Costs eat into Forth’s profits

Costs relating to its takeover by a private equity group took a large chunk out of profits at Forth Ports last year, but the Edinburgh-headquartered firm’s underlying figures were positive.

Forth, which operates seven ports on the Forth and Tay estuaries as well as one on the river Thames, was acquired by Arcus European Infrastructure Fund last year for £746 million.

Yesterday it said that revenues at the business grew 1 per cent to £183.5m in 2011, against “a challenging economic backdrop”.

Operating profits were 6 per cent higher at £52.7m, but exceptionals relating to the takeover and subsequent debt restructuring cut the business’ pre-tax earnings to £15.6m, compared to £56.3m in 2010.

Chief executive Charles Hammond said 2011 had been “a landmark year” for Forth, which had restructured and refocused with the support of its new owner.