Bord na Móna wants to invest up to €250 million in acquisitions over the next three to four years as part of its plan to move away from a reliance on peat.
Bord na Móna managing director Mr John Hourican said yesterday that the acquisition plans may require a change in the legislation that governs the firm, which is a semi-state body. Under current rules, Bord na Móna can borrow no more than €127 million.
Mr Hourican said growth would probably lie in a combination of borrowing and joint ventures with public or private firms.
Mr Hourican was speaking after Bord na Móna's annual general meeting in Dublin, at which it emerged that strong cashflow had allowed the firm to clear its balance sheet of debt last year.
This debt reduction of €8 million came as turnover rose by 2.7 per cent to €252.9 million and operating profits before exceptionals climbed by 26 per cent to €29.4 million.
The results included an exceptional charge of €11 million for the closure of the firm's Oweninny bog works in Co Mayo.
Bord na Móna chairman Mr Donagh O'Donoghue welcomed the "robust" performance, but warned of challenging times ahead for the company.
He said that Bord na Móna would be hit by a "hiatus" in the operation of two ESB power stations to which the company supplies peat. Two peat-fired stations have closed at Lanseboro, Co Longford, and Shannonbridge, Co Offaly, but replacement stations at Lough Ree, Co Longford, and in west Offaly have yet to begin producing electricity.
This will lead to a short-term decline in Bord na Móna's peat sales, which accounted for 54 per cent of group sales last year.
Mr Hourican said the firm would use its "solid financial base" to reinforce and supplement its traditional businesses over the next few years. It is already active in wind energy and is seeking planning permission for a landfill and composting site at Timahoe in Kildare. Interests will also be expanded in air-pollution control and waste-water treatment, with the firm progressively reducing its reliance on energy, fuel and horticulture.
"If we're successful with our ambitions, I would expect 60-70 per cent of profits to come from new businesses within three to four years," said Mr Hourican.
It also emerged yesterday that Bord na Móna has agreed with Government and staff that 5 per cent of its shares should be transferred to employees.
