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6. Taxation

	2013	2012
	€’000	€’000
Taxation based on the profit/(loss) for the year:
Irish corporation tax
Current tax for the year	2,818	2,733
Adjustments in respect of prior years	14	113
	2,832	2,846
Foreign taxation
Current tax for the year	12	9
Adjustments in respect of prior years	0	0
	12	9
Total current tax (see note below)	2,844	2,855
Deferred tax - origination and reversal of timing differences (Note 17)	465	664
Tax on profits on ordinary activities	3,309	3,519
Factors affecting corporation tax charge for the year
Profit/(loss) before taxation	12,532	(12,742)
Standard rate of corporation tax for the year	12.50%	12.50%
Profit/(loss) before taxation multiplied by standard rate	1,567	(1,593)
Effects of:
Expenses not deductible for tax purposes	254	722
Depreciation and amortisation in excess of capital allowances	16	168
Ineligible depreciation	984	623
Impairment of tangible assets and investment property	114	860
Amortisation of intangible assets	312	411
Impairment of intangible assets	0	2,107
Utilisation of tax losses	0	(60)
Taxation rate differences	5	29
Pension contribution relief in excess of pension cost charge	(422)	(525)
Adjustments in respect of prior years	14	113
	2,844	2,855

7. Intangible assets

	Goodwill	Other intangibles	Total	Goodwill	Patents	Total
	2013	2013	2013	2012	2012	2012
THE GROUP	€’000	€’000	€’000	€’000	€’000	€’000
Cost
At beginning of the financial year	66,878	503	67,381	64,188	503	64,691
Reclassification (Note 8)	0	7,355	7,355	0	0	0
Additions	0	1,269	1,269	0	0	0
Arising on acquisition (Note 21)	0	0	0	2,675	0	2,675
Exchange adjustment	11	0	11	15	0	15
At end of the financial year	66,889	9,127	76,016	66,878	503	67,381
Amortisation and Impairments
At beginning of the financial year	50,476	503	50,979	30,326	503	30,829
Reclassification (Note 8)	0	3,187	3,187	0	0	0
Charge for year	2,098	403	2,501	3,291	0	3,291
Impairment	0	0	0	16,857	0	16,857
Exchange adjustment	11	0	11	2	0	2
At end of the financial year	52,585	4,093	56,678	50,476	503	50,979
Net Book Amounts
At beginning of the financial year	16,402	0	16,402	33,862	0	33,862
At end of the financial year	14,304	5,034	19,338	16,402	0	16,402

At the beginning of the year the Group reclassified its capitalised grid connection costs from tangible assets to intangible assets. The gross value of capitalised grid connection costs was €7,355,000 and the accumulated amortisation at the date of transfer was €3,187,000 (Note 8).

Other intangibles include €1,269,000 in respect of grid connection costs that are in the course of construction.

The carrying value of goodwill of €14,304,000 (2012: €16,402,000) is represented by goodwill in the Powergen business of €6,357,000 (2012: €6,962,000), goodwill in the Resource Recovery business of €7,705,000 (2012: €9,154,000) and goodwill in the Anua-Environmental business of €242,000 (2012: €286,000).

In accordance with the provisions of FRS 11 - ‘Impairment of Fixed Assets’, the Group has reviewed the carrying value of goodwill. The recoverable amounts of each of the identified income generating units (IGU) were estimated based on a value in use calculation using cash flow projections based on the financial five year plans as approved by the Board. Cash flows beyond five years are extrapolated based on a perpetuity growth rate of 2.3% (2012: 2.3%) and a pre tax weighted average cost of capital of 9.0% (2012: 9.7%) which are consistent with the Group’s expectation for market development and growth in market share where applicable. Based on these reviews there was no impairment of the carrying value of goodwill (2012: impairment charge of €16,857,000 on goodwill in the Resource Recovery sector).

The estimated value in use of the Resource Recovery generation unit is dependent on two key assumptions, the discount rate and the growth rate assumed in future EBITDA for which there could be a reasonably possible change that could result in the carrying amount exceeding the recoverable amount. The following table shows the amount by which these two assumptions would need to change individually in order for the estimated value in use of the Resource Recovery generation unit to be equal to the carrying amount.

