NTR sees losses rise to €210.6m

Renewable energy group NTR saw its losses rise to €210.6 million in the year to end of March 2010, from €22

Renewable energy group NTR saw its losses rise to €210.6 million in the year to end of March 2010, from €22.4 million a year earlier.

Chief executive Jim Barry said this was not a poor trading outcome, as a core part of NTR's business model involves investing and building value in pre-revenue development companies.

Some €106.5 million was spent on developing NTR's solar and wind energy businesses, and covering central overheads, during the financial year, and this had a negative impact on the group's bottom line.

On the trading side of NTR's portfolio, its core operating businesses Greenstar Ireland and Greenstar North America delivered earnings before interest, tax, depreciation and amortisation, (and impairments), of € 30.8 million, down from €35.5 million a year earlier.

Deliberate action had to be taken in these waste management businesses in order to maintain sustained profitability, because of the "horrendous macro environment", Mr Barry said.

He added that trading conditions remain challenging for Greenstar because the macro-economic cycle hasn't had "the lift we had all hoped for".

A net impairment charge of €96 million was recorded against NTR's waste management and solar businesses. On the waste management side, NTR took the view that it should write down some of the "carrying value" of the Greenstar businesses because of the macro-economic context is so tough, he said. The decision by NTR's solar division to delay the roll-out of new technology also contributed to the overall impairment charge.