NTR plc Reports Financial Results for Year Ended 31 March 2011

August 02 2011

Revenues from core businesses increase 35% to €329.4 million
Decision taken to write down solar investments


Dublin, 2 August 2011:  NTR plc, a leading investor in renewable energy and sustainable waste management businesses, today announces its financial results for the year ended 31 March 2011.

The Group’s revenue increased 35% year on year to €329.4 million, driven by the waste and wind divisions.  Group cash resources increased to €112.4 million and total assets, which include investment in wind farm, waste processing and other tangible fixed assets, stand at €996.1 million.

In the period under review, several of the Group’s businesses made significant progress.  The US-based wind, recycling and ethanol businesses performed well throughout the year, growing revenues and expanding their footprint. In contrast, the Irish waste business continues to be challenged by difficult trading conditions in an uncertain regulatory environment. 

NTR has decided to fully write down its solar investment, significantly contributing to Group attributable losses of €280.2 million.  This follows the decision earlier in the year to limit funding to its solar business, Stirling Energy Systems (SES), as it has not yet succeeded in attracting third-party investment.  SES continues to seek third-party investors.

The Group’s focus during the year was on taking decisive action to address the challenges facing its businesses, while driving operating performance in the portfolio overall.  The financial results reflect management decisions to consolidate the portfolio and create a solid platform for future growth, reducing cash spend and redirecting capital into value-adding opportunities.  While addressing short-term challenges, the Group’s leadership continues to have an ambitious agenda for the company longer term and remains focused on delivering value from the current portfolio. 

A number of important milestones were reached during the year, including:

- Wind Capital Group’s 150 megawatt (MW) Lost Creek wind farm came on stream on time and within budget and has performed very strongly. Wind Capital Group was also successful in securing new power purchase agreements and expects to begin construction by the end of the year on two new wind farms that will bring a further 350 MW into operation by December 2012

- Greenstar Recycling (North America) continued its growth momentum, doubling its EBITDA during the year due to targeted investment and a focus on cost control.  The company opened two single-stream facilities and a recycling centre in key cities. It invested in updating technologies, making Greenstar Recycling’s core facilities amongst the largest and most automated in the US

- Greenstar (Ireland) faced a challenging operating environment with available waste volumes significantly reduced, margins eroded and reduced landfill prices.  In response, Greenstar’s management team undertook a significant cost reduction programme, commenced a series of margin-enhancing activities across its business lines, increased productivity and engaged with the relevant Government agencies to highlight the issue of below-cost selling.  The business also realised synergies from its Veolia acquisition through increased revenue and market share

- NTR established a strategic relationship with BlackRock, Inc. to launch a new renewable power investment platform, which NTR anticipates will deliver value in the medium to long-term

- In its full-year results for the year ended 31 December 2010, Green Plains Renewable Energy Inc. (NASDAQ: GPRE) reported record revenues of US$2.1 billion, a 64% increase from US$1.3 billion in 2009, and a 143% increase in net profit. Green Plains increased its ethanol production by 31% through targeted acquisitions and upgrading existing plants

- BioProcessAlgae, a joint venture between NTR, Green Plains, Clarcor and BioProcessH2O to commercialise algae production technology, opened Phase II of its grower harvester bioreactors at the Green Plains ethanol plant in Shenandoah, Iowa

- Celtic Anglian Water commenced its operations contract at the new Waterford City waste water treatment plant and completed upgrading and plant optimisation at the Ringsend, Dublin waste water treatment works. The business has been consistently profitable and is well positioned for growth in the water sector

- National Toll Roads completed the sale of a number of toll businesses for a total consideration of €50 million

- NTR completed a thorough review of the operations and cost base of its portfolio of businesses.  It also reduced costs at head office.

Commenting on the year, Michael McNicholas, Chief Executive of NTR plc, said: “This was a challenging year for NTR. We have taken a hard look at all of our businesses and made the necessary decisions to strengthen the Group.  We have reined in development spend and costs across the Group and are driving increased value from the core businesses.  The sectors we invest in have significant potential for future growth and I believe we are well positioned to capitalise on this.”

Financial Overview

- Group Revenue from continuing operations was up 35% year on year to €329.4 million (up from €244.7 million in 2010), mainly due to an increase in the waste division of €68.6 million and an increase in the wind division of €19.6 million

- Cash of €112.4 million (up from €64.7 million in 2010)

- Total assets at 31 March 2011 amounted to €996.1 million, including investments in wind farm, waste processing and other tangible fixed assets of €435.2 million, €109.1 million in respect of Green Plains and €112.4 million cash

- Group EBITDA from continuing operations before impairments and fair value adjustments was €18.7 million, up from €4.9 million in the prior year

- Impairment and fair value charges of €195.7 million, of which €132.7 million is attributable to shareholders:


Solar Write-downs €42.4 Million
Waste Management €62.2 Million
Other €28.1 Million
Total €132.7 Million


- Losses for the year (inclusive of impairments) were €381.0 million, of which €280.2 million were attributable to shareholders:


Continuing Operations €42.4 Million
Discontinued Operations €140.4 Million
Total Attributable to NTR shareholders €280.2 Million


- The Board is not recommending a dividend and will continue to keep the policy under review.




About NTR plc

NTR plc is a leading investor in renewable energy and sustainable waste management businesses. Founded in 1978, NTR has evolved from being a developer and operator of infrastructure in Ireland to an international developer and operator of renewable energy and sustainable waste management businesses in the USA and Ireland. www.ntrplc.com   

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