Business Irish

Sunday 15 September 2019

Services firm One51 to reap €52m windfall from demerger of NTR

One51 chief executive Alan Walsh
One51 chief executive Alan Walsh

Michael Cogley

One51, the environmental services and plastics operator, is already reaping the rewards of its recent acquisition of Canada-based IPL and will be on the receiving end of a €52m cash distribution from NTR.

The company posted strong interim results in August that saw its revenue grow by 23pc and its earnings per share grow by 40pc and now it says that cross-selling opportunities are already present with IPL in its November trading update.

Group chief executive Alan Walsh, said that the company is looking to grow further.

"We are excited about the growth prospects in our operating businesses and are encouraged by the cross-selling and operational synergies already presenting themselves post the recent IPL acquisition.

"There remain a number of interesting growth opportunities which we are actively pursuing across both our Plastics and ClearCircle Environmental Divisions," Mr Walsh said.

One51 will also benefit from the demerger of Irish utility group NTR, a company in which it holds a 24pc stake.

NTR's demerger had been in the pipeline for sometime and the plan was approved back in September. One51 has been a vocal critic of NTR in the past ahead of the company's demerger.

The company said that it is set to receive a cash distribution of around €52m before the end of the year as a result of NTR clarifying its capital distribution plans.

In the company's trading update it said that its plastics division continued to perform strongly and that signs of recovery were seen in the majority of ClearCircle Environmental's end markets.

No changes were made to its expectations for 2015 and the company said that it remained confident in its ability to grow profitability.

An analyst with Davy Stockbrokers, Declan Morrissey, said that the update is a clear showing of the company's progress.

"One51's trading update provides further evidence of good operational progress with both divisions performing strongly year-to-date," Mr Morrissey said.

"The integration of IPL is beginning to deliver cross-selling opportunities with its existing plastics business."

Mr Morrissey also said that One51's interim results were ahead of what Davy had expected.

"One51 delivered strong H1 results that were ahead of both our revenue and EBITDA forecasts," he said.

"It grew revenue 10.2pc year-on-year to €142m and EBITDA 22.9pc year-on-year to €13.3m in the first half of the financial year."

Irish Independent

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