New Era, the State agency tasked with reconstructing the commercial semi-State sector, will issue a report to government before “year end” on the proposed merger of Bord na Móna and Coillte.
Gabriel D’Arcy, the chief executive of Bord Na Móna, said the company had been asked by New Era to contribute to the report, whichhe said should be ready “by the back end of the year”.
He said he had “not yet formed a view” as to whether a merger was a good idea, but that there is “merit” in the state exploring the idea. “We will co-operate fully,” he said.
Bord na Móna yesterday reported a 11 per cent increase in turnover to a record €426.1 million for the financial year ended March 2013.
Figures published by the company show a return to profit and an increase in cash flow for the group, which said the results highlight the importance of a balanced business portfolio that includes power generation, resource recovery and retail products.
Operating profits after exceptional items increased to €23.5 million, up from a loss of €3.7 million in 2012, while operating cash flow increased from €42.3 million to €108.5 million during the year.
Overall profits
Overall profits, after exceptional items, for the group were €9.2 million compared to a loss of €16 million in 2012.
The company said the increase in turnover was reflective of the prolonged cold winter weather and the positive impact this had on fuel sales.
Earnings before interest, tax, depreciation and amortisation for the period were €61.2 million.
D’Arcy said the results owe a great deal to the diverse strengths of the company and the implementation of cost-reduction measures.
The group’s chairman, John Horgan, said Bord na Móna would be advancing some big projects in the coming year as part of an investment programme in wind and renewable energy sources.
“We will also continue to engage with other stakeholders in relation to the provision of a sustainable water source for the eastern region.
“These significant infrastructural projects, combined with our drive for effective operations across the group, are part of our ongoing sustainable business strategy.”
During the year the group expanded its wind energy portfolio at Oweninny, Co Mayo, as well as at Mount Lucas and Bruckana in the midlands.
During the accounting period exceptional items which affected the company’s profitability included a €23 million impairment charge in relation to the the group’s waste management business.
Exceptional costs of €23.5 million were also incurred as a result of the poor harvest in 2012, which was the lowest in the company’s history, representing just 37 per cent of the harvest target.
