Earnings at plastics and environmental group One51 double
Earnings at Irish plastics and environmental services group, One51, surged by 53.1pc over the past financial year, driven by a strong performance at its expanding North American division.
The company, which is backed by financier Dermot Desmond, reported earnings before interest and tax of €55.2m for the year ending December 2016, while revenue leapt by 18.6pc to €433.9m, outstripping market expectations.
One51, attributed its earnings leap to robust growth in its US and Canadian operations as well as a full year contribution from IPL, the Canadian plastics firm in which it acquired a controlling stake in 2015 for €201m.
The company re-iterated it may move to full ownership of IPL "in certain circumstances" and stated the put liability or option to acquire the remaining 33pc of the firm rose to €77.2m by year end compared to €32.4m in 2015.
Alan Walsh, One51's chief executive, described the IPL deal as "transformational" when it was announced, claiming it would deliver access to new significant new markerts.
This morning he indicated further deals were on the agenda, and emphasised growth through acquisitions remained a key strategy.
"We see the potential to make acquisitions in the retail packaging and bulk packaging sectors in both Europe and North America."
He pointed out that One51 had morphed from a diversified investment company in to one "focused solely on plastics" within the space of a few years.
He claimed the latest results "support that strategy" and stated the "challenge now is to continue to grow our plastics operations, both organically and through acquisition, while continuing to integrate our previous acquisitions."
One51, which also counts beef baron Larry Goodman, as well as co-ops Kerry, Dairygold and Lakelands, among its shareholders notched up a sharp 57pc increase in profit before exceptional and non-recurring items to €17.9m.
However it booked a €1.9m loss on exceptional and non-recurring items and share of associated profits.
One51 offloaded its Irish recycling business in 2016.
The company paid over €200m when former chief executive Philip Lynch was at the helm for a string of metal recycling firms in Ireland and the UK.