NTR profits expected to rise 13% to €15.5m

NTR is expected to report post-tax profits up 13.4% to €15.5m for 2004 in the coming weeks as the shares fall back from their record high of €27 to €23.50.

Fri, 15 Apr, 2005 - 01:00

Conor Keane, Business Correspondent

NCB Stockbrokers analyst Murray McCarter said they expect the result will highlight strong earnings progress as well as substantial development in the waste, energy and roads businesses.

“We forecast an increase in profit before tax and goodwill amortisation but including gains on the sale of fixed assets of 9.4% to €22.0m. Profit after tax and goodwill amortisation is forecast to grow by 13.4% to €15.5m and EPS (before goodwill) should rise 12.4% to 84.0 cent,” he said in a note circulated to clients yesterday.

Mr McCarter said that NTR Roads will again be the main driver of performance in 2004, with an increase of 44% in EBITA (earnings before interest, taxes, depreciation and amortisation) to €18.1m projected.

“Growth will primarily be driven by increased volumes on the West Link facilitated by a full 12-month operation of the second bridge in 2004 and the benefit of tariff increases,” he said.

NTR has majority holdings in its waste and wastewater division, Greenstar 85% and Materials Recovery Ltd 71% and NCB anticipate EBITA of €13.9m compared with €14.8m in 2003. Greenstar profits are expected to be unchanged and losses at MRL modestly higher.

“Work continued on the Knockharley landfill site (commissioned early-2005) and the acquired collection & transfer businesses were integrated. An update on further landfill plans and the development of MRL will be expected,” he added.

Airtricity, 51% NTR owned, is expected to report EBITA of €4.5m (2003: €1.6m), including a disposal gain of €7.8m. Airtricity’s customer numbers should show strong growth during the year. Airtricity completed a €88m equity issue in 2004, with NTR retaining its 51% stake.

The company’s telecoms division, Irish Broadband, is expected to show further development in its business despite intense high profile competition from eircom, BT and Smart Telecom.