One51 profits up 14% on back of cost cutting

ONE51, the investment group headed up by former IAWS chief Philip Lynch, has reported a 14% year-on-year increase in first half earnings before interest, tax, depreciation and amortisation (EBITDA) to €26 million.

The improved results for the six months to the end of June, which also featured a 26% increase in turnover to €190m, were attributed to recovering volumes, stronger prices and a reduction in costs in the group’s environmental services division.

Mr Lynch said that One51 is “performing ahead of budget and generating strong operating cash flows”.

He said the group’s investment portfolio is performing well and yielded cash dividends of more than €4m during the period in question.

One51 has a diverse range of investments, including bakery Irish Pride, renewable energy specialists NTR and Open Hydro and freight and ferry business Irish Continental Group (ICG).

A group of independent shareholders, led by former divisional head Gerry Killen and calling itself Campaign for Change at One51, is lobbying management for a change of focus towards the cleantech industry and the disposal of non-core investments. It will also be looking for non-executive representation on the One51 board at the annual general meeting next Wednesday.

The group said the unaudited nature of yesterday’s results “highlight financial transparency issues” at the group. It said three-quarters of the investment portfolio company’s minority stakes offer “no possibility of providing a meaningful return” and the board has failed to address core issues of concern to shareholders.

However, Mr Lynch said yesterday that recent investments in One 51’s environmental services and renewable energy divisions now bring the company’s invested capital in the cleantech sector to over 75%.

“We look forward to continued development as 2010 progresses,” he added.