Profits at Viridian, the Belfast power generation to IT services company, fell by more than £3 million sterling (#4.85 million) last year while group debt more than doubled to £368.6 million, latest results have revealed.

Viridian, the parent company of Northern Ireland Electricity, blamed a rise in interest charges on group debt, which increased during the 12 months under review by more than £217 million, for the fall in after-tax profits.

The group's annual results show a 13 per cent increase in turnover to £641.1 million. Although operating profit increased to £107.5 million, final profits fell to £73.6 million from £77.3 million last year, a drop of almost 5 per cent.

The Viridian Group, which employs more than 3,000 people, includes the core business, Northern Ireland Electricity, Sx3, the business process outsourcing and IT service company, and Open+Direct, the financial services division.

The group is currently facing a major price control review that will affect its core business in relation to the transmission and distribution prices of electricity in the North.

Viridian expects initial views from the Office for the Regulation of Electricity and Gas, which is responsible for carrying out the review in Northern Ireland, by June. The group's other divisions comprise Energia, Huntstown Power, NIE Powerteam and its joint venture Nevada tele.com, a telecoms and Internet business. It also holds a 30 per cent stake in Lislyn, an electrical retailing business that operates in Northern Ireland and the South, in which Viridian suffered losses of £600,000 on its shareholding last year.

The group, which is listed in London and Dublin, has been furthering its plans to increase its presence in the Republic, both on an electricity front and through its non-regulated businesses. Increased capital investment of £279.4 million last year reflects Viridian's ambitions in the Republic. It is currently developing Huntstown, a new £200 million gas-driven power station, that is likely to be the first independent power generation plant commissioned in the Republic after the opening of the electricity market.

Viridian also invested £92.4 million in electricity infrastructure in the North and a further £76.8 million in acquisitions by Sx3 and Open+Direct.

Mr Patrick Haren, the chief executive of Viridian, said the group was now "well positioned" to take advantage of the opportunities provided by energy market liberalisation in Ireland and by its unregulated businesses.

Nevada tele.com had completed the integration of networks in Northern Ireland and the Republic. It had also acquired Stentor, a Dublin-based telecommunications group, for £38 million and, most recently, won its first all-Ireland customer.

Industry analysts have described Viridian's annual results as positive and have highlighted the strong performance of its non-regulated businesses.

Mr Jack Gorman, an analyst with Davy Stockbrokers, said the results showed the electricity side of the business continued to deliver a strong performance while the newer unregulated businesses showed good potential.