Recycling firm Thornton's posts €2.8m pre-tax loss

THORNTON’S RECYCLING, one of the State’s largest waste operators, posted a pre-tax loss of €2.8 million last year, due in part to an impairment charge of €1.7 million.

At an operating level, the company made an operating loss of €11,733 during the year, compared with a profit of €1.8 million in 2010. Shareholders’ funds stood at €19.9 million at year’s end, compared with €21.7 million the previous year.

Revenue at the firm grew by 5.4 per cent to €29.2 million, up from €27.7 million the previous year, mainly as a result of a 20 per cent increase in its domestic waste business.

Its commercial business declined 4 per cent last year.

Costs at the family-owned firm rose to €23.2 million in 2011 from €21.1 million the previous year.

According to the accounts, the main reason behind the cost rise was an increase in the Government landfill levy.

The levy has increased again this year, rising to €65 per tonne in July.

“This, coupled with higher gate fees from disposal outlets, will mean an increase in costs,” the accounts state.

Thornton’s Recycling was founded by Pádraig Thornton in 1979. The company, which has its headquarters in Park West in west Dublin, offers residential as well as commercial waste collection services in Dublin, Meath and Kildare.

It employed 234 people last year, up from 214 in 2010. Its wage bill stood at €8.9 million, up from €8.2 million the previous year.

Tonnages handled increased by 11 per cent in 2011, according to the accounts, while it invested €4.7 million as part of an ongoing capital investment process. The business currently has a recycling rate of 83 per cent.

Last month, waste company Greenstar was placed into receivership after a consortium of seven banks called in loans of €83.2 million.

Bord na Móna wrote down the value of its waste company, AES, by €23 million last year, according to its latest accounts.