Irish Continental Group plc : Final Results
March 08 2012 - 2:00AM
UK Regulatory
TIDMICGC
Statement of Results for the year ended 31 December 2011
+--------------------------------------------+---------+---------+----------+
| FINANCIAL HIGHLIGHTS | 2011 | 2010 | Change % |
+--------------------------------------------+---------+---------+----------+
| | | | |
+--------------------------------------------+---------+---------+----------+
| Revenue | EUR273.3m | EUR262.2m | +4.2% |
+--------------------------------------------+---------+---------+----------+
| EBITDA | EUR49.1m | EUR53.6m | -8.4% |
+--------------------------------------------+---------+---------+----------+
| Operating Profit (before non-trade credit) | EUR28.9m | EUR31.5m | -8.3% |
+--------------------------------------------+---------+---------+----------+
| EPS Basic | 111.1c | 156.8c | -29.1% |
+--------------------------------------------+---------+---------+----------+
| EPS Diluted | 110.4c | 155.7c | -29.1% |
+--------------------------------------------+---------+---------+----------+
| EPS Adjusted | 109.9c | 121.0c | -9.2% |
+--------------------------------------------+---------+---------+----------+
| EPS Adjusted Diluted | 109.2c | 120.2c | -9.2% |
+--------------------------------------------+---------+---------+----------+
| Net Debt | EUR7.8m | EUR6.3m | +23.8% |
+--------------------------------------------+---------+---------+----------+
| Net Pension Deficit | EUR32.5m | EUR17.5m | +85.7% |
+--------------------------------------------+---------+---------+----------+
Carryings
+--------------------------+-------+-------+----------+
| | 2011 | 2010 | |
+--------------------------+-------+-------+----------+
| | '000 | '000 | Change % |
+--------------------------+-------+-------+----------+
| Passengers | 1,527 | 1,538 | -0.7% |
+--------------------------+-------+-------+----------+
| Cars | 353 | 367 | -3.8% |
+--------------------------+-------+-------+----------+
| RoRo Freight | 194 | 178 | +9.0% |
+--------------------------+-------+-------+----------+
| Container Freight (teu*) | 407 | 406 | +0.2% |
+--------------------------+-------+-------+----------+
| Port Lifts | 187 | 167 | +12.0% |
+--------------------------+-------+-------+----------+
*teu = twenty foot equivalent units
Commenting on the results Chairman John B McGuckian said,
"I am pleased to be able to report a solid performance by Irish Continental
Group with revenue up over 4%, and EBITDA and operating profit of EUR49.1 million
and EUR28.9 million respectively, down about 8% despite an increase of 26% in our
fuel bill to EUR52.1 million. The current year will be challenging as fuel costs
have further increased but with our disciplined approach to capacity I am
confident of the Groups prospects."
Irish Continental Group (ICG) is a leading Irish based maritime transport group.
ICG carries passengers and cars, Roll On Roll Off freight and container Lift On
Lift Off freight, on routes between Ireland, the United Kingdom and Continental
Europe.
STATEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011
Irish Continental Group (ICG) produced a strong performance in 2011 when account
is taken of the weak economic environment and increased world oil prices.
Revenue grew by 4.2% to EUR273.3 million while EBITDA was EUR49.1 million compared
with EUR53.6 million in the previous year, down EUR4.5 million, a robust performance
in the context an increase of EUR10.7 million in fuel costs in the year. Operating
Profit was EUR28.9 million compared with underlying operating profit (before non-
trade credit) in 2010 of EUR31.5 million while adjusted EPS was 109.9 cent
compared with 121.0 cent in 2010.
In June the Group paid a final dividend of 100 cent per ICG unit in respect of
2010 (totalling EUR25.1 million). The Board also decided to return to the policy
of paying an interim and final dividend rather than one single payment and
consequently declared an interim dividend in respect of 2011 of 33 cent per ICG
unit. This was paid in November 2011 and totalled EUR8.2 million. During the year
the company also purchased 1% of the outstanding equity which was subsequently
cancelled. This means that in cash terms a total of EUR37.3 million was returned
to shareholders during the year. The Board is proposing a final dividend for
2011 of 67 cent, to be paid in June of 2012.
During the year the Group's financial position remained strong. At the start of
the year the Group's net debt was EUR6.3 million and, despite having returned
EUR37.3 million to shareholders as I set out above, the Group ended the year with
net debt of only EUR7.8 million.
OPERATING REVIEW
FERRIES DIVISION
The Ferries division employs five owned multipurpose ferries, four of which are
operating on routes to and from the Republic of Ireland and one on charter and
operating in New Zealand. 4,311 sailings were operated by Irish Ferries in 2011
carrying passengers, passenger vehicles and Roll On Roll Off freight (Ro Ro), a
reduction of 3% on the previous year.
