Interim Management Statement
May 17 2011 - 4:14AM
UK Regulatory
TIDMICGC
INTERIM MANAGEMENT STATEMENT
Highlights
* Passenger & Freight revenue up EUR3.3 million
* Recovery in Ro Ro freight volumes
* Fuel cost up EUR2.9 million in 4 months
* Initiative to reduce VAT on hospitality a positive for tourism
Volumes (Year to date, 14 May 2011)
Cars 96,700 -1.4%
Passengers 430,100 -6.5%
RoRo Freight 70,900 +11.7%
Container Freight (teu) 151,600 -2.7%
Terminal Lifts 69,900 +14.5%
Financial (January - April 2011)
2011 2010
Revenue EUR77.5m EUR75.7m +2.4%
EBITDA EUR5.2m EUR8.0m -35.0%
EBIT (EUR1.6m) EUR0.6m
Profit (loss) before tax (EUR1.2m) EUR0.2m
Net Debt EUR4.0m EUR6.3m (31 December)
Current Trading
ICG issues this interim management statement which covers volume data up to 14
May 2011 (i.e. 19 weeks) and financial information for the first four months of
the year. 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. Also, the
comparative figures for 2010 include the period during which European airspace
was closed due to volcanic ash, which had a significant positive impact on
passenger volumes in particular, in 2010.
In the first four months of the year Group revenue was up 2.4% at EUR77.5 million,
compared with EUR75.7 million in the same period last year. Passenger and freight
revenue was up 4.5% while charter revenue was down EUR1.4 million due to the
termination of the charter of the Pride of Bilbao. Operating costs (before
depreciation & amortisation) were 6.8% higher at EUR72.3 million versus EUR67.7
million the previous year, principally due to a 24% increase (of EUR2.9 million)
in fuel costs to EUR15.3 million. The remaining cost increases were primarily
volume-related port charges arising from increased Ro Ro freight volumes.
Earnings before interest tax and depreciation (EBITDA) were EUR5.2 million
compared with EUR8.0 million in the same period in 2010. The termination of the
charter of the Pride of Bilbao resulted in a reduction in EBITDA of EUR1.4 million
although this was offset by depreciation savings of EUR0.8 million and interest
receivable of EUR0.6 million. There was net interest receivable of EUR0.4 million
compared with a charge of EUR0.3 million the previous year. The loss before
interest was EUR1.6million (2010 profit EUR0.6 million) while the loss before tax
was EUR1.2 million (2010 profit EUR0.2 million). Net debt at the end of April was
EUR4.0 million compared with EUR6.3 million at 31 December 2010.
In the period up to 14 May 2011, we carried 96,700 cars, a 1.4% reduction on the
same period last year. The lower volumes were compensated for by higher yields.
In the previous year, we had an unprecedented increase in passengers in April
due to the ash cloud disruption to air travel. Consequently while our total
passenger numbers were in line with expectations at 430,100, they were 6.5%
behind the same period in 2010. On a like for like basis, i.e. ignoring
exceptional passenger business carried during the ash cloud, underlying
passenger and car business is in line with 2010.
In the Roll on Roll off freight market, while the overall market is weaker than
expected, Irish Ferries carried 70,900 units, an increase of 11.7% compared with
the same period in 2010.
Container freight volumes shipped decreased by 2.7% to 151,600 teu (twenty foot
equivalent units) in the period to 14 May 2011 compared with the same period
last year with an increase in freight to and from Ireland offset by a reduction
on the North Sea. Units handled at our terminals in Dublin and Belfast increased
by 14.5% year on year, over the same period.
Outlook
The greatest threat to our financial performance this year is the very
significant increase in our fuel cost, following on from the EUR10 million
increase in our fuel bill in 2010. We were successful last year in passing on
that increase in that financial year. However given the scale of the back-to-
back increase in 2011, it will be a significant challenge to pass on all of this
increase in the remainder of the current financial year, if oil remains at
current price levels. Notwithstanding the current difficult economic backdrop we
are confident of passing on fuel cost increases through the cycle, as has been
successfully proven by our business model in the past.
Container volumes, particularly on the North Sea, are seeing some reduction due
to the disruption in the supply chain arising out of the earthquake in Japan.
While it is too early to predict the Summer tourism market, the reductions in
VAT in the hospitality sector recently announced in the Government's jobs
initiative is a positive for inward tourism which is also likely to be boosted
by Tourism Ireland's recently announced 30% increase in its marketing budget in
the UK market. The capacity reductions in the Ro Ro market and the airline
sector are positive backdrops while the strength of the balance sheet is a major
positive in the current market.
Dublin
17 May 2011
Enquiries
Eamonn Rothwell, CEO, +353 1 607 5628
Garry O'Dea, Finance Director, +353 1 607 5628
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(i) the releases contained herein are protected by copyright and
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Irish Continental Group plc via Thomson Reuters ONE
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