Viridian Group announce half-year turnover up 12%

Viridian Group plc have announced that turnover has increased from £332m to £371m, up 12% on the corresponding period last year.

The Group's operating profit increased 7% to £50.8m, up from £47.6m, and the contribution to operating profit from Viridian Power & Energy increased by £0.5m to £8.7m in the six-months to September 30, 2003.

The 12% increase in Group turnover was principally due to increased turnover from Viridian Power & Energy division where turnover increased from £66.1m in 2002 to £98.8m - a 49% increase.

Viridian Group also revealed further capital expenditure on the Northern Ireland Electricity network of £32.7m.

Commenting on the Viridian Group Chief Executive Patrick Haren said: “The Group has delivered a strong operating performance in the first half with increased profits from Viridian Power & Energy more than offsetting a small decline in contribution from Northern Ireland Electricity’s (“NIE”) regulated businesses. NIE’s Transmission & Distribution business is meeting the challenge of its cost reduction targets under the new price control while absorbing renewed pension charges and NIE’s other businesses continue to make important contributions.

“Within Viridian Power & Energy, our Huntstown CCGT, which was commissioned last November, has maintained high levels of availability. Energia, our competitive market supply business, is well placed to take advantage of the further market opening due to take place in both Northern Ireland and the Republic of Ireland (“RoI”) in 2004.

“Outside the energy sector, Sx3 increased its profits, reflecting in particular strong sales of its iWorld software product.

“We are continuing to follow our strategy: to maximise the efficiency of our core regulated assets; to grow a profitable energy business in competitive markets across Ireland; and to maximise the potential of our unregulated businesses outside the energy sector.”

The Group's £50.8m operating profit reflected increased profits from Viridian Power & Energy and Sx3, but was offset by lower profits from NIE and the loss of profits from the Moyle Interconnector, which was sold in April 2003.

The disposals of loss making Nevada and Lislyn, and the sale of the Moyle Interconnector reduced net debt, as of 30 September 2003, by £131.7m to £390.4m from £522.1m at 31 March 2003, primarily due to the proceeds from the Moyle transaction.

(SP)