Thornton suffers €12.2m loss after asset impairment
Published 01/12/2010 | 05:00
Padraig Thornton Waste Disposal, one of the largest waste processing firms in the country, posted a €12.2m loss last year as it impaired its fixed assets by €12.4m, according to accounts just filed for the company.
Turnover at the Dublin-based firm, which operates as Thornton Recycling and also provides skip hire and vehicle scrappage services, slumped 27pc to €28.4m during 2009, while operating profit more than halved to €1.3m from €3.2m in 2008. Pre-tax profit, before the impairment, sank to €347,000 last year from €1.3m in 2008.
The company was founded by the late Padraig Thornton in 1979.
Directors at the company, which employed more than 200 people at the end of last year, noted its "significant decline" in sales and profits last year was principally related to aggressive competition for material as waste volumes continued to decline due to poorer consumption patterns and a lack of economic confidence in Ireland.
"Another trend experienced in 2009 was the number of companies going out of business and the continued decline in the construction and building sector -- this also had a negative impact on volumes and sales," the directors added.
They pointed out that a number of rationalisation steps had been taken in order to improve the company's position in 2010 and beyond, while the company had continued its "aggressive" debt reduction policy without affecting the daily cash requirements of the business.
The group's debt levels decreased from just under €25m at the end of 2008 to €20.8m at the end of last year. The amount of debt repayable in five years or more fell to €8.3m from more than €13.6m.
Last year, the firm invested €2m in solid recovered fuel technology, which enables fuel to be created from mixed waste that is subsequently suitable for the generation of power in large manufacturing processes.