Directors say an ‘unsolicited and non-binding offer’ has been made for the institution
IMI’s 13-acre suburban campus in a largely residential part of Sandyford, in south county Dublin, is likely to be a key consideration in determining the value of the business. The site is close to the M50, and Dundrum Town Centre could potentially be developed for housing.
The unsolicited offer made to directors is under consideration, according to a note included in annual financial accounts for the year to the end of September 2023 that were filed to the Companies Registration Office (CRO) this week.
“Subsequent to year end, the directors received an unsolicited, non-binding offer for the business, which is under consideration. An estimate of its financial effect cannot be made at this time.
“There have been no other significant events affecting the group or company since the financial year end requiring disclosure in the financial statements,” the note says.
While the bid is confirmed in the institute’s annual financial results, any decision to sell the school – one of the first in Ireland to pioneer executive education and corporate training – will be made by University College Cork (UCC), which bought the IMI for €20m eight years ago.
UCC took control of the institute in 2016 in a €20m deal that was described at the time as being aimed at securing the Dublin institute’s future as well as bolstering its engagement with industry.
The institute was originally member owned, having been established by business leaders to develop training programmes and leadership training for industry.
It has 280 corporate members and provides a range of masters, diploma and short courses as well as providing conference facilities.
The business has been loss making in recent years. Last year management issued a protective notice to staff.
The financial accounts filed this week show revenue fell in 2023 and losses increased. Turnover for the 12 months to the end of September 2023 was €11.4m, down from €12.5m in 2022 and 2021.
The annual deficit increased to €1.1m in 2023 from a modest €50,000 a year earlier. The accounts, filed with the Companies Office, include a warning that its business model faces significant challenges.
“While the impact of the Covid-19 pandemic on the group receded, macroeconomic factors remained challenging for executive education.
“Market conditions, including the changing business needs of the company’s clients, escalating direct and indirect costs, and market competition have affected the company’s ability to return to profitability,” it says.
IMI launched a redundancy scheme last year in an effort to cut costs.
The latest financial results say that in the 2023 financial year, management, supported by the board, developed and started a programme of turnaround activities and strategic initiatives to address the financial position.
It included a reorganisation and portfolio review that was designed to improve business performance in the context of the external factors which resulted in a collective redundancy programme.
The institute is chaired by Dr Pamela Byrne, CEO of the Food Safety Authority, and headed since the start of last year by interim CEO Shane O’Sullivan, a career banker who was most recently a senior executive at Permanent TSB.