Movement required in key assumptions for carrying amount to equal value in use:

	2013
Discount rate	2%
EBITDA growth	(7%)

8. Tangible assets

	Bogland, drainage & production buildings	Landfill	Railways, plant & machinery	Generating assets	Freehold land, administration & research buildings	Assets in course of construction	Total
THE GROUP	€’000	€’000	€’000	€’000	€’000	€’000	€’000
Cost
At 28 March 2012	123,600	27,407	236,415	162,523	18,005	11,561	579,511
Reclassification (Note 7)1	0	0	0	(6,925)	(430)	0	(7,355)
Additions at cost2	2,094	937	6,516	367	46	29,415	39,375
Disposals/retirements3	(223)	0	(7,998)	0	0	0	(8,221)
Transfers out of assets under construction	2,800	2,019	4,659	0	0	(9,478)	0
Exchange adjustment	0	0	24	0	(13)	0	11
At 27 March 2013	128,271	30,363	239,616	155,965	17,608	31,498	603,321
Accumulated Depreciation
At 28 March 2012	86,428	15,671	175,396	47,200	9,881	0	334,576
Reclassification (Note 7)1	0	0	0	(3,187)	0	0	(3,187)
Charge for year	4,276	3,388	17,333	10,080	609	0	35,686
Disposals/retirements3	(207)	0	(7,898)	0	0	0	(8,105)
Exchange adjustment	0	0	20	0	(2)	0	18
At 27 March 2013	90,497	19,059	184,851	54,093	10,488	0	358,988
Net Book Value
At 28 March 2012	37,172	11,736	61,019	115,323	8,124	11,561	244,935
At 27 March 2013	37,774	11,304	54,765	101,872	7,120	31,498	244,333

¹ At the beginning of the year the year the Group reclassified its capitalised grid connection costs from tangible assets to intangible assets. The gross value of capitalised grid connection costs was €7,355,000 and the accumulated amortisation at the date of transfer was €3,187,000 (Note 7).

² Additions includes:

(i) a sum of €1,016,000 in respect of decommissioning and restoration assets (2012: €3,712,000) (Note 17).

(ii) the Group capitalised borrowing costs of €458,000 (2012: €132,000) in respect of assets in the course of construction during the year (Note 5). The rate of interest applied was 7.3% (2012: 7.3%).

³ Retirements/disposals during the year primarily relate to fully depreciated assets.

In accordance with the provisions of FRS 15 - ‘Tangible Fixed Assets’ the Group conducted impairment reviews of the Group’s tangible assets. This process has resulted in an impairment charge of €Nil (2012: €6,876,000 in the Resource Recovery and Anua-Environmental businesses).

	Bogland, drainage & production buildings	Railways, plant & machinery	Freehold land, administration & research buildings	Total
THE COMPANY	€’000	€’000	€’000	€’000
Cost
At 28 March 2012	559	10,509	6,175	17,243
Additions at cost	0	513	12	525
At 27 March 2013	559	11,022	6,187	17,768
Accumulated Depreciation
At 28 March 2012	0	9,175	3,473	12,648
Charge for year	0	1,048	260	1,308
At 27 March 2013	0	10,223	3,733	13,956
Net Book Value
At 28 March 2012	559	1,334	2,702	4,595
At 27 March 2013	559	799	2,454	3,812

9. Investment properties

	2013	2012
	€’000	€’000
At beginning of the financial year	8,660	11,900
Impairment during the year charged to the statement of total recognised gains and losses	0	(2,463)
Impairment during the year charged to the profit and loss account	(910)	(777)
At end of the financial year	7,750	8,660

The investment property is stated at market value as at 27 March 2013. Market value means ‘the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherin the parties had each acted knowledgeably, prudently and without compulsion’.

The valuation of the Group’s freehold interest in the property was carried out by DTZ Sherry Fitzgerald, qualified professional valuers acting in the capacity as external valuer. The valuation was carried out in accordance with the Royal Institution of Chartered Surveyors’ Valuation Standards Global, 8th Edition (the ‘Red Book’). The valuation was carried out as at 27 March 2013 and resulted in an impairment charge of €910,000 (2012: €3,240,000).

The market value of the investment property has been primarily derived using comparable market transactions on arm’s length terms and an assessment of market sentiment. The valuation reflects, where appropriate, the type of tenant actually in occupation or likely to be in occupation after letting of vacant accommodation and the market’s perception of their creditworthiness and the remaining useful life of the property.