Turnover in the division was 1.2% higher than the previous year at EUR155.5
million while earnings before interest and tax were EUR22.0 million compared with
EUR24.5 million in 2010. The reduction in profit was due principally to higher
fuel costs which were only partially recovered from the market place. Fuel cost
in the division was up EUR6.9 million (24.7%) to EUR34.8 million. Revenue in the
first half of the year was up 0.3% at EUR68.2 million while in the second half the
increase was 1.9%, to EUR87.3 million.
Passenger
Following on from a very challenging previous year, when total passenger
movements to and from Ireland (air & sea) declined by 9%, 2011 provided some
relief with a 1% increase in the total travel market (a 2% increase in the air
market and a 6% drop in the sea market). The benefits for surface carriers which
arose from air traffic disruption events (Ash Cloud and weather related airport
closures) in 2010 did not reoccur and the continued poor consumer sentiment in
our key markets of the UK and Ireland did not assist performance. Austerity
programmes in both markets affected discretionary spend which led to further
downward pressure on passenger volumes.
The car market to and from the Republic of Ireland fell by 7% in the year.
Within this, trips to and from Britain were down about 8%, while the number of
cars carried between Ireland and France grew 2.5%. Irish Ferries outperformed
the market with a 4% reduction in cars carried to 353,000 cars (2010: 367,000).
Irish Ferries' passenger numbers carried were down 0.7% at 1.527 million
(2010:1.538 million). Overall, in the first half, our passenger volumes were
down 3.6% and the car numbers down 3.1%. In the second half of the year the
growth in passenger numbers was 1.7% while cars carried were down 4.4% compared
with the same period last year. Increase in yields over 2010 partially
compensated for the effects of the decrease in volumes.
By continuing our focus on enhancing the experience of our passengers from the
point of enquiry / booking to the ports and on-board experience, we have managed
to provide good value in an environment where discretionary travel spend is even
more carefully considered by most consumers. We rely heavily on customer
feedback when determining the nature and extent of new investment in all areas
of our product offering.
Clearly, the sustained increase in our fuel costs once again provided real
challenges in determining ticket prices. Our objective is to provide maximum
value to our markets whilst maintaining some equilibrium in the returns we make
from this key area of revenue earnings.
We are conscious of our need to assist in Ireland's efforts in the recovery of
the island's tourism markets, particularly its largest being Britain. We
continue to work closely with all of the state agencies concerned which includes
close cooperation with Tourism Ireland in their promotional campaigns. Our
estimate of the current annual value of Irish Ferries tourist traffic into the
Republic of Ireland exceeds EUR400 million and we are confident that we can
increase that level as recovery of our tourism industry gains ground in the
coming years.
Freight
The growth trend of the Republic of Ireland's Roll On Roll Off market remains
challenging as the gains recorded in 2010 ( +11% ) slowed to a flat overall
market in 2011.
There were some significant capacity changes during the year as one competitor
opted to close its long sea routes into Dublin from Liverpool and Heysham whilst
another decided to replace some of that capacity virtually immediately whilst
adding to it in the later part of the year. Another competitor opted to increase
driver accompanied capacity on the Dublin / Liverpool route.
There were also changes on the Northern Corridor primarily around vessel
replacement along with some acquisition activity. Development of new terminal
capacity at Cairnryan, which occurred very late in the year, did result in some
transfer of traffic from the Central Corridor to the Northern Corridor with the
Island of Ireland market flat during 2011. Once again, Irish Ferries
outperformed the market with growth of 9%, carrying over 194,000 units during
the year.
The extremely challenging economic circumstances in the Republic of Ireland
contributed to the lack of growth in the market and the pressure on operating
costs for our freight customers remained intense. Irish Ferries remained focused
on delivering high quality service combined with real value for regular users of
our services. The backdrop of increased fuel costs made life very difficult for
ourselves and our customers.
Irish Ferries' performance during the year was driven by the consistency of its
service as the benefits of our investment in state of the art tonnage continued
to be apparent in our sailing schedule integrity for Ro Ro customers. In
addition, we made further progress in the rolling out of our superior web based
booking system. This has been met with a very positive response from customers,
particularly in respect of the mobile handset facilities which appeal to
operations and driving staff alike.
Charter
The Kaitaki remained on bareboat charter to P&O during the period and operated
between the North and South Islands of New Zealand on a sub-charter. The current
charter runs until 30 June 2013.
CONTAINER AND TERMINAL DIVISION
The division includes Eucon and Feederlink's intermodal freight services which
offer both door-to-door and feeder services. Within the division we operate a
fleet of container vessels ranging in size from 400 - 1,000 teu capacity (teu =
twenty foot equivalent unit, the standard measure in the container industry),
employing 3,000 owned and leased containers (equivalent to 5,800 teu) and our
strategically located container terminals in Dublin and in Belfast.
