Fermoy bypass firm Directroute returns to profit

The operators of the €295m Rathcormac-Fermoy bypass in Co Cork last year recorded operating profits of almost €145,000 per week.

Newly filed accounts for Directroute (Fermoy) Ltd show a marginal rise from €7.48m to €7.53m in operating profit last year. Revenues rose 2% to €16.75m.

The accounts also show the company returned to profitability on a pre-tax basis recording a profit of €6m after a pre-tax loss of €4.9m in 2015.

However, the positive swing arises mainly from a change in accounting rules introduced for 2015 where the company recorded a fair value gain of €3.79m on derivative financial instruments compared to a loss of €6.9m under the same heading in 2014.

According to the directors’ report, “revenues increased in 2015 due to an increase in traffic.

It is expected that traffic levels will increase in the future as motorists continue to recognise the benefits of the motorway in terms of safety, convenience and road quality”.

The report also said that operating profit was higher than expected “as some of the infrastructure upgrades were not completed and invoiced in 2015.

“The maintenance and upgrade programme will be continued in 2016,” it said.

The road was constructed by Directroute Fermoy as part of a public private partnership and opened in October 2006 eliminating one of the country’s worst bottlenecks at Fermoy.

Last year, toll income rose from €11m to €11.9m with operational payments falling from €5.39m to €4.67m. To access the route, motorists pay €1.90 per car with HGVs with four or more axles costing €6.10.