A huge bail-out by the Exchequer helped Bord na Móna achieve profitability in recent years, write Peadar Browne and Arthur Beesley
Long burdened by debt, Bord na Móna has turned profits since the Government paid off its loans between 1996 and 1998 at a cost of €137 million. It was a huge sum but one that enabled the company to clear what was regarded as an unsustainable burden on its finances.
The company is believed to have made operating profits last year of €26 million on revenues of €225 million, up from €213 million in 2000. Its post-tax profit last year is believed to be in the region of €16 million, after allowing for a once-off payment of deferred tax.
With net assets of €130 million, the company is preparing to release 5 per cent of its stock to its 1,800 full-time and 600 part-time staff. Such stock, worth about €3,500 per person, is likely to be transferred as payment for work practice changes already granted.
Assuming it goes ahead, such a development will be the first step in a move to private ownership sought by the management. Discussions on this matter have been under way for more than a year.
More sensitive will be any Government decision to sanction a change in ownership. The Government is sole shareholder of Bord na Móna.
The strategic plan is thought to propose a reduction of 150 from the administrative staff of 500. The plan is also thought to identify potential savings of about €2 million in the pay-stream and information technology areas in particular.
Less certain is the future of the company's 80,000 hectares of land. It is believed to regard all but 10,000 hectares as non-strategic.