Viridian reports strong first-half profit growth

Viridian, the utilities group, has reported strong profit growth in the first half of the year and predicts further growth from diversification and expansion into the electricity market in the Republic.

In the half-year, Viridian's sales rose 7 per cent to £225 million sterling (€347 million) with pre-tax profits up to £44.8 million from £41.5 million. Notably, there was an increase in profits from the Viridian Capital operations to £8.7 million from £3.3 million. These non-electricity operations include the Sx3 software group, the Open and Direct financial services company and the Nevadatele.com internet joint venture with Energis.

Viridian's business is split between the regulated electricity distribution operations and the non-regulated Viridian Capital businesses and electricity operations outside Northern Ireland.

Viridian chairman Mr Philip Rogerson said the group expected the remaining planning issues related to its proposed gas-fired power station joint venture with CRH in Dublin to be resolved within the next few months. Its Energia energy supply company is planning to become involved in the electricity market in the Republic next February.

Viridian, the North's biggest public company, also plans to look for opportunities in Britain and recently doubled the capacity of the electricity interconnector to Scotland to 500 megawatts.

Viridian said higher returns on energy came through cost reductions, although a reasonably buoyant Northern economy boosted top-line growth by around 3 per cent a year.

The results were slightly ahead of forecasts, and Viridian shares climbed 9 1/2p to 585p sterling.