Tolls clock up bulk of NTR's €18m profits

Utility group NTR, which is responsible for the M50 tolls, made profits of more than €18 million last year, according to figures released yesterday.

Turnover at the combined roads, waste and energy business grew by close to 30 per cent in 2004 to €273.6 million from €211 million the previous year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 16.4 per cent to €53.6 million from €46 million.

Profit before tax increased 8 per cent in 2004 to €18.16 million from €16.8 million the previous year. Post-tax profit was up 20 per cent at €17.2 million.

The group's balance sheet at the end of 2004 also showed considerable growth. Fixed assets stood at €416.7 million, up 60 per cent on 2003. Chief executive, Jim Barry, said this was largely due to the group's €202 million capital investment programme during the year. Similarly, its debt was up €100 million at €271.5 million.

The group's 50 per cent share in wind energy business, Airtricity, was the biggest contributor to revenues, and was responsible for €126.7 million, compared with €92.2 million in 2003.

Its Greenstar waste management business generated €81.8 million in turnover in 2004, compared with €75.8 million the year before.

Roads, including its east and west link tolling plazas in Dublin, generated €45.5 million in revenue in 2004, compared with €35.6 million the previous year.

Other businesses, including its materials recovery arm in the UK and its developing wireless broadband operations in this country, contributed €19.7 million to sales last year, as against €7.5 million in 2003.

Roads were the biggest contributors to the company's €27.9 million profit before interest and tax. Its tolling activities earned €15.4 million in profits in 2004, compared with €11 million the previous year.

The company yesterday defended its tolling business, which came under fire in recent weeks. Finance director, Michael Walsh, pointed out that it contributed €33 million to the public purse last year.

Mr Barry said that the State gets €1 from its current €1.80 toll charge. The company itself makes an operating profit of 35 cent from this charge.

Waste was the next biggest contributor to profits, at €11.7 million. This was down €1.5 million on 2003. Mr Walsh said this was due to ongoing investment in its UK materials recovery business, which lost money last year and is not expected to break even until 2006.

Energy contributed €5.4 million to profits in 2004, well up on the €1.5 million it earned in 2003. The broadband business lost €4.6 million.

IAWS Co-op spent €125 million building up a 26 per cent stake in the company in January and February. Mr Barry said he did not expect the co-op to bid for the company. "Our understanding is that they are medium-term value investors and they are happy with what they see in NTR," he said. "We do expect ongoing contact with IAWS."