NTR profit surges 38% to £4.4m

Buoyant economic conditions, combined with an increase in traffic on the WestLink, helped boost the after tax profits of National Toll Roads to £4.4 million for the six months to June 30th. It represents an increase of £1.2 million or 38 per cent over the same period last year.

Traffic at the West-Link increased by 28.5 per cent to 9.8 million vehicles during the period, while gross toll revenue increased to £9.8 million, a rise of 30.2 per compared to the six months to June, 1997.

Traffic on the East-Link also increased, by 3.7 per cent to 3.6 million vehicles, and toll revenue increased to £2.4 million, a rise of 6.4 per cent over the same period last year.

National Toll Roads' (NTR) share of surplus toll revenue on the East-Link increased by almost 13 per cent to £560,000. NTR receives 58.3 per cent of toll revenues from the East-Link bridge, with Dulbin Port getting 25 per cent and Dublin Corporation the remainder.

The NTR chairman, Mr Richard Hooper, said prospects for the remainder of the year are favourable, particularly for West-Link, which continues to benefit from the growing attractiveness of the M50 as a city by-pass route. However, he said, longer term increases in profit levels will be more "mundane", due to "the maturity in the traffic pattern at West-Link and the increasing impact of the State licence fee.

This fee, which is paid to the Exchequer once traffic figures reach a certain level, rose by almost £1 million this year to £2.2 million.

Pre-tax profits rose 27 per cent to £6.3 million in the six months to June, while basic earnings per share rose from 17.7p to 24.2p.

The directors have decided to pay an interim dividend of 14p per share, an increase of 33 per cent on last year's figure. The major shareholders in National Toll Roads are Conor Holdings, an investment company owned by the Roche Family, Standard Life and Bank of Ireland Asset Management.

Meanwhile, NTR said yesterday that it had begun installing a new electronic toll collection system at both the East-Link and the WestLink. This will enable motorists to pay their tolls in advance and use an electronic tag to travel across the bridges. The normal toll collection methods will also be retained. The company said it would also be interested in "actively participating" in public-private partnerships in any suitable projects which may arise. The Government recently published a study on the issue which would involve the private sector funding projects such as the Dublin Port Tunnel and the new peat-fired electricity generating station in the midlands.