Profits speed up for Fermoy bypass firm
The operators of the €295m Rathcormac-Fermoy bypass in Co Cork last year recorded operating profits of just under €144,000 per week.
According to accounts just filed by Directroute (Fermoy) Ltd, the firm increased its operating profits marginally, going from €7.435m to €7.48m in the 12 months to the end of December last. This followed revenues at the firm going up by 2pc from €16.06m to €16.39m.
The firm also increased its pre-tax profits by 34pc from €1.52m to €2m, after net interest payments of €5.4m are factored in.
According to the directors' report, "revenues increased in 2014 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 directors state that "operating profit was higher than expected as some of the infrastructure upgrades were not completed and invoiced in 2014. The maintenance and upgrade programme will be continued in 2015 and profits are expected to reduce as a result of this investment."
The road was built as part of a Public Private Partnership (PPP) and opened in October 2006, eliminating one of the country's worst bottlenecks at Fermoy.