Annual Report 2013

Notes to the Financial Statements

16. Deferred income - capital grants

 

THE GROUP

 

2013

2012

 

’000

’000

 

 

 

At beginning of the financial year

13,493

14,884

Amortised during the year (Note 2)

(1,361)

(1,391)

At end of the financial year

12,132

13,493

 

 

Amounts due as follows:

 

- within one year (Note 13)

1,358

1,392

- after more than one year (Note 14)

10,774

12,101

 

12,132

13,493

 

 

 

17. Provisions for liabilities

THE GROUP

 

 

 

 

 

 

 

Environmental reinstatement

Reorganisation & redundancy

Insurance

Other

Deferred tax excluding deferred tax on pension deficit

Total

 

’000

’000

’000

’000

’000

’000

 

At 28 March 2012

32,772

407

7,024

1,670

7,819

49,692

Reclassification1

1,470

0

0

0

0

1,470

Charge to the profit and loss account

2,477

540

1,750

642

(46)

5,363

Credit to the profit and loss account

(616)

(52)

(717)

(165)

0

(1,550)

Financing charge (Note 5)

1,110

0

0

0

0

1,110

Capitalised during the year

1,016

0

0

0

0

1,016

Utilised during the year

(1,317)

(733)

(1,206)

(181)

0

(3,437)

At 27 March 2013

36,912

162

6,851

1,966

7,773

53,664

 

 

 

 

 

 

 

Amounts due as follows:

 

 

 

 

 

 

- within one year

5,944

162

6,851

1,966

840

15,763

- after more than one year

30,968

0

0

0

6,933

37,901

 

36,912

162

6,851

1,966

7,773

53,664

 

 

 

 

 

 

 

THE COMPANY

 

 

 

 

 

 

 

Environmental reinstatement

Reorganisation & redundancy

Insurance

Other

Deferred tax excluding deferred tax on pension deficit

Total

 

’000

’000

’000

’000

’000

’000

 

At 28 March 2012

2,795

19

6,901

125

0

9,840

Reclassification1

0

0

0

0

0

0

Charge to the profit and loss account

0

296

1,750

0

0

2,046

Credit to the profit and loss account

(503)

0

(657)

0

0

(1,160)

Utilised during the year

(100)

(275)

(1,186)

(125)

0

(1,686)

At 27 March 2013

2,192

40

6,808

0

0

9,040

 

 

 

 

 

 

 

Amounts due as follows:

 

 

 

 

 

 

- within one year

2,192

40

6,808

0

0

9,040

- after more than one year

0

0

0

0

0

0

 

2,192

40

6,808

0

0

9,040

 

 

 

 

 

 

 

1 Reclassification of amounts previously included in other accruals (Note 13).

(a) Environmental reinstatement

Environmental reinstatement costs include:

(i) Costs that will be incurred at the end of the economic lives of the peatlands. Under FRS 12 ‘Provisions, Contingent Liabilities and Contingent Assets’, provision is made for these costs when the circumstances occur giving rise to the obligation under the Group’s Integrated Pollution Prevention Control licence to decommission and reinstate the peatlands post peat production. The provision of 15,772,000 as at 27 March 2013 represents the present value of the expected future costs of decommissioning and reinstatement. The costs are provided on a discounted basis and a financing charge is included in the profit and loss account and added to the provision each year.

(ii) Environmental provisions of 6,742,000 recognised in accordance with FRS 12 in respect of the Group’s assessment of environmental liabilities in relation to an AES site which was in existence prior to the Group’s acquisition of the business in May 2007. The provisions are based on the Group’s estimate of the present value of future remediation costs, based on advice received from third party environmental experts.

(iii) The cost of maintaining the landfill facility post closure (2028) and the cost of capping existing engineered cells in use. The Group’s minimum unavoidable costs measured at present value amount to 10,091,000 at 27 March 2013. The Group continue to review the composition and quantum of these costs which may be impacted by a number of factors including changes in legislation and technology. The total post closure costs of landfill sites, including such items as monitoring, gas and leachate management and licensing, have been estimated by management based on current best practice and technology available. The dates of payments of these aftercare costs are uncertain but are anticipated to be over a period of approximately thirty years.

