Bord na Móna net profits climbed 12.6 per cent to €18.4 million in the last financial year, according to results issued yesterday.
The results are among the best ever for the group but profitability levels remain unsatisfactory, according to managing director Mr John Hourican.
Hard work was needed if growth targets set for the next five years were to be achieved, he said.
He added: "We remain fully committed to the actions required to deliver our strategic intent including major organisational change. This will be achieved in continuing partnership with our shareholders and employees."
Turnover at the State-owned company rose 8.2 per cent to €246.2 million and cash flow from operations increased marginally, to €41.5 million from €40.9 million, in the 12 months to March 26th. Shareholders funds were up 14.4 per cent to €145 million and borrowings fell to €8 million from €30.8 million, pushing gearing down to 6 per cent.
However, margins slid with operating profit as a percentage of turnover declining 9.5 per cent.
Sales of fuels were up 11 per cent to €106.7 million. Revenues from horticulture products increased 9 per cent to €45.3 million with exports accounting for 90 per cent. Sales of bark-based products rose 16 per cent.
Third-party sales of milled peat climbed 2.3 per cent to €65.7 million. Production of milled peat was 70 per cent of target at 2.5 million tonnes. Sales by volume were 3.5 million tonnes with 52 per cent going to the ESB for power generation, 28 per cent to Edenderry Power and the balance split between Bord na Móna Fuels for the manufacture of peat briquettes and Bord Na Móna Horticulture.
Planning proposals for a controversial residual landfill on Bord na Móna property at Drehid, Timahoe, Co Kildare, will be submitted shortly, the company said. The planning process for a 300 megawatt windfarm in Co Mayo continues.
Bord na Móna spent €15 million on upgrading its infrastructure and €4.4 million on research and development.
Mr Hourican was paid €281,000 including benefits-in-kind, a rise of €19,000 on the previous year. Seventeen non-executive directors received €248,000 in total, compared to €272,000 for 2001-02.
