Investment firm One51 wrote down the value of its metal and electronic recycling operation by €27m last year. It has also abandoned plans to expand its waste electrical and electronic equipment business following market volatility.

The revaluation is revealed in the company's annual report discussed at its AGM last week and comes despite a robust performance by One51's Environmental Services Division. Operating profit in the division increased by 23% to €26.5m last year but Environmental Services managing director Hans Droog said tight margins required revaluation.

"Environmental Services is a margin business... We believe this impairment is an appropriate response to the recent sharp falls in global commodity prices and reflects the cyclical nature of raw materials demand," he said.

One51's revenues dropped almost €70m to €160.3m in the six months to June but CEO Philip Lynch told shareholders the company is in a strong position. One51 has access to a war chest worth more than €200m in undrawn committed bank facilities which it intends to use to acquire businesses in the green sector here and overseas, say sources.