Turnover in the division rose by 8.5% to EUR119.1 million with an increase on our
routes between Ireland and Continental Europe and in our port terminals more
than compensating for a decline in North Sea revenue where we had elected, in
the second half of 2010, to forego certain flows of business due to the
uneconomic rates on offer. With our flexible chartered fleet we were able to
adjust capacity to the volume of trade. Operating profit in the division was
down 1.4% at EUR6.9 million due mainly to higher fuel costs (up 28.1% to EUR17.3
million). Overall container volumes shipped were in line with the previous year
at 407,000 teu (2010: 406,000 teu) with a rise in volumes to and from Ireland
offsetting a fall on the North Sea.
Containers handled at the Group's terminals in Dublin (DFT) and Belfast (BCT)
were up 12.0% at 187,000 lifts (2010: 167,000 lifts). The outlook for the
division is dependent on world trade and also exports and imports to and from
Ireland.
FINANCIAL REVIEW
RESULTS
Turnover for the year amounted to EUR273.3 million (2010: EUR262.2 million) while
operating profit amounted to EUR28.9 million compared with underlying operating
profit (before non-trade credit) in 2010 of EUR31.5 million. Principal variations
on the prior year include group wide fuel costs which were substantially higher
in the year at EUR52.1 million (2010: EUR41.4 million). The net interest charge was
EUR1.0 million (2010: EUR0.3 million) before a net interest credit from defined
benefit pension schemes of EUR0.3 million (2010: charge EUR0.5 million).
DIVIDEND
During the year a final dividend of 100 cent per ICG Unit was paid for the year
ended 31 December 2010 and also an interim dividend of 33 cent per ICG Unit was
paid for the year ended 31 December 2011. The Board is proposing a final
dividend of 67 cent per ICG Unit.
Subject to shareholder approval at the Annual General Meeting, the dividend will
be paid on 22nd June 2012 to shareholders on the register at close of business
on 8th June 2012. Irish dividend withholding tax will be deducted where
appropriate.
OUTLOOK
Ireland is a very open economy and trade flows in 2012 will be negatively
affected by the slowdown in the UK and the Euro area and positively impacted by
the growth in the USA and the emerging economies. The Irish consumer faces
another difficult year as austerity programmes continue and this is likely to
affect import volumes. However there continues to be significant growth in
export driven companies opening new factories in Ireland. The integration story
of Ireland becoming more intertwined with the UK and Euro area economies
continues and should drive trade growth even in the absence of economic growth.
Irish agricultural exports remain very strong.
Turning more specifically to the prospects for the Group, as we stated in the
past fuel costs have been a significant headwind for the past number of years
and this continues to be the case. Our fuel bill rose EUR10 million approximately
in 2010, which we fully recovered, while fuel rose a further EUR10.7 million in
2011, of which we effectively recovered half. Based on current prices our fuel
bill for 2012 is likely to be 17% (or approximately EUR8 million) higher again,
which when combined with the EUR20.7 million already incurred will be a challenge
to recover in the near term.
In the year to date Irish Ferries has carried 31,100 cars, down 8.5% on 2011 and
138,600 passengers, up 0.8% on 2011. The reduction in car carryings partially
reflects an 11% reduction in our sailings in the year to date but also a quieter
than expected start to the year. The increase in total passenger movements
reflects a 17.2% increase in foot passengers. In the RORO freight market
carryings are down 3.8% on the previous year, at 30,200 units.
In the Container and Terminal Division there has been a weak start to the year
with container volumes shipped down 6.6% at 69,000 teu while units handled at
our port terminals are down 7.6%.
With respect to the peak carrying period later in the year there will be less
tourism capacity with the termination of the Cork - Swansea route and the
withdrawal of a competitor's fastcraft on the Rosslare route. There are a number
of other marginal operators on the Irish Sea who continue to lose money and are
likely to address their capacity. We continue to focus on reducing costs and
improving our cost leadership in the industry. We continue to have a strong
balance sheet with strong cash flow which is unique in our sector.
