INVESTMENT GROUP One51 made a loss of €104.6 million in 2010, according to its annual report, which was sent to shareholders yesterday.
This was largely the result of a €95 million writedown in the value of its 23.8 per cent holding in Dublin-based NTR, which operates a portfolio of investments in waste, water, wind power, solar and toll roads.
The report also shows that former chief executive Philip Lynch earned remuneration of €1.48 million last year, an increase of 6.5 per cent on 2009.
This comprised a basic salary of €672,171, benefits-in-kind of €67,638 and “other” payments of €740,000.
Mr Lynch also earned €154,600 in fees for serving on the boards of CC, FBD, OpenHydro Ltd and the National Paediatric Hospital Development Board.
The €740,000 payment related to “amounts awarded” by the remuneration committee in March 2009, the report states.
There was confusion yesterday as to the reason for this payment.
Some sources suggested it was a bonus for performance in 2009. Others said it was a payment made to reflect Mr Lynch’s contribution in founding the company, his role in fundraising events and his overall contribution to the group.
One51 declined to comment and Mr Lynch could not be reached.
It is understood, however, that the €740,000 has not yet been paid to Mr Lynch.
It is believed Mr Lynch offered to waive this payment and to take a 20 per cent cut in his salary in an effort to reach an amicable arrangement with the company that would have allowed him to see out his contract, which was due to expire in 2014.
Mr Lynch was dismissed by One51 on July 1st this year. No reason was given by the company for his dismissal, and Mr Lynch has so far declined to comment.
The Cork executive had been under fire from some shareholders in 2010 over the performance of the business and corporate governance standards.
One51’s turnover rose last year by 14.3 per cent to €375 million. Net income before exceptional items was €20.7 million, up from €17.6 million in 2009.
Exceptional items of €125.3 million pulled the company into the red. It lost €10.9 million in 2009.
Its investments include Irish Pride, Irish Continental Group and Greenore Port.
In a note to shareholders, One51 chairman Donal Buckley described trading in the first six months of 2011 as “satisfactory” given the “harsh economic environment”.
“The One51 investment in NTR plc remains a matter of concern for the board,” he added.
Mr Buckley said the strategy going forward would be one of “consolidation and rebuilding for the future”.
“Costs will be very carefully managed going forward, with continued debt reduction remaining a priority,” he explained.
Net debt was €146.9 million at the year end, down from €163.9 million in 2009.
One51 closed 2010 with a net asset value per share of €2.56, down from €3.66 in 2009.
The group will hold its agm on September 14th.