Bord na Móna - Source Issue 10 - (Page 17)

TAkInG The lonG vIew necessitated a significant non-cash write-down which has impacted on the net profitability of the group for the year. the Board is pleased to report continuing implementation of the group’s strategy. the group has shown and will continue to demonstrate that we can meet the challenges we face and change to maintain a sustainable business into the future. Bord na móna is increasingly playing its part in ireland’s sustainable future with environmentally friendly policies in energy, water, resource recovery and enhancement of biodiversity. ‘we are confident that the group’s proven diversification strategy, combined with our recognised strengths, will ensure a successful and vibrant future for the group and enhance the interests of all our stakeholders’, said fergus mcardle, chairman of the Board, who continued: ‘current economic conditions, reflected in a collapse in consumer confidence, have resulted in a global downturn that has left no single region and very few business sectors untouched. in 2011/12 trading conditions continued to be challenging due to rising pressure on consumers’ disposable income, and higher commodity prices. the unseasonably mild winter had an adverse impact on our retail business and the increased consumer Group perFormAnCe IndICATors FInAnCIAl summAry 2011/2012 € ‘000 turnover earnings before interest, tax, depreciation and amortisation (eBitda) operating (loss)/profit (loss)/profit before tax (loss)/profit after tax net debt 383,826 61,146 (2,886) (12,742) (16,261) 66,714 2010/2011 €’000 382,069 72,749 24,458 16,727 12,920 64,653 Turnover feedstock powergen resource recovery environmental & other retail 2011/2012 €mIllIon 62.9 71.3 65.5 12.5 171.6 383.8 2010/2011 €mIllIon 69.5 60.5 56.2 13.6 182.3 382.1 B ord na móna’s annual report for 2011/12 was published at the group’s agm held on July 23rd. the financial results showed turnover at €383.8 million for the year, an increase of €1.7 million on 2010/2011. eBitda (earnings before interest, tax, depreciation and amortisation), which is the main indicator of operating profitability, remained strong although down somewhat on the previous year. this was due largely to the prolonged outage at the west offaly power plant and the difficult trading conditions encountered by our fuels products impacted by the mildest winter season for many years, a substantial increase in untraded fuels and low cost imports and the effect of the economic downturn on disposable incomes. Sales activity was mixed for the group as powergen, horticulture (now part of retail) and resource recovery delivered increased sales growth and feedstock and fuels (now part of retail) had reduced sales activity. although resource recovery increased its turnover through growth in the domestic business, it continues to experience the effects of the general downturn in economic activity, particularly in the construction and retail sectors. a financial review of the underlying value of that business has demand for value put pressure on margins. the interdependence of waste generation and the macroeconomic environment is clear and continues to impact on the profitability of the resource recovery business which operates in a market that is highly fragmented’. gabriel d’arcy ceo added: “while the economic outlook remains challenging i am confident in the long term growth prospects for the business. we will continue to focus on delivering our vision, ensuring that as we grow we meet our customers’ expectations, invest in innovation and improve our competitiveness. we will also continue to invest in our management and leadership capability, and drive an organisational culture built on our core values of being resourceful, engaging and respectful’. Source | 17

Table of Contents for the Digital Edition of Bord na Móna - Source Issue 10

Bord na Móna - Source Issue 10
A round-up of news from around the company
Community Values
Looking Ahead with Confidence
From Waste to Compost
Saving Energy
Building Commitment
At the Coal Face
Annual Report Results
A Dog's Life
Updates on important developments and projects
Heritage Corner
A nationwide spotlight on special occasions, events and achievements across the company

Bord na Móna - Source Issue 10