Managers at the State-owned peat company Bord na Mona, who believe that it could be floated on the stock exchange, have held informal discussions with the Department of Public Enterprise on options for its future ownership.
The company's director of finance and corporate development, Mr John Hourican, said the "ideal" would be to place it in public ownership, though he added that there was a question of scale and timing.
Bord na Mona is a relatively small company. Its net asset value in March this year was €98.57 million (£77.63 million). On a sample price-earnings ratio of seven, the company's retained profits in 1999-2000 would be worth roughly the same, €98.68 million.
The company's management was also keen to seek an equity partner, its outgoing managing director, Mr Paddy Hughes, indicated. "Management see very clearly that it must get into a partnership."
Yet the company's retiring chairman, Mr Pat Dineen, said it would not take an equity partner in advance of an ownership change, as this might "queer the pitch".
"The shareholder has not made any approaches to the company with regard to a change of ownership," Mr Hughes said. But he added that Bord na Mona had to be prepared for whatever strategy the Government would pursue. The final decision would be for the Government to take.
"It is the management's job to have the company ready. But quite clearly the shareholder has indicated that it sees its role in regulation," said Mr Hughes at a briefing yesterday. Mr Dineen said the question of ownership would arise in "the next couple of years".
The company's pre-tax profit for the year ended March 29th was €14.86 million, almost 36 per cent higher than in the previous 12 months. Revenues were worth €195.77 million, marginally stronger than in the previous period when sales were worth €194.4 million.
Preliminary interviews had been conducted to fill the vacant position of managing director, Mr Dineen said, and a shortlist would be compiled in due course.
The report revealed that the sale of the Shamrock brand to the US company Scotts would yield just more than €11 million in the 1998-2000 period, although restructuring and the costs of sale amounted to €3.9 million.
