NTR moves away from toll roads

INFRASTRUCTURE company NTR continued to reduce its dependence on toll roads last year as it saw substantial growth in its waste and energy businesses.

Overall turnover rose 47% to €211 million but pre-tax profits increased by just 9.1% to €16.8m, reflecting the group's investment in developing businesses that have yet to reach their full potential.

Chief executive Jim Barry said the group was in a "transitional" phase and that the full benefits of its diversification from toll road operator to general infrastructure developer would not be felt until late 2004 and 2005. Mr Barry said the group had a well-balanced portfolio of businesses at different stages of development and this would provide strong and sustainable growth in the years ahead.

Toll roads accounted for just 17% of revenue, or €36.2m, but delivered almost two-thirds of group profits with a contribution of e11m. Waste revenues, generated mostly by Greenstar, in which NTR has an 88% stake, went up from €59m to €79m. But renewable energy revenues almost doubled to €92m as NTR's investment in wind farm operator Airtricity began to bear fruit. Airtricity recorded its first profit, which NTR said was a significant milestone. Mr Barry said there was a need for greater clarity from the power authorities about the role for windfarms in meeting the country's energy requirements. The future for windfarm developers had become less certain in recent months when the energy regulator announced a temporary ban on connecting new windfarms to the national power network on technical grounds.

Mr Barry said other countries could handle wind energy accounting for more than 20% of national requirements and that Ireland was "nowhere near" meeting its renewable energy commitments under the Kyoto treaty on greenhouse gases.

NTR was successful during the year in winning the contract to build and operate the Dundalk Western Bypass project, which will complete the motorway between Dublin and the Northern Ireland border. The company joined forces with Dutch construction giant HBG, which owns Irish civil engineering firm Ascon, and Portuguese toll road operator Dragados to scoop the project, which is worth €160m. NTR's consortium is also in the running for a new Waterford city bypass to link with the Cork-Rosslare road, as well as the proposed motorway through Meath between Clonee and Kells, which will link Dublin with the north-west.

On the waste front, Greenstar increased the volume of waste handled by 25% and has received the necessary approvals to build new landfill sites in Meath and Wicklow. The company also reported satisfactory progress from its investment in Materials Recovery, a start-up waste management company in Britain.

NTR's new broadband subsidiary Irish Broadband was successful in rolling out its network in Dublin during the year and was awarded licences to cover 80% of the population.