ESB International has reported strong turnover growth for 2002, but pre-tax profits fell marginally to €26 million.
The company expects profits to grow substantially in the next few years following a period of heavy investment in various international projects. Pre-tax profit was down from €26.8 million in 2001 to €26 million.
The company, which has become a serious generator of profits for the ESB in recent years, received €144 million of its turnover from electricity sales and €94 million from electrical contracting. While sales remained the strongest part of its business, the company produced €56 million of turnover from engineering and consultancy services for other utilities.
According to the accounts: "The group has a successful year in 2002. Over the past number of years the group has been restructured into clearly defined business units focused on specific markets in the power sector.
"In addition, alliances have been formed with strategic partners in order to broaden the group's market base."
On future plans, the accounts added: "The directors plan to continue to broaden the product range and geographical spread of the business in the coming year."
Turnover rose from €314 million to €392 million, but the profit on this turnover was reduced by a €10 million increase in operating expenses. The retained profit was up, however, from €19 million to €21 million.
The company had accumulated profits of €70.5 million on its profit and loss account. The international division now employs 1,025 people, up from 792 in the year before.
Consequently payroll costs rose to €58 million from €46.5 million in 2001.
The company's profits were boosted during 2002 by the €1.1 million sale of a business called ESB International Alberta.
However, ESB International disposed of significantly more businesses in 2001 and the return that year from sales was €3.9 million. The company operated in many areas according to the accounts in 2002, including the Netherlands, Spain and Derry in Northern Ireland.
A related company, ESB International Investments, holds shares in certain wind and hydro power companies, the accounts added.
