One51’s debt lowest for six years

Niche investment firm One51 closed 2013 with its lowest net debt levels for more than six years, after slashing its borrowings by nearly €50m.

In a trading update, issued to shareholders yesterday, the environmental, renewable energy and plastics-focused investment company said that last year’s performance “exceeded expectations”. Net debt amounted to around €40m, as of the end of last year, down from €88.9m in 2012.

“From a balance sheet perspective,” the company said in its statement, “both net debt and leverage ratios, at year-end, were at their lowest levels in over six years.”

It added the business is now in a more robust position than at any time over the past number of years, and that “a clear strategy” regarding the development and growth of its core operating businesses in Ireland, Britain and China is in place.

“The substantial restructuring and portfolio rationalisation programme — carried out under the two-year action plan announced in 2011 — has been successfully completed. The group’s net debt position has been reduced to conservative levels, with long-term bank financing arrangements for existing operations now in place,” management said.

The group’s 2013 financial figures and annual report are due for publication, sometime during the second quarter of this year, and will “exceed expectations”.

As reported last weekend, One51 has recently agreed — with its main lenders of Bank of Ireland, AIB and Ulster Bank — a new €75m four-year term debt facility, which has a one-year extension option.

It is understood a substantial amount of that money — up to around €45m — could be used to fuel management’s expansion plans; with particular focus being on its plastics portfolio.

The company is keen to tap further into the lucrative Chinese market, with opportunities existing in areas such as plastic lids for baby food and coverings for computer disc coverings.

“One51 will focus its future development on its Plastics and Environmental Services businesses, while continuing to manage its investments for maximum value. While headwinds remain, in the form of depressed economic conditions and volatile commodity markets, One51 is now well-placed to meet these.”