Year End Trading Update

RNS Number : 6488K
Forth Ports PLC
23 December 2008

23rd December 2008

YEAR END TRADING UPDATE

Forth Ports PLC issues its year end trading update for the year ending 31st December 2008. Our key highlights in the statement are as
follows:-

* Underlying profit before tax for the full year to be in line with market expectations.
* Bank refinancing secured.
* Good planning progress made in property despite the severe downturn in market conditions affecting valuation.
* Cash to be conserved in 2009 as a measure of prudence.
* The outlook is one of resilience as a result of our secure and diverse port revenue streams.

Ports Division

Underlying trading within the Ports Division is showing a good level of growth for 2008 due to progress at both Tilbury and the Scottish
Ports. At Tilbury, Ro-Ro traffic has increased by over 65%. Grain volumes have increased by nearly 10%. Tilbury is working with the
Olympic Delivery Authority to promote waterborne transport for the 2012 Olympic Games where the aim is that 50% of the Olympic Park
construction materials by weight will travel by rail or water. In addition, many of our major customers have been awarded a place on the
Timber Supply Panel for the Olympic Games which should ensure that a considerable proportion of the plywood and timber required for the
Olympics site will transit through Tilbury.

Volumes at Tilbury Container Services have also increased significantly over last year. However, as we indicated in our Interim
Management Statement on 31st October 2008, there has been a noticeable slowdown in the second half reflecting the weaker conditions in the
general container market.

The Nordic Group has recently seen a deterioration in trading conditions primarily due to the weakness in relevant commodity prices.

The Scottish Ports have continued to see growth in liquid bulk tonnages, particularly at Hound Point and Braefoot, and excellent volume
increases in containers at Grangemouth. Coal and steel pipe traffic remained steady at Leith.

Property Division

The Outline Planning Application ("OPA") for the Edinburgh Harbour development was submitted to City of Edinburgh Council ("CEC") on
10th December 2008. The OPA incorporates proposals for the first two villages of the Leith Docks Plan which include a mixed use development
of 1,900 residential units, 16,000 sq.m. of retail, 99,000 sq.m. of office and 19,000 sq.m. of leisure. Detailed discussions with CEC on
this application will take place during the course of 2009. Jones Lang Lasalle are reviewing the scheme and will advise the Group next year
on its timing and marketing to potential partners.

The Scottish Government has decided not to call in the Leith Docks OPA and has cleared it back to CEC for final determination.

Since the Interim Management Statement, there has been a further significant and much publicised deterioration in market conditions
which will affect the year-end Market Value of our Property assets. Although the Group expects that the overall Market Value will be in
excess of the current carrying value of the property work in progress, there are likely to be non-cash write-downs on specific development
sites, when tested individually, at the end of the year to reflect market conditions at that time. The deterioration in market conditions
and yields will affect the valuation of our interest in Ocean Terminal which will, in turn, affect Ocean Terminal's specific loan to value
ratio. We have, however, agreed in principle with HBOS a refinancing solution for Ocean Terminal. We believe that the long-term growth
prospects for the centre remain positive and, indeed, an expansion of Ocean Terminal is contemplated in the OPA which has been submitted to
the CEC.

Finance

We have concluded new banking facilities of �275m which incorporate a �250m revolving credit facility which will mature on 30th June
2012, together with a �25m Multi-Option facility which has been extended and will mature on 30th June 2010. The Group will also have the
ability to take advantage of an additional �20m of asset finance facilities. The margin under the new facility has increased to an average
of 162 basis points compared with 83 basis points previously. The interest rate on �200m of borrowings has been fixed which will result in
an average interest rate (including margin) of 4.4% in 2009 compared with an estimated 6.3% in 2008. Net debt at the end of 2008 is
expected to be approximately �210m.

Outlook

Our Ports business is broadly based, handling basic and essential goods, with a significant proportion of revenues secure. It is
therefore well positioned to withstand a period of economic weakness.

Given anticipated economic conditions, we are planning for a more challenging revenue environment next year. Against this background,
the Group is focussed on protecting the revenue base, reducing costs and conserving cash with significantly reduced property spend and a
reduction in the level of capital expenditure in Ports. We remain confident of the medium and long-term growth opportunities for the
Group.

The Group expects to announce its preliminary results for the year to 31st December 2008 on 16th March 2009.

Enquiries:

Charles Hammond, Group Chief Executive Forth Ports PLC 0131 555 8700
Wilson Murray, Group Finance Director Forth Ports PLC 0131 555 8700

Jon Coles/Kate Miller Brunswick 0207 404 5959

Notes to Editors:

Forth Ports PLC owns and operates seven commercial ports in the UK - Tilbury on the Thames, Dundee in the Firth of Tay and five in the
Firth of Forth - Leith, Grangemouth, Rosyth, Methil and Burntisland. We also operate out of Chatham in Kent under the Nordic banner.

Within and around the Firths of Forth and Tay, Forth Ports manages and operates an area of 280 square miles of navigable waters,
including two specialised marine terminals for oil and gas export and provides other marine services, such as towage and conservancy.

The Group also has significant property interests which it continues to develop as part of its commitment to increase shareholder
value.

This information is provided by RNS
The company news service from the London Stock Exchange

END

TSTPUGMAPUPRGMP

Forth Ports (LSE:FPT)
Historical Stock Chart
From Jun 2024 to Jul 2024