One51 group loses €12.7m in first six months of year

TROUBLED IRISH investment group One51 made a loss of €12.7 million in the first six months of this year, shareholders were told at a stormy annual meeting in Dublin yesterday.

This compared with a profit of €10 million in the same period of 2011 for the company, whose investments include a clutch of waste management assets, the Irish Pride bakery and a 23.8 per cent shareholding in NTR.

The group was pushed into the red by exceptional costs of €14.5 million, comprising a termination provision relating to the closure of the Recycling UK South business, losses on the disposal of the group’s shareholdings in listed companies ICG and IFG, and redundancy costs.

Chief financial officer Pat Dalton told shareholders that “further significant after-tax losses will likely arise in 2012”.

Turnover declined by 11.4 per cent to €193.7 million, while its earnings before interest, tax, depreciation and amortisation almost halved to €12.8 million.

Its interim pre-tax profit slumped to €1 million from €11.3 million a year earlier.

The decline in profits was mainly driven by a contraction in margins in the ClearCircle Environmental operating businesses.

At the half-year stage, One51 had bank loans of €161.5 million, which expire at the end of June 2013. Mr Dalton said talks have commenced with its lenders to secure new borrowing facilities.

One51’s net debt stood at €100.5 million at the end of June.

Chief executive Alan Walsh and chairman Denis Buckley came in for heavy criticism from shareholders about the performance of the company and their stewardship. Well known accountant John McStay called for a poll to be held in relation to a resolution to re-elect Mr Walsh to the board.

Mr McStay has a personal shareholding in One51, but was also acting as a proxy for other shareholders, including former chief executive Philip Lynch, who was sacked by the group in July 2011.

Mr Walsh comfortably survived the poll on his re-election, gaining the support of 86.5 per cent of those who cast their votes.

Mr Walsh told reporters later he hoped to conclude the sale of Irish Pride by the end of this year.