Bord na Móna ‘confident about its future’ as group revenue up 25%

Bord na Móna has reported a better-than-expected performance for the first quarter of its current financial year, with group revenue up by 25% on a year-on-year basis and ahead of budgetary targets.

The state-backed utility business — whose growing focus is on the renewable energy sphere — yesterday reported a challenging set of full year figures for the 12 months to the end of March, but said the first three months of its current year — the period to the end of June — represented “a very strong start”.

The last year saw group revenue marginally increase by 0.5% to €383.8m; nearly €2m more than the previous 12 months; but profits took a hit due to impairment charges.

A €23.6m impairment charge on AES — Bord na Móna’s waste management business — single-handedly dragged the group into the red, with an operating loss of just under €2.9m and pre-tax losses of €2.95m recorded, as a direct result.

In the previous 12 months, the group recorded a profit of just under €24.5m.

However, the underlying figures for the year just completed remain strong, with a pre-tax profit of €20.7m registered before exceptionals are accounted for.

Bord na Móna’s CEO, Gabriel D’Arcy said the AES impairment — the company is not envisaging further impairments for the current year — reflected the general downturn in the waste industry.

Overall, he said the figures represented “an extremely resilient performance by a company performing well, despite an unusual combination of environmental, economic and industry-based challenges — most of which were outside our control”.

“These results add further impetus for the group to diversify and this year we can report that we have achieved real progress in this area,” Mr D’Arcy said.

Despite losing out to Bord Gáis for the management of the State water utility service, Irish Water; Bord na Móna has progressed further towards its renewable energy targets. It has begun work on two wind-farm projects, which will bring 120 extra megawatts of wind energy to the national grid over the next two years.

Investing €160m, Bord na Móna will build 40 new turbines and take on 150 staff; upping its presence in the midlands. The firm also aims to be a leading player in Ireland’s efforts to increase its renewable energy exports.

“Despite the challenges that it has had to deal with, Bord na Móna is a company that is confident about its future and optimistic about its prospects,” Mr D’Arcy said.

Employment levels grew by 29 people last year and a dividend of €4.3m was paid to the State.