NTR said yesterday that it was looking at a stock market listing for its Irish Broadband business as it repositions itself as a renewable energy and waste management company.
The infrastructure group, which announced a 33 per cent increase in earnings last year, said it was shifting its strategic focus from developing and operating infrastructure in Ireland. Instead, its new aim is to become "a leading international developer of sustainable solutions in renewable energy and recycling-led waste management".
As a result, the group, whose divisions include the Greenstar waste management business and alternative energy company Airtricity, believes the broadband business no longer fits its strategy. It will review the options for this business over the next 12-18 months, including an independent stock market listing.
It will retain its roads business and it remains committed to tendering for the remaining Irish toll roads, but no international expansion is planned in this sector. Instead it will look at building Greenstar, Airtricity and its new biofuels business Bioverda overseas.
"At the moment 80 per cent of our business is in Ireland. In three years' time, we would hope that 80 per cent will be overseas," chief executive Jim Barry said.
The company, which reported earnings before interest, tax, depreciation and amortisation (EBITDA) of €70.4 million last year - up 33 per cent on 2004 - plans to invest at least €1.5 billion in new assets over the next three years.
It believes that three factors - climate change, concerns about security of energy supply and resource depletion - will drive the waste and energy sectors.
Mr Barry said the group, which spent €221 million on capital expenditure and acquisitions last year, was not considering a flotation of any of its other businesses aside from Irish Broadband at present.He added that it would be at least 2008 before a stock market listing for the group, or any of its divisions, came on the agenda again.
To fund its expansion, the group may have to tap existing shareholders, including the three groups that control nearly 80 per cent of the company and who will benefit from a 10 per cent increase in its dividend to €4.76 cent a share.
NTR founder Tom Roche holds 45 per cent of the company, the Philip Lynch-controlled One51, formerly the IAWS Co-op, built up a 26 per cent stake last year, while Standard Life owns around 7 per cent.
Last year, overall revenue rose by 37 per cent to €361 million.
The company's waste division, which includes MRL in the UK as well as Greenstar, reported strong growth with EBITDA up by nearly 34 per cent to €31.8 million.
NTR's energy division saw EBITDA increase by 41 per cent to €15.1 million, while earnings in its tolling business were up by 40 per cent to €30.8 million. Only the telecoms division lost money as its losses widened to €7.3 million from €3.5 million, reflecting significant ongoing investment.
NTR had net debt of €416 million at the end of 2005.