(iv) Certain other environmental restoration costs of 2,192,000 are recognised in accordance with the provisions of FRS 12, being the Group’s estimate of waste removal and waste management costs associated with certain of its lands. These costs may be impacted by a number of factors including changes in legislation and technology. These estimates are reviewed annually based on advice from third party environmental experts.

(v) A provision of 1,102,000 is made for power station closure costs based on the present value of the current estimate of the costs of closure of generating stations at the end of their useful economic lives. The costs are provided on a discounted basis and a financing charge is included in the profit and loss account and added to the provision each year.

(vi) A provision of 1,013,000 is made for plant closure costs based on the present value of the current estimate of the costs of closure of briquette and horticulture compost plants at the end of their useful economic lives. The costs are provided on a discounted basis and a financing charge is included in the profit and loss account and added to the provision each year.

(b) Reorganisation and redundancy

A provision for reorganisation and redundancy costs is recognised when a constructive obligation exists. The provision represents the Directors’ best estimate of the cost of these measures and it is expected to be used within the next year. Included in debtors at 27 March 2013 is a sum of 194,000 (2012: 254,000) which is recoverable from the Department of Enterprise, Trade and Innovation.

(c) Insurance

The insurance provision relates to employer’s, public and product liability claims covered under the Group’s self-insurance policy. This provision is determined on completion of a case by case assessment. The provision includes a sum for incidents incurred but not reported at the balance sheet date.

(d) Other

Other provisions include various anticipated warranty, refundable deposits and other costs, including costs yet to be incurred relating to contracting work carried out.

(e) Deferred tax

The deferred tax provision is comprised of:

 

THE GROUP

THE COMPANY

 

2013

2012

2013

2012

 

’000

’000

’000

’000

 

Accelerated capital allowances

7,095

7,030

(173)

(175)

General provisions

(353)

(348)

(136)

(160)

Unutilised tax losses

(131)

(153)

0

0

Undiscounted provision for deferred tax

6,611

6,529

(309)

(335)

Pension asset - deferred tax liability (Note 25)

0

139

 

Pension liability - deferred tax asset (Note 25)

(6,751)

(5,403)

 

Deferred tax including that relating to pension deficit

(140)

1,265

 

The movement on deferred tax during the year was as follows:

 

 

Deferred tax at the beginning of the financial year

1,265

4,431

(335)

(281)

Deferred tax charge/(credit) in the profit and loss account excluding charge related to pensions

82

139

26

(54)

Deferred tax charge in the profit and loss account related to pensions

383

525

0

0

Net deferred tax charge/(credit) in the profit and loss account (Note 6)

465

664

26

(54)

Deferred tax on pension liability in statement of total recognised gains and losses

(1,870)

(3,864)

0

0

Loss relief surrendered to minority shareholder

0

34

0

0

Deferred tax at the end of the financial year

(140)

1,265

(309)

(335)

 

 

 

Deferred tax provision

7,773

7,819

0

0

Deferred tax asset (Note 12)

(1,162)

(1,290)

(309)

(335)

Deferred tax liability related to pension fund asset (Note 25)

0

139

0

0

Deferred tax asset related to pension fund liability (Note 25)

(6,751)

(5,403)

0

0

 

(140)

1,265

(309)

(335)

 

 

 

At 27 March 2013 the Group had other potential deferred tax assets amounting to 1,380,000 (2012: 1,810,000). These assets have not been recognised due to uncertainty over recoverability.

18. Share capital

 

2013

2012

 

’000

’000

Authorised

 

 

300,000,000 ordinary shares of 1.27 each

380,921

380,921

 

 

 

Allotted and fully paid

2013

2013

2013

2012

2012

2012

 

Share
Capital

Share Premium

Total

Share
Capital

Share Premium

Total

 

’000

’000

’000

’000

’000

’000

 

At beginning of the financial year

82,804

1,959

84,763

82,804

1,959

84,763

At end of the financial year

82,804

1,959

84,763

82,804

1,959

84,763

 

 

 

 

 

 

 

At 27 March 2013 the total number of ordinary shares allotted and fully paid was 65,212,638 (2012: 65,212,638).

