Twisted Love and Money (6 page)

In the meantime
she would lunch in the Café of the National Library. The very
helpful concierge at the hotel had told her that they had a
genealogy office at the National Library and also back copies of
all the national and provincial newspapers going back centuries.
This would be a good place to research the O’Byrne family. She
needed a route to get to the O’Byrnes. She would do her homework
and find out what was in the local public domain about this private
family and their large Irish Business.

Chapter
seven

Wednesday was a
cold dull day, but it was cosy indoors. The weekly Board Meeting
came to order as Michael picked up his papers and coughed. He
opened the discussions by welcoming the new members to the
Board.

Michael O’Byrne
sat at the head of the table. To his right James O’Driscoll the
Marketing Director. Next to him Peter O’Byrne sat self consciously,
not used to the formality of the board or the fact that he was now
a member. Dorothy sat on Michael’s right. John O’Malley was to her
right again. This was the first board meeting since he had been
recruited. Finally at the far end of the table Dermot O’Rourke the
Production Director sat or rather slouched. There was plenty of
room as none of the non-executive directors nominated by the bank
were present. The group sat with at least one spare seat between
them, using the space to spread out their papers.

“Congratulations Michael,” Dorothy congratulated, referring to the
German takeover. They had just been through the papers and recorded
the necessary minutes to formally authorize the purchase.

“We did a good
deal,” Michael said agreeably.

“Yea,” James
concurred “but a good deal only if we can use the distribution
chain as an outlet for our Irish Organic Produce and
Mushrooms.”

“Presumably
that is why we bought in,” Dermot said dryly.

“Yes,” Michael
confirmed. “James has been very busy. He has tied up a number of
distribution outlets around our new acquisitions. With the
increased volumes we should be looking at a two to three year pay
back.”

He paused.

“
Let us stay with the agenda. Production next?” he added with a
raised eyebrow towards Dermot.

Dermot took up
the next hour with a detailed presentation on the status of various
procurement contracts, then on to the mushroom scene and finally
the Dublin vegetable Market.

“Very good,”
Michael had concluded that part of the agenda after allowing some
questions that Dermot fielded expertly.

“Now to the
proposed new plant in Cork. Dorothy can you start with the
Financials on the project?”

“I would like
John to present the figures,” Dorothy said.

Michael smiled,
“John?” he said, deferring to Dorothy’s wish.

John cleared
his throat. “As you know the plant has a capital approval of four
million. The project is two thirds completed. It is a turnkey
project and on a green field site so the financials are
straightforward in that the main contractor has to deliver to the
contract. Our advising engineers McNaughtons certify the work
done.”

Dermot came in,
in support. “The project seems well on time and within budget. This
week three large lorries will arrive with about a million pounds
worth of drying equipment.”

“Total project
completion cost estimate is three point nine million,” John took up
the story again.

“Very good
John,” Michael commented, “glad to see you are very quickly getting
on top of the numbers.”

The other board
members murmured in agreement. Dorothy smiled. She had spent a lot
of time coaching John, but he sure was a quick learner.

“There are
contracts on about four thousand acres of vegetables sown
throughout Cork and other parts of Munster. We hope to employ about
two hundred people at the peak. For your information the peas went
in starting St. Patrick’s Day. The sowing will end with beans
around mid may,” John added.

“That is
Dermot’s area,” Peter threw in, aggressively addressing John. Keep
the new finance man in his box, he thought.

“True,” Dorothy
said agreeably realizing her brother was attempting to put John in
his box but she remained friendly on the surface, “but,” she added
with a smile, “All roads lead to Rome, the Finances. Explain
John.”

“Well, Peter it
is very simple, we have to pay cash to our suppliers. We then have
to carry stock and finally we sell. Which is of course your
department Peter, yours and James’s. Obviously we must sell and
then wait to get paid and our cash back. Our markets, mainly
supermarkets, require credit on our sales. The end result is there
is a large funding requirement to cover the time between paying the
Farmer and our getting out cash back from sales to our customers.
We also have to cover running costs such as wages etcetera until we
get the proceeds of our sales back into the bank.”

“Well O.K.”
Peter conceded, “I had not thought it through. How much will we
have tied up?”

“Working
Capital, net about ten million.”

“Big money,”
Peter agreed.

“By my
calculations, if we sell over sixty-five percent we will be above
the break even line,” John explained.

“Excellent,”
Michael sounded satisfied with his Board.

“Home Trade
Peter?” Michael asked, switching the subject.

Peter startled,
seeing that he was in the limelight. “Mr. O’Driscoll, I mean James,
has taken me through the scenarios in Ireland and Britain,” Peter
began.

“And I have put
O’Malley and Riseley in to help Peter, “ James interjected.

“Two very good
men,” Michael agreed, pleased James had given his son the best
backup available.

Dermot O’Rourke
relaxed. Either of O’Malley or Riseley could carry the home trade
area. They would carry Peter if he had the sense to listen to
them.

“I have put the
team through their paces,” Peter went on, “they seem sound
enough.”
“Good, good, Peter,” Michael interjected.

Peter took a
big breath. His appointment to the Board had been announced to the
public on Friday, alongside that of John O’Malley. It had been just
an announcement in the Irish Times, but some reporter had done a
small item on O’Byrne’s and given a run down on the new Board.

To Peter’s
surprise he’d had a follow up call on the weekend from a
representative of one of the Company’s major customers. Peter had
been flattered. Papers arrived and he’d briefed James O’Driscoll.
Together they’d had several phone calls in preparation for the
Board Meeting.

As he began to
speak he knew he was going to surprise them.

“I have had
contact from a major U.K. group of customers through their parent
company Associated Finance,” Peter said and paused, looked around
and let the silence grow for a minute. He savoured their
attention.

