ICGC Irish Continental Group Plc

 
TIDMICGC 
 
INTERIM MANAGEMENT STATEMENT 
 
 
Highlights 
 
Volumes   (Year to date, 8 May 2010) 
 
 Cars                       92,500    -5.6% 
 
 Passengers                431,500   +10.4% 
 
 RoRo Freight               63,000   -15.1% 
 
 Container Freight (teu)   147,000   +10.5% 
 
 Terminal Lifts             57,700    +5.6% 
 
 
 
Financial (January - April 2010) 
 
 Revenue               EUR75.7m   -0.7% 
 
 EBITDA                 EUR8.0m    0.0% 
 
 Net Debt (May 2010)   EUR16.0m       (EUR21.7m 31 Dec 2009) 
 
 
 
 
Irish  Continental Group plc  (ICG) issues this  Interim Management Statement in 
accordance  with  the  reporting  requirements  of  the Transparency Regulations 
2007. The statement covers the period from 1 January 2010 to date.  It should be 
noted  that ICG's business is significantly  weighted towards the second half of 
the  year when normally a  higher proportion of the  Group's operating profit is 
generated than in the first six months. 
 
 
 
Current Trading 
In the first four months of the year Group revenue was EUR75.7 million,   compared 
with  EUR76.2 in the same  period last year. Higher  passenger and car revenue was 
offset  by  lower  freight  revenue.  Operating  costs  (before  depreciation  & 
amortisation)   were  EUR67.7.million  versus  EUR68.2  million  the  previous  year 
including an increase of EUR4.1 million in fuel costs to EUR12.4 million.   Earnings 
before  interest tax and depreciation (EBITDA) were EUR8.0 million compared with EUR 
8.0 million in the same period in 2009. 
 
In  the period up to 8 May 2010, we carried 92,500 cars, a 5.6% reduction on the 
same  period  last  year  (3.7%  lower  on  the Irish Sea and 21.7% lower on the 
Ireland  France route due  to a two  month later start  of the service following 
winter  vessel refit).  The lower volumes were compensated for by higher yields. 
 Our  total  passenger  numbers  were  up  by  40,500 (10.4  %)  at 431,500. The 
substantial  increase in passenger  numbers was influenced  by a 49% increase in 
foot  and coach passengers due partly, but not exclusively, to the disruption to 
air  travel to  and from  Ireland during  the closure  of European airspace from 
15th to  21st April.  (Prior to the airspace closure foot passenger numbers were 
already up 18% versus 2009). 
 
 
 
 
In  the Roll  on Roll  off freight  market, while  the overall market is showing 
signs  of modest growth (low single digits)  for the first time in approximately 
18 months,  excess Ro  Ro freight  capacity continues.    Irish  Ferries carried 
60,300 Ro  Ro units compared with 71,000 in the same period in 2009, a reduction 
of  15.1 %.    Our carryings  have  been adversely influenced by  the additional 
capacity put in place in 2009  by competitors on both the Dublin to Holyhead and 
Dublin  to Liverpool routes  despite market demand  being at substantially lower 
levels than in 2007/ 8.   The comparative capacity on Dublin to Holyhead will be 
on  a like for  like basis from  early April onwards.    In the last 4 weeks our 
RoRo  carryings  were  down  4 %  on  the  same  period  in  2009, a substantial 
improvement in trend. 
 
Container  freight has returned to growth and our volumes shipped rose by 10.5% 
to  147,000 teu  (twenty  foot  equivalent  units)  in the period to 8 May 2010 
compared with the same period last year although rate levels are lower than last 
year.   Units handled at our terminals in  Dublin and Belfast increased by 5.6 % 
year on year, over the same period 
 
The  Group's balance sheet and cash  flow characteristics remain strong. Current 
net  debt is approximately  EUR16 million, down  from EUR21.7 million at 31 December 
2009. Liquidity remains strong with gross cash balances of EUR25 million. 
 
 
 
Outlook 
The  recent closures of Irish airspace  have reinforced the strategic importance 
of sea access to the island of Ireland for both passengers and freight. 
 
Forward  bookings  for  Irish  Ferries  have  improved  during  recent  weeks as 
uncertainty  about  the  effects  of  volcanic  ash on air travel continues. The 
reaction  from customers who used our  services during the recent disruption has 
been  universally positive  and we  are hopeful  that this  will lead  to repeat 
business, particularly for summer car traffic. 
 
The  decline  in  the  RoRo  market  has  halted after almost eighteen months of 
overall decline with small growth in the first quarter of 2010. The base effects 
of  the increase  in competitor  capacity, introduced  in 2009, will start to be 
reflected  in the comparative figures from now although the full impact from the 
long  sea routes will not  be comparable until later  in the year.  The trend in 
Irish  Ferries RoRo volumes has been improving  in recent weeks relative to last 
year. The container freight market is also recovering although some freight rate 
levels  being offered are  unsustainably low.  Finally,  the recent weakening of 
the  Euro against Sterling is a positive development for both inbound tourism to 
Ireland  and also Irish exports to the UK, both of which are core business flows 
for ICG. 
 
 
 
 
Dublin 
13 May 2010 
 
 
Enquiries 
 
Eamonn Rothwell, CEO,  +353 1 6075628 
Garry O'Dea, Finance Director,  +353 1 6075628 
 
 
 
 
[HUG#1415454] 
 

Irish Continental (LSE:ICGC)
Historical Stock Chart
From Jun 2024 to Jul 2024

Irish Continental (LSE:ICGC)
Historical Stock Chart
From Jul 2023 to Jul 2024