In December 2008, Bord na Móna plc put in place an Employee Share Ownership Plan (ESOP) to facilitate the issue of 5% of the issued share capital of Bord na Móna plc to eligible employees of the Company and its Irish subsidiaries. These shares were provided to employees in return for the agreed business transformation achieved in a number of years prior to 2008.

In December 2008, Bord na Móna plc issued 3,260,631 shares to Bord na Móna ESOP Trustee Limited for 6,100,000. The principal rights attaching to each share include the right to exercise a vote at annual general meetings of the shareholders, entitlement to dividends from profits when declared and the right to proportionate participation in a surplus on winding up. The shares were issued at a value of 1.87 per share which resulted in a share premium of 1,959,000. The shares were initially held by the Trust before being appropriated on the third anniversary of the allocation date. In December 2011, all of the shares were appropriated to the eligible participants through the Approved Profit Sharing Scheme in accordance with the rules of the scheme.

19. Minority shareholders’ interest

 

Equity

Non-equity

 

interests

interests

Total

 

’000

’000

’000

 

At 28 March 2012

(397)

1,238

841

Share of loss for the financial year

(9)

0

(9)

Repayment during the year

0

(248)

(248)

Transfer to financial liability

0

(990)

(990)

At 27 March 2013

(406)

0

(406)

 

 

 

 

During the year the minority shareholders’ share of the non-equity loan was transferred to current liabilities as a result of a change in terms.

20. Amounts included in cash flow statement

(a) Reconciliation of operating profit to net cash flow from operating activities

 

2013

2012

 

’000

’000

 

Operating profit

23,508

(3,663)

Depreciation of tangible assets

35,686

38,399

Impairment of tangible assets

0

6,876

Amortisation of intangible assets

2,501

3,291

Impairment of intangible assets

0

16,857

Impairment of investment property

910

777

Non-cash consideration for acquisition undertaking (Note 21)

0

(1,626)

Profit on sale of fixed assets

(63)

(172)

Amortisation of capital grants

(1,361)

(1,391)

Difference between provisioning charges and payments

1,486

(362)

Difference between pension charge and cash contributions

(3,762)

(2,603)

Decrease/( increase) in stocks

40,371

(12,482)

(Increase)/decrease in debtors

(2,141)

2,690

Increase/(decrease) in creditors

11,333

(4,325)

Net cash flow from operating activities

108,468

42,266

 

 

(b) Analysis of cash flows for headings netted in the cash flow statement

 

2013

2012

 

’000

’000

Returns on investments and servicing of finance

 

 

Interest paid

(15,990)

(16,068)

Interest received

4,885

5,911

Dividends paid to minority shareholders in subsidiary undertaking

0

(123)

Net cash outflow

(11,105)

(10,280)

 

 

Capital expenditure and financial investment

 

Payments to acquire tangible fixed assets

(38,718)

(23,865)

Proceeds from disposal of fixed assets

179

327

Payments to acquire intangible fixed assets

(1,269)

0

Investment in joint venture

(2,025)

0

Net cash outflow

(41,833)

(23,538)

 

 

Acquisitions and disposals

 

Acquisition of undertakings (Note 21)

0

(1,708)

Net cash outflow

0

(1,708)

 

 

Financing

 

Net cash inflow

0

0

 

 

 

(c) Analysis of net debt

 

At beginning of year

Cash Flow

Non-cash

At end of year

 

’000

’000

’000

’000

 

Unsecured loan notes (Note 15)

(263,040)

0

(176)

(263,216)

Convertible loan notes (Note 15)1

0

0

(990)

(990)

Cash

196,326

50,845

0

247,171

Net debt

(66,714)

50,845

(1,166)

(17,035)

 

 

 

 

 

1 During the year convertible loan notes of 990,000 were reclassified to financial liabilities (Note 19).