Coillte profits rise by 36% to €25.5m in 2003

Coillte, the State forestry group, has reported a strong increase in profits for 2003, when the group made €25.5 million.

The profit figure represents an increase of 36 per cent on the previous year. Turnover was up 19 per cent, to €172 million.

The group performed solidly in most of its business areas. There was increased revenue from log sales and a significantly improved performance at oriented strand board manufacturer SmartPly Europe Ltd, which was recently acquired.

Other factors behind the strong results were increased efficiency and good results in its land-based businesses, Coillte said in a statement.

The improvement was offset by losses in the Nurseries and Planting Business Units arising from cutbacks in the national forestry programme in 2003.

In the group's forestry business, Coillte Forests, revenue from timber sales increased by 13 per cent on 2002.

Performance varied in 2003 across Coillte Enterprises, which manages Coillte's non-forestry businesses.

Significant progress was made in the group's land-based businesses including the sale of valuable wind farm sites, the sale of non-strategic property and the leasing of radio mast sites.

Planning permission was received for the development of four wind farm sites, totalling 140 mega watts of capacity, on which co-development agreements had been completed in 2002.

Contracts were also signed with third-party wind farm developers to sell or lease three wind farm sites.

Good progress was also made in the Forestry Services, Wood Products, Leisure and Recreation, Tree Services and Landscaping businesses, according to the group.

The accounts published yesterday show that Coillte chief executive, Mr Martin Lowery, was paid a salary of €191,000 in 2003 and a total remuneration package of €253,000.

The average number of people employed by the group during the year was 1,213.

Staff costs were €53.6 million.