Topaz Energy Group, the fuel retailer and distributor recently taken over by Denis O'Brien, recorded an 8 per cent rise in revenues to more than €3.17 billion in the 12 months to the end of March last year.
The group made a small operating profit of €296,000 but the interest bill on its debt mountain pushed it into the red, with a loss after tax of more than €13 million.
The group, which operates about 330 petrol stations across the country and accounts for about a quarter of the market, is likely to return to profitability this year, however, following Mr O'Brien's purchase of about €304 million of the group's loans from Irish Bank Resolution Corporation.
Mr O’Brien, who was previously a minority shareholder in Topaz alongside Neil O’Leary’s Ion Equity group, is reported to have paid about €150 million for the loans.
According to the 2013 accounts, Topaz has accumulated losses of about €87 million, although it was sitting on cash of about €41 million.
Its aviation fuel joint venture with Shell contributed sales to Topaz of about €260 million, down by about 7 per cent on the previous year.
Redundancy costs
The group recorded exceptional costs during the period of more than €12 million, mostly relating to redundancy costs accrued through the closure of its distribution terminals in Limerick, Galway and Derry.
The group’s net debt during the year fell by almost 10 per cent to €176 million, according to the accounts.
John Williamson, the group's chief executive, said the debt deal Mr O'Brien struck with IBRC will help the company restructure, and hinted at the injection of fresh equity into the group by its new owner.
“[It] allows us to restructure our balance sheet through a fresh issue of new share capital together with a significantly reduced level of debt. This restructuring will radically transform our balance sheet and ensure the group is very well positioned to capitalise on future growth opportunities,” he said.
He said the group had witnessed a “strong return to growth” during the year.
“The company benefited from higher fuel volumes across all three of its divisions . . . growth in convenience retailing, [and] an investment in the forecourt network.”
