INVESTMENT FIRM One51 is making tentative plans to float its environmental services unit when market sentiment picks up.

While an initial public offering is unlikely this year, One51 told shareholders at its agm yesterday that a “potential listing” of divisions was a source of cash that could be cycled back to them.

The environmental unit – which has hazardous waste and metal and materials recycling businesses in Ireland, Britain and mainland Europe – is seen as the prime candidate for any listing.

Following a series of acquisitions since 2006, the current focus of the environmental unit is on the integration of its operations and achievement of efficiencies. The unit, led by divisional managing director Paul Dixon, may pursue additional deals but not immediately.

Although One51 has more than €200 million in undrawn credit available to fund any acquisitions, it is unlikely to pursue specific opportunities until next year because vendor price expectations remain “too high”.

One51 believes the fallout from the credit crunch and the recession will present it with potential deals, but chief executive Philip Lynch said target companies had yet to adjust their expectations to radical change in market conditions and the curtailments in the availability of debt.

“The value isn’t there yet,” Mr Lynch told reporters after the company’s agm in Dublin. “People will have to expect they might get half of what they would have got.”

He declined to say whether One51 might seek to acquire the 29.9 per cent stake in ferry operator Irish Continental Group (ICG) that is held by developer Liam Carroll, who is seeking to put a number of insolvent companies into examinership.

One51 shares a 24.9 per cent stake in ICG with Doyle Shipping. While declining to comment on the stalemate in the long-running takeover battle for ICG, Mr Lynch said his company was happy with this investment.

Earnings before interest, tax, depreciation and amortisation (Ebitda) in the six months to June declined to €24.4 million from €30 million. A drop in revenues to €160.3 million from €230 million was attributed to economic conditions generally.

“One51 has performed satisfactorily in the first half of 2009. The outlook for the second half remains challenging but we are confident that we will at a minimum achieve the guidance that we gave in May,” Mr Lynch said in prepared remarks to the agm.

The company said in May that it expected full-year Ebitda this year before mark-to-market adjustments to decline 15-20 per cent from €52.2 million in 2008.

Mr Lynch told the agm that One51 took “corrective action” to adjust the cost base of the environmental unit last September when commodity prices started to fall. This helped to preserve the profits.

One51 has cut 150 jobs since October last year, leaving the business with 1,100 staff.

Apart from environmental services, One51 owns Irish Pride bakeries. It also owns 50 per cent of Greenore Port in partnership with Dublin Port Company and has a 24.8 per cent stake in NTR, the utility company.