.)2. The tax bill your mother warned you about.September was the month that the Irish government paid good money in the hopes of avoiding an Apple payout. Earlier in the month, the European Commission scored a surprise win against Apple that confirmed a €14 billion back-tax bill for one of the world’s richest companies. The Court of Justice tossed out a lower court judgment that reversed the Commission’s decision that Apple’s tax arrangements with Ireland were illegal. “Ireland granted Apple unlawful aid which Ireland is required to recover,” the Court of Justice said. It stressed that its ruling was the “final judgment in the matter.”Apple said it was disappointed with the decision and accused the European Commission of “trying to retroactively change the rules”. Naturally, Ireland’s keenness to not cop this enormous payday was down to corporation tax. We want to make ourselves an attractive home for large companies, after all. However, according to the European Commission, this latest decision is a colossal victory. And according to our dear leader Simon Harris, the money will be spent on housing and energy, which is something we could all benefit from.3. Press Up, down and everywhere.It’s been a bit of a month for hospitality group Press Up. The business has been taken over by Cheyne Capital, a UK-based investment firm, in a debt-for-equity swap that has left co-founder Paddy McKillen Jr, with a stake of about 10%. McKillen Jr has since resigned as a director of three companies associated with the group, a move which affects several popular establishments in Dublin such as the Lucky Duck on Aungier Street and Captain America’s on Grafton Street.Last week Cheyne appointed Cormac O’Connor and Shane McCarthy of KPMG as receivers to companies operating three chains within the Press Up group. They were Elephant & Castle, Wowburger, and Portalon, operator of Wagamama. (Three franchises of the latter were closed in Dublin in the latter half of the month, however, new Irish outlets not under Press Up’s reign are expected.)It is seemingly business as usual at 17 other Press Up venues not included in the receivership process. These include the Stella Cinema in Rathmines, the Workman’s Club in Temple Bar, and The Dean Hotel.4. Casual economy overview. Deloitte Ireland is forecasting there will be close to 900 insolvencies by the end of 2024. This was upgraded from 800 after a huge jump in the number of insolvencies in Q3 of 2024. According to the data, SMEs were amongst the hardest hit as the rising cost of business has taken its toll. (There were 238 corporate insolvencies in Q3 2024, up 60% compared to the same quarter in 2023, according to new figures published by Deloitte.)The accommodation and food sectors once again suffered the largest monthly decline in employment in July, according to the Central Statistics Office – a worrying sign in the run-up to Christmas. Meanwhile, prices for a range of goods and services in the domestic economy are now rising at a level not seen since the Celtic Tiger era, the Irish Fiscal Advisory Council (Ifac) has warned. The Ifac went on to say that ministers are “needlessly” adding pressure to the economy by repeatedly breaking a rule of limiting spending growth to 5%. Minister for Finance Jack Chambers said the Government will “engage with the feedback” from the Fiscal Council and that it is “putting significant surpluses aside to protect progress for the future”.5. M&AsDespite the fact that venture capital funding for Irish businesses fell 22% year-on-year for the first half of 2024, according to the Irish Venture Capital Association (IVCA), September was actually a decent month for M&As.Private equity group KnightBridge acquired ice-cream parlour chain Scrumdiddlys, just two months after taking over Freshly Chopped. Terms of the deal were not disclosed, but Scrumdiddly’s founders Darren McCormack and Jennifer Kane will retain a minority shareholding in the business following the acquisition, which is being led by KnightBridge’s expanding hospitality division. Founded in 2012, Scrumdiddlys has five locations in Dublin and Kilkenny and serves up to 150,000 litres of ice cream annually.Dublin-headquartered betting group Flutter Entertainment has acquired a majority stake in Brazilian sports betting and gaming company NSX Group for approximately $350m. The Paddy Power owner has bought a 56% stake in NSX, which operates the Betnacional brand, as it seeks to expand into further international markets following its rapid growth in the US. NSX is the fourth-largest betting company in Brazil and has gained a 9% share of the online market since entering it in 2021. It is expected to generate revenues of $256m and an adjusted EBITDA of $34m this year.A big month for Flutter as they also acquired Italian online sports betting company Snaitech from Playtech PLC for €2.3bn. Snaitech is the third largest