One51 forecasts return to full-year proft

Investment company One51 has projected an overall profit this year, for the first time since 2006, following a series of cost-cutting and restructuring measures.

The company reported a profit of €2.9 million on the back of €148 million in revenues for the six months to the end of June. This compares to a loss of €12.7 million during the same period last year, on higher revenues of €193.7 million.

The group reduced its central overhead cost by approximately €5 million and its overall headcount by 50 per cent. The loss-making UK materials recycling business was closed, while the Irish metals recycling business was restructured.

A number of non-core, non-performing assets were sold, realising €70 million.

Debt reduction
Net debt was reduced by €62 million in the 18 months to June-end, with a further debt reduction anticipated during the second half of this year. The net debt is forecast to be in the region of €50 million to €55 million at the end of the year, down from a peak of €213 million.

Ebitda before exceptional items was €11 million in the first half, down from €12.8 million in 2012. Last year’s figure was inclusive of a €2 million dividend from the group’s shareholding in Irish Continental Group.

The company reported a €3 million improvement in trading performance between the first half this year and the same period last year, on a like for like basis.

After-tax loss
It made an after-tax loss of €116.1 million last year and a loss of €109.7 million the previous year. In 2012, its pre-tax loss was €2 million. However, based on trading year-to-date, chief executive Alan Walsh said the group expects to report a profit before tax in the year to December 2013.

The company expects to receive in the region of €24 million from investment group NTR where shareholders recently approved the return of up to €100 million to them.

Mr Walsh said the proceeds would go towards paying down debt.