Coillte reports profit of €35m
The group said it performed well in most areas with a solid performance in its forestry business, improved performance at subsidiary manufacturer SmartPly Europe and good results in its land-based operations.
Brendan McKenna, chairman, said all of the profits generated were reinvested in the business. Capital expenditure amounted to €52.3m, funded from the group’s own resources and grants. Over 80% of this figure was spent on reforestation of sites previously harvested, forest road building, afforestation of new sites, and estate improvement.
In the group’s forestry business, Coillte Forests, the volume of logs sold remained constant at 2.66 million although the contribution fell by 5% due to changes in the sales mix.
Sawlog sales were down 5% while sales of pulpwood increased by an equivalent amount. The contribution from sawlog is considerably higher than from pulpwood. Log prices remained under pressure and were marginally below those achieved in 2003. The increased sales of pulpwood were due primarily to increased pulpwood usage by the company’s subsidiary SmartPly Europe.
Performance improved significantly at SmartPly. Since 2002, when Coillte acquired 100% ownership, a successful turnaround programme has been completed. SmartPly has performed well under Coillte management and is competing strongly in its target markets in Ireland, Britain, continental Europe and the US. Expansion of manufacturing capacity is being considered.
Significant progress was made in the group’s land-based businesses including the sale of wind farm sites, sale of non-strategic property and leasing of radio mast sites.
Planning permission was received for two windfarm sites bringing to nine the number of planning-permitted sites on Coillte land.
These sites, which are the subject of co-development agreements with established wind energy companies, have a total capacity of 300 megawatts.
