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Stormy One51 AGM reveals E12.7m losses

Thursday, September 27 11:37:35

Diversified Irish investment group, One51, a loss of E12.7 million in the first six months of this year, shareholders were told at a stormy annual general meeting in Dublin.

The company, whose investments include a clutch of waste management assets, the Irish Pride bakery and a 23.8pc stake in renewable energy group, NTR, had posted a profit of E10 million in the same period a year earlier.

The shareholders were told that it is likely that the group will undergo further "significant" losses this year and that its recovery will be on a "a multi-year turnaround" basis.

The company was hit by exceptional costs of E14.5 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 11.4pc to E193.7 million, while its earnings before interest, tax, depreciation and amortisation almost halved to E12.8 million.

Chief executive Alan Walsh told shareholders the company's near-term performance would "not be pretty" and there would be no "quick fixes" or overnight solutions in turning the company around and into an operating entity with prospects for growth.

The group posted total losses of nearly E109m last year and yesterday said this year would see further significant impairment charges and after-tax losses. First-half figures for 2012, published yesterday, showed a year-on-year drop in group revenue from E218.7m to E193.7m, a fall in pre-tax profits from E11.3m to E1m and a negative turnaround from first-half earnings per share of 10c to losses of 12.7c.

Net debt has been lowered from E156.6m to E100.5m in the past 12 months and proceeds from ongoing divestments will go towards lowering that further, while management is also in talks with its banks in a bid to extend loan maturities past 2013.