NTR profit slips in short report period

NTR, which recently sold its 50% stake in the West Link toll bridge to the State for €600 million, saw its net profits fall to €14m for the year to March 31, 2007.

That is well down on the profit of €22.2m for the 15-month period to March 31, 2006.

The reversal reflects capital spending by the group which topped €752m for the year.

Above the line earnings before interest, tax, depreciation and amortisation rose 17% to €79.4m.

Earnings per share fell from 11.5c to 6.7c, but the group is proposing a 10% increase in its final dividend to 3.59c per share.

Total sales for the period also fell €21m to €446m, reflecting the short 12-month reporting period.

Waste management and the tolling operations contributed the bulk of the €14m profits while the wind farm business lost €3.9m, bioenergy €5.1m and the broadband division €10.5m. The latter is not for sale despite the losses, the group said.

The family of Tom Roche are the major shareholders in the business, while One51 also owns 26%.

The group also announced yesterday it has bought two recycling plants in the US, one in Pittsburgh and the second in Illinois.

NTR chief executive Jim Barry said group’s focus on renewable energy and sustainable waste management reflected the shift taking place in global thinking on such issues.

“This is a five to 10-year play in this space. There’s going to be dramatic changes to the way industrialised economies, both mature and developing come to terms with energy security and climate change.”

During the year total investment in NTR rose 200% to €752.6m as the group expanded globally.

In the US, Airtricity Inc plans to raise up to $800m in fresh equity in September. That move could see almost 50% of Airtricity sold to a financial investor or to another key player, said Mr Barry. NTR would retain its 51% stake.

The company’s report showed:

* Capital investment in the year was €752.6m, a rise of €501m.

* Total assets rose €979m to stand at €1.96bn at the year end.

* Net debt also shot up to more than €901m from €472m.

* New equity raised amounted to €320.5m.

* Over the 12 months corporate and project debt raised hit €575.6m against €273m in the 15 months to March 31, 2006.

On the future financial needs of the group, which plans a €3 billion investment at least in the US over the next five years, across its core operations Mr Barry said the group would have to consider further equity raising in 2009 that could involve floating the group.

That was only “one option”, he stressed.

Finally, the group said the West Link windfall of €600m has been securitised to an up-front capital sum of €488m that will be included in the current year’s figures.