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Sunday 19 February 2017

One51 outlook positive despite 13pc decline in profits

Published 21/05/2010 | 05:00

One51 chief Philip Lynch
One51 chief Philip Lynch

PHILIP Lynch's One51 suffered a 13pc fall in profits last year but is projecting better results in 2010 as it enjoys "positive" pricing trends and pushes lower costs.

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The firm's results and outlook are revealed in a letter sent to shareholders, which also details two renewable energy investments that have the potential to significantly increase One51's renewables footprint.

One51's recorded a turnover of €328m last year, down €105m on 2008, as it drew revenue from a range of businesses spanning environmental services, renewable energy, Irish Pride bread, as well as several listed and unlisted investments.

The revenue delivered pretax profits of €45.2m.

"While this result is about 13pc lower than the previous year, we believe it is a satisfactory performance in a very difficult environment," Mr Lynch told shareholders in the unlisted company.

The 2009 year also saw One51 book exceptional costs of €44.4m, as it wrote down its investment in Irish Ferries' owner ICG by €10.8m and booked another €33.6m after marking other investment assets to market and revaluing property, including its iconic Thomas Street headquarters in Dublin 8.

Despite this, Mr Lynch says One51 remains "confident that ICG represents a sound investment", while he also reiterates One51's commitment to its stakes in NTR and Open Hydro.

Mr Lynch's shareholders' note also reveals that One51 has snapped up a controlling stake in Island Renewable Energy, a venture headed by former NTR executive Michael King, and has made an investment in Pioneer Green, a company fronted by former Airtricity executive Andrew Bowman.

This is understood to be for less than €10m, but One51 sources stressed their "strategic" significancet.

One51's Environmental Services division, meanwhile, has had a "satisfactory start" to 2010, and will soon launch a "unique brand" that will "reveal the scale of the business" and help reduce costs.

Irish Independent

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