Toll road operators see profits increase to €7.4m
Published 05/08/2014 | 02:30
The operators of the €295 million Rathcormac-Fermoy by-pass in Co Cork last year recorded operating profits of over €140,000 per week.
Accounts just filed by Directroute (Fermoy) Ltd to the Companies Office show the firm increased its operating profits by 8pc going from €6.8m to €7.43m in the 12 months to the end of December last.
This followed revenues at the firm going up by 3pc from €15.5m to €16m.
The figures show that the firm also increased its pre-tax profits by 47pc from €1m to €1.5m after net interest payments of €5.9m are factored in.
Revenues increased in 2013 due to an increase in traffic, according to the directors' report.
"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," it added.
The directors state that "operating profit was higher than expected as some of the planned road improvement programme was delayed due to weather and contractor scheduling issues".
The programme will be continued and expanded upon in 2014 and profits are expected to decrease as a result of this investment. The road was constructed by Directroute Fermoy as part of a Public Private Partnership (PPP) and opened in October 2006 eliminating one of the country's worst bottlenecks at Fermoy.