SWS group announce 31% profit hike

SWS Group of Bandon has announced a 31% boost to pre-tax profits of €4.2 million on a turnover of €23.8m.

It confirmed also that negotiations for sale of key parts of the business are continuing with IAWS Co-op.

Philip Lynch of IAWS Co-op has offered €64m for the energy, waste management and outsourcing elements of the business.

Under the terms €42.5m would be paid a year after completion of the takeover and the remainder paid out over three years provided profit targets were met.

How many jobs will transfer under the terms of the deal has not been decided and employees in the company are still in the dark about what the future holds for them, according to a well placed source.

However the sharp increase in profits confirms the overall attractiveness of the group to IAWS currently in the process of changing its name to One51 and its status from a co-op to a private company.

Mr Lynch is currently transferring assets in IAWS to One51 worth an estimated €230m.

He has also bought a 26% minority stake in NTR, operators of the national toll roads and a major player in wind energy and waste management.

SWS has operations in the renewable energy, waste, business process outsourcing, business services and agricultural areas.

Group chairman Raymond Collins said the results were good and “we continue to make very significant progress against the ambitious targets” set out by the group’s strategic development plan.