Rising costs cut profits at environmental firm

RISING COSTS hit earnings at Advanced Environmental Solutions (AES) last year, the latest figures show. Accounts lodged by the company, bought last year by State enterprise Bord na Móna, show sales increased by 11 per cent to €50.3 million in the 12 months to June 30th, 2007.

Sales costs grew by close to 17 per cent to €35.7 million while administrative expenses increased at a similar rate to €14.2 million. This left the company with operating profits of €302,600 in its 2007 financial year, compared with €1.5 million in 2006.

Bord na Móna agreed to buy AES in March 2007 for €60 million from its shareholders, who included financier Bill McCabe's Oyster Capital and individuals who held stakes through nominee accounts with stockbroking firms Davy and Merrion.

The deal was completed some time later and AES has since been fully integrated into the State company's operations.

It emerged this week that AES is negotiating the purchase of Goff Recycling in Rosslare, Co Wexford, for an estimated €4.5 million. The deal should be completed later this month, pending the approval of the Department of Communications, Energy and Natural Resources.

The figures lodged by AES with the Companies Registration Office recently show it had a strong balance sheet at the end of June 2007. Net assets stood at €11.4 million, slightly ahead of the position 12 months earlier.

AES specialises in recycling and resource recovery.

The company also holds the Irish licence for a combined biological and mechanical waste treatment and recovery system known as Bedminster.

Waste such as paper and plastics are now treated as commodities on international markets, and much of what AES recovers is sold abroad.

Recycling and recovery are set to play a key part in Bord na Móna's redevelopment. The group is also targeting alternative energy.