“Associated
Finance,” he continued, “are a very decentralized organization, a
holding company with a good growth record. They usually leave their
subsidiaries alone once they hit profit targets.”

“Do you think
there is trouble Peter? I would not have expected a contact from
the HQ,” Dorothy interjected, feeling that Peter was becoming too
self-important at his first Board Meeting.

“
I was in on this, Peter contacted me immediately the contact
was made. We know Associated Finance better under the names of
their supermarket chains. However recently they appear to have
consolidated some aspects of their procurement. They are intending
to do significant buying through a central procurement
division.”

“
Dorothy I think you will find that they have a new procurement
policy,” Peter said by way of rebuttal.

“Associated
Finance has acted in a passive way as Holding Company, that is, as
far as we have been concerned,” Dorothy persisted.

“I know of the
company,” John threw in “They really are a major multinational
player and they are a highly diversified business. They have a
London Stock Market quotation and they have grown very large over
the last ten years. Their top man is called Leo Crawford. He has a
huge reputation in the city and is reputed to be ruthless in
takeover situations.”

“
So what are you telling us Peter?” Dermot liked to keep it
simple and wondered where the discussion was going.

Peter drew a
breath; this was his surprise for them, his coup.

“Well it’s like
this,” he explained. “They explained to us that they were going for
ISO registration.”

“ISO what?”
Michael asked.

“ISO,” John
interjected, “is an international quality standard. To register for
it a company has to undergo a rigorous quality audit of its
procedures.”

“That’s right,”
Peter acknowledged John’s supportive comment. “Associated Finance
have informed me that they have decided to put their retail
businesses, that is all their Supermarket chains up for
registration for the quality standard. They asked me to meet with
their ISO expert, someone called Janet Simmons.”

“And how does
this affect us?” Michael asked.

“Two ways,”
Peter explained, beginning to enjoy holding the attention of them
all. “There is good news and bad news.”

“Good news
first,” Michael, Dorothy and Dermot said almost simultaneously, and
they all laughed.

“Good news is,
they have picked us out of their computer analysis as a major
supplier across their Supermarkets, particularly dominant in areas
of quality produce such as organic foods.”

“Don’t like the
sound of this,” Dermot said.

“No, no,” Peter
corrected. “It is sound. They are really into this quality standard
thing. The bottom line is that if we measure up they will make us a
preferred supplier. The way they were talking I would be of the
view that this could give us a hundred and fifty million in sales
to them in a year. It is a major foot in the door, if I say so
myself.”

“Now you are
talking,” Michael said warmly, “God I knew I raised an O’Byrne in
you Peter. This is great news. Will we be able to supply
Dermot?”

“Of course
Michael, but not immediately. We would need time to build up and so
maintain quality. However there is a way, initially we could do
joint ventures with a number of other suppliers, under our branding
of course. If you get the business Peter, we can supply.”

“Price?” James
said dryly, to bring Peter back to earth.

“Price?” Peter
replied, puzzled.

“Yes price. Did
they mention prices, margins and credit terms?”

“No,” Peter
said sounding deliberate. “I assumed we were discussing on the
basis of existing terms.”

“Sounds too
good to be true, do you want me to come back on this Michael?”
James asked.

“No. No, we
have to keep you out in New Business Development James. It’s
crucial for the long term. I would like my boy to handle this. He
has brought in the deal, so we should let him run with it.”

Peter sat back.
“Thanks for the vote of confidence Michael. I believe I can handle
this one. I’ll use Riseley where I can.”

“The bad news
Peter?” Dorothy asked quietly, “You said good news and bad
news.”

Dorothy was
unhappy with the turn of events. Peter was making a splash and him
hardly a wet week on the board.

“It is the ISO
Registration,” Peter explained. “Apparently to register for ISO a
company has to be able to demonstrate that it has inspected
suppliers, to confirm supplier quality standards and so on. So they
want to inspect us.”

“I don’t like
the sound of this,” Dermot commented.

“
They will want to inspect out various storage units and
process plants. Especially they will want to confirm that the
produce we supply as Organic is truly organic. They are using a
consultant to work on the proposal. I have to see their
representative and set up a visit with our people.”

“No problem,”
Dermot reassured. “We just have to be careful. We deal with a
number of cooperatives. We don’t want the Associated Finance buyers
to find a way to cut us out of the scene.”

“Don’t worry,”
Peter said, “We can work that one out. We sell branded don’t
we?”

“Fine,” Michael
said, satisfied. “The ball is in your court Peter. Keep us
informed. Let us now move on to the next agenda item. Dorothy you
have the final item on the agenda. And anyone who wants a coffee or
tea just take it on the run.”

Dorothy waited
a minute until everyone was settled again.

“Now our
pension fund backers have come up with a good idea” she began.
There was a respectful silence as they waited.

“They have
located a public quoted company. It is called ‘Howlett Holdings.’
It is quoted on the London Stock Exchange.”

“I know that
name,” Michael said. “They trade as O’Donoghue’s, the transport
company.”
There was a murmur as the others recognized the name.

“Did they have
the float behind us in the St. Patrick’s day Parade?” Michael
asked, beginning to make connections.

“I do believe
you are right,” Dermot said.

Dorothy and
Michael’s eyes met. Dorothy could sense his disapproval; he
remembered that Ann-Marie had made a date with one of the bikers.
She hoped it would not spoil his humour for her proposals.

“
We certainly do a lot of business with them,” Dermot
confirmed, “a good efficient outfit.”

“They have held
their Stock Market quotation because Howlett Holdings were quoted
in the UK long before Irish independence.” Dorothy continued. They
are considered safe, conservatively financed, well managed, but
cautious and unexciting.”