Topaz reports €7.24m profits

TOPAZ Energy swung back into profit last year, according to latest accounts filed with the Companies Office.

The accounts show that Topaz — which came into being six years ago through ION Capital’s takeover of the Irish retail operations of Shell and Statoil — generated pre-tax profits of €7.24 million in the 12 months to the end of last March. This was a turnaround from the previous financial year, when the company recorded a pre-tax loss of €19.1m. The firm’s operating profit amounted to €21m, up from a loss of €483,000 in the previous year, but turnover fell from just over€3bn to €2.35bn.

While there was a continuing fall in demand in the oil sales and distribution division (even though the company maintained market share in a dwindling market), Topaz’s forecourt and convenience retailing business enjoyed what management called “an exciting year” with non-fuel sales up by 0.7%, despite a fall of 6% in the total convenience market.

“The Topaz brand continues to achieve the highest ratings of any forecourt brand in the Irish market, past or present, on all metrics,” management added.

Since the start of its current financial year, Topaz has entered the Irish aviation fuel market via a 50-50 joint venture with Shell Aviation Ireland and has acquired Leinster Petroleum, a home heating supplier trading in Louth, Meath and Westmeath.

Topaz said that trading in its current financial year has been “in line with expectations” and despite the ongoing recessionary environment and continuing volume decline, EBITDA (earnings before interest, tax, depreciation and amortisation) to date are marginally ahead of last year.”