10. Financial assets

	2013	2012
THE GROUP	€’000	€’000
Joint Venture
At beginning of the financial year	1,193	0
Investment during the year	500	1,525
Group share of loss	(717)	(332)
At end of the financial year	976	1,193
Share of gross assets	2,025	1,525
Share of gross liabilities	(1,049)	(332)
Share of net assets	976	1,193

	2013	2012
The following transactions were carried out with the joint venture:	€’000	€’000
(a) Purchase of services	185	253
(b) Provision of finance	535	1,525
(c) Amounts receivable from joint venture	111	246
(d) Amounts payable to joint venture	0	1,525

Oweninny Power Limited was incorporated in September 2011 as a joint venture between Bord na Móna Energy Limited and ESB Wind Development Limited to develop a 172MW wind farm in Oweninny, Co. Mayo. The joint venture is developing the wind farm project and has not yet commenced trading.

At the balance sheet date the Group had a commitment to provide additional funding of €1,700,000 to fund the development of the Oweninny wind farm.

	Subsidiary undertakings
	Unlisted shares	Convertible loan stock	Loans	Total
THE COMPANY	€’000	€’000	€’000	€’000
At beginning of the financial year	6,853	782	87,766	95,401
Repayment during the year	0	(302)	0	(302)
Impairment during the year	(6,853)	0	0	(6,853)
At end of the financial year	0	480	87,766	88,246

The Company has reviewed the carrying value of investments in subsidiary companies as at 27 March 2013 which resulted in an impairment of the value of unlisted shares of €6,853,000 (2012: €18,547,000). The Company also reviewed the carrying value of the loans of €87,766,000 and there was no impairment on the loans.

The convertible loan stock was issued by the Company’s 55% owned subsidiary, Derryarkin Sand and Gravel Limited, with the balance of the stock held by the minority shareholders (Note 19). It is convertible at par value into ordinary shares by agreement between the stockholders and Derryarkin Sand and Gravel Limited. All convertible stock not previously redeemed or converted will be redeemable at par upon the expiration of ten years from the date of issue which is March 2013. Derryarkin Sand and Gravel Limited repaid €302,000 of loan stock to the Company during the year (2012: Nil). The Company has reviewed the carrying value of investments in convertible loan stock at the balance sheet date and impaired the investment by €Nil (2012: €730,000).

The principal subsidiary and joint venture companies in the Group at 27 March 2013 are as follows:

Subsidiary company	Business	Registered office	Shareholding
Bord na Móna Energy Limited1	Production and sale of milled peat	Newbridge, Co Kildare	100
Bord na Móna Allen Peat Limited	Production and sale of milled peat	Newbridge, Co Kildare	100
Edenderry Power Limited	Power Generation	Newbridge, Co Kildare	100
Edenderry Power Operations Limited	Maintenance of power plants	Newbridge, Co Kildare	100
Cushaling Power Limited	Power Generation	Newbridge, Co Kildare	100
Renewable Energy Ireland Limited	Power Generation	Newbridge, Co Kildare	89
Mount Lucas Wind Farm Limited	Power Generation	Newbridge, Co Kildare	100
Bruckana Wind Farm Limited	Power Generation	Newbridge, Co Kildare	100
Bord na Móna Fuels Limited1	Production, sale and distribution of solid fuels	Newbridge, Co Kildare	100
BnM Fuels Limited	Production, sale and distribution of solid fuels	Newbridge, Co Kildare	100
Suttons Oil Limited	Distribution of oil	Newbridge, Co Kildare	100
Suttons Limited	Distribution of oil	Newbridge, Co Kildare	100
Bord na Móna Horticulture Limited1	Production and sale of horticultural products	Newbridge, Co Kildare	100
Bord na Móna Environmental Limited1	Production, sale and installation of environmental products.	Newbridge, Co Kildare	100
Bord na Móna Environmental Products (UK) Limited	Sale and installation of environmental products	Bridgewater, Somerset, England	100
Bord na Móna Environmental Products US Inc.	Sale and installation of environmental products	Delaware, U.S.A.	100
Advanced Environmental Solutions (Ireland) Limited1	Resource recovery and recycling company	Newbridge, Co Kildare	100
Bord na Móna Property Limited1	Property holding company	Newbridge, Co Kildare	100
Derryarkin Sand and Gravel Limited1	Extraction and sale of sand and gravel	Newbridge, Co Kildare	55
Joint venture company
Oweninny Power Limited	Power generation	St. Stephen’s Green, Dublin 2	50

Pursuant to the provisions of Section 17, Companies (Amendment) Act, 1986, the Company has guaranteed the liabilities of its Irish subsidiaries with the exception of Suttons Oil Limited. As a result, these companies will be exempted from the filing provisions of Section 7, Companies (Amendment) Act, 1986.

¹Shareholding held directly by Bord na Móna plc.