operator in the Italian online betting market with a share of 10% and 291,000 monthly users. Snaitech also runs 2,000 betting shops and has retail market shares of 19% in betting and 14% in gaming. The company generated revenue of €947m and adjusted EBITDA of €256m last year, of which 50% was generated online.Finally, the Dalata Hotel Group has confirmed the sale of the Maldron Hotel in Wexford, while they are also in discussions regarding the sale of the iconic Clayton Whites Hotel in the heart of the town. The largest hotel operators in Ireland, Dalata confirmed this month that contracts had been exchanged with The Neville Park Hotel Group, owned by Wexford man Colm Neville. Dalata confirmed that the team currently employed at The Maldron will transfer across to the Neville Park Hotel Group and they have “commenced a comprehensive process of employee engagement to ensure a seamless transition”. The changeover is expected to be completed by November 5.6. Big change afoot in Big Tech.This month saw online retail giant Amazon ask their employees to return to the office five days a week as it ends its hybrid work policy. The change will come into force in January, Amazon’s chief executive Andy Jassy – someone who is famously against hybrid working – said in a memo to staff. “We’ve decided that we’re going to return to being in the office the way we were before the onset of Covid,” he said, adding that it would help staff be “better set up to invent, collaborate, and be connected enough to each other”.The move has been a source of tension within the firm, which employs more than 1.5 million people globally in full-time and part-time roles. Staff at its Seattle headquarters staged a protest last year as the company tightened the full remote work allowance that was put in place during the pandemic. Amazon subsequently fired the organiser of the protest, prompting claims of unfair retaliation, a dispute that has been taken up with labour officials.Meanwhile, at TikTok, plans have changed which has seen them reportedly pull out of talks to rent a major office space in Dublin’s docklands, according to The Irish Times. In January, it was reported that the social media platform was in talks to secure office space that would give it capacity for another 2,500 workers. But now, industry sources told The Irish Times that TikTok does not intend to move ahead with plans to rent a 177,000 sq ft space and the property is back on the market.It is unclear why this move has been made. Last month, Wired reported that the video-sharing platform began a global restructuring of its business that includes layoffs in the US, with European jobs at risk. TikTok has not commented on the Dublin decision, but a spokesperson said it still plans to hire an additional 1,000 workers to bolster its Irish operations. (The plan to grow its Irish workforce was revealed at a meeting in June between TikTok CEO Shou Zi Chew, IDA Ireland representatives and Taoiseach Michéal Martin.)In summary:If nothing else, Ireland has proven once again that if we know anything, it’s how to spend money in a way that will get people talking. With hundreds of thousands on a bike shed, over a million on a security hub, and the most expensive medical facility in the world, our government’s decision to turn down a sum of €14B, left many shaking our collective heads. That said, with the C-word coming up (Christmas, get your mind out of the gutter), money talk is only going to get more egregious from here on in. Strap in, there is a long way to go.In other disruptive news, winter is seemingly here! After a much delayed, five-day, Indian summer, the sky has opened and our true fate has rained down upon us. However, we do have some things to look forward to: one whole month of telling Americans that we invented Halloween, colder evenings where bailing on plans is encouraged if not mandatory, and finally admitting to ourselves that sea swimming when it’s less than 10°C is mental. Oh, and something called the Budget, but the less said about that the better. *Why not read & download this comprehensive Budget 2025 report written by our very own SME Partner – Jennifer Power below.Thankfully, the kids are back at school, so normal scheduling has resumed somewhat. Unless you work in tax that is. And for those that do? May God have mercy on your souls.See you next month!Our team is dedicated to providing you and your business with the absolute best business advice out there. We approach each and every case from a fresh perspective, working with you to find tailored solutions that leave your business feeling stronger than ever. With our expert analysis, we translate figures into a language you can understand. Using timely, reliable advice, our experienced team of experts devise sophisticated plans to encourage cost efficiency and growth. To find out more, contact our team at Fitzgerald Power today.
