Limerick tunnel firm posts net profit of 8.5 million euros as state payments drop

  • Limerick tunnel firm posts net profit of 8.5 million euros as state payments drop
    Independent.t. E.
    Guarantee of payment traffic, totaling 4.1 m government Agency transport infrastructure Ireland (TII) of a company involved in the €800 metres Limerick tunnel helped him to record an operating profit of €8.5 million last year.
    https://www.independent.ie/business/limerick-tunnel-firm-posts-85m-profit-as-state-payments-drop-37217249.html
    https://www.independent.ie/world-news/article37216903.ece/3e85e/AUTOCROP/h342/p30tunnel.jpg

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Guarantee of payment traffic, totaling 4.1 m government Agency transport infrastructure Ireland (TII) of a company involved in the €800 metres Limerick tunnel helped him to record an operating profit of €8.5 million last year.

New accounts filed by Directroute (Limerick) Ltd show that the firm registered a 9pc decline in operating profit to €9.4 million to €8.5 m – as the traffic guarantee payments reduced from €4.4 million to €4.1 m and TII operating payments decreased from €5.4 m to € 4 million.

Earlier this year, the Committee on public house of representatives the bills said that the state has paid the operator paid €34m on public-private partnership agreement (PPP) to compensate for the smaller number using it. Official TII said “conservative estimates” projected to further movement of payments around €150 million for the remaining part of the contract.

Loss of income in 2017 increased from €13.86 m €14.9 m €40,821 per day and a decrease in payments from TIA contribution to the total income of the company fell 3pc from €23.7 m to €23m.

Guarantee payment of traffic is produced when the daily volume does not exceed 23,000.

Accounts show that the firm last year recorded pre-tax losses of €7.6 m – up 19pc on a pre-tax loss of $ 6.4 m in 2016.

However, a pre-tax loss is mainly due to the large non-cash depreciation costs of €13.48 m incurred last year, a financing payment of €15.8 m.

According to the reports of the Directors is “the largest account is the payment of interest on project financing, mainly in the form of Bank loans and bonds,” and added that the guarantee of the payment traffic “will provide the necessary contribution.”

Director declare that the movement on the route “increased again in 2017, motorists continue to recognize the benefits of the tunnel from the point of view of safety and improved journey times”.

The Director stated that “revenue declined in 2017 due to the reduction in payments from TII”

At the end of December 2017, the company owed €389m lenders – from €391m debt at the end of December 2016.

At the end of December last year, the firm had a shareholders deficiency in the amount of €53.3 m.

The route of the tunnel, which acts as a bypass of Limerick city – was opened in July 2010 and motorists pay €1.90 to use it.

DirectRoute Limerick is composed of Lagan, Roadbridge, Sisk contractors, the Austrian strabag and Meridiam infrastructure. The figures show that the toll roads and tunnels had a book value of €319m in height.

In a note to the statements reads: “the Director credited the project requirements and prepared a forecast for the life of the concession. This forecast shows, based on the basic assumptions that will be enough money for the project to meet its responsibility before the third parties upon the occurrence of their maturity.”

At the end of the concession period in 2041, the firm will return the path to the TIA.

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