John B. McGuckian,
Chairman,
Enquiries:
+-----------------+-------------------------+-----------------+
| Eamonn Rothwell | Chief Executive Officer | +353 1 607 5628 |
+-----------------+-------------------------+-----------------+
| Garry O'Dea | Finance Director | +353 1 607 5628 |
+-----------------+-------------------------+-----------------+
As previously announced on 10 February 2012, the Company will make a
presentation of the results to investors at the offices of NCB Stockbrokers at
3 George's Dock, IFSC, Dublin 1, at 08.00 a.m. on 08 March 2012. In addition, a
dial-in facility will be available for overseas investors. Attendance at the
presentation will be strictly limited to investors who register in advance to
attend. To register to attend the presentation, either in person or via the
dial-in facility, investors should contact Triona Conway at +353 1 607 5628. A
copy of the presentation material will also be posted on the Company's website,
www.icg.ie
STATEMENT OF DIRECTORS' RESPONSIBILITIES
Irish Company Law requires the Directors to prepare financial statements for
each financial year which give a true and fair view of the state of affairs of
the Company and of the Group as at the end of the financial year and of the
profit or loss of the Group for that period. In preparing the financial
statements, the Directors are required to:
* select suitable accounting policies and then apply them consistently;
* make judgements and estimates that are reasonable and prudent; and
* prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company, and the Group as a whole, will
continue in business.
The Directors are responsible for keeping proper books of account which disclose
with reasonable accuracy at any time the financial position of the Company and
the Group and to enable them to ensure that the financial statements are
prepared in accordance with IFRS as adopted by the European Union and comply
with Irish statute comprising the Companies Acts, 1963 to 2009 and as regards
the Group financial statements Article 4 of the IAS Regulations, and the Listing
Rules of the Irish Stock Exchange. They are also responsible for safeguarding
the assets of the Company and the Group and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate
and financial information included in the Company website.
The Directors of ICG plc acknowledge these responsibilities and accordingly have
prepared this consolidated Annual Report for the year ended 31 December 2011 in
compliance with the provisions of Regulation (EC) No. 1606/2002, regulations 4
and 5 of Statutory Instrument 277 of 2007 of Ireland, the Transparency Rules of
the Irish Financial Services Regulatory Authority and the applicable
International Financial Reporting Standards as adopted by the European Union.
The Directors also confirm that to the best of their knowledge:
* the Group consolidated financial statements for the year ended 31 December
2011 have been prepared in accordance with the applicable International
Financial Reporting Standards and give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Group and the
undertakings included in the consolidation taken as a whole as at that date;
* the Business Review includes a fair review of the development and
performance of the business for the year ended 31 December 2011 and the
position of the Group and the undertakings included in the consolidation
taken as a whole at the year-end; and
* the Report of the Directors provides a description of the principal risks
and uncertainties which may impact on future performance of the Group and
the undertakings included in the consolidation taken as a whole.
Consolidated Income Statement
for the year ended 31 December 2011
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
| |Notes| 2011| 2010|
+------------------------------------+-----+------------------+----------------+
| | | EURm| EURm|
+------------------------------------+-----+------------------+----------------+
|Continuing operations | | | |
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
|Revenue | | 273.3| 262.2|
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
|Depreciation and amortisation | | (20.2)| (22.1)|
+------------------------------------+-----+------------------+----------------+
|Employee benefits expense | | (19.5)| (24.0)|
+------------------------------------+-----+------------------+----------------+
|Other operating expenses | | (204.7)| (184.6)|
+------------------------------------+-----+------------------+----------------+
| | | 28.9| 31.5|
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
|Non-trading credit | 4| -| 9.4|
+------------------------------------+-----+------------------+----------------+
|Operating profit | | 28.9| 40.9|
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
|Investment revenue | | 12.0| 11.6|
+------------------------------------+-----+------------------+----------------+
|Finance costs | | (12.7)| (12.4)|
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
|Profit before tax | | 28.2| 40.1|
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
|Income tax expense | 3| (0.5)| (1.1)|
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
|Profit for the year: all | | | |
|attributable | | | |
+------------------------------------+-----+------------------+----------------+
|to equity holders of the parent | | 27.7| 39.0|
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
|Earnings per share - expressed in EUR cent per share |
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
|From continuing operations: | | | |
+------------------------------------+-----+------------------+----------------+
|Basic | 5| 111.1c| 156.8c|
+------------------------------------+-----+------------------+----------------+
|Diluted | 5| 110.4c| 155.7c|
+------------------------------------+-----+------------------+----------------+
| | | | |
+------------------------------------+-----+------------------+----------------+
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2011
+------------------------------------------+------------------+----------------+
| | | |
+------------------------------------------+------------------+----------------+
| | 2011| 2010|
+------------------------------------------+------------------+----------------+
| | EURm| EURm|
+------------------------------------------+------------------+----------------+
| | | |
+------------------------------------------+------------------+----------------+
|Profit for the year | 27.7| 39.0|
+------------------------------------------+------------------+----------------+
| | | |
+------------------------------------------+------------------+----------------+
|Cash flow hedges: | | |
+------------------------------------------+------------------+----------------+
|Fair value gains arising during the year | -| 0.1|
+------------------------------------------+------------------+----------------+
|Transfer to Consolidated Income Statement | | |
|- net settlement | | |
+------------------------------------------+------------------+----------------+
|of cash flow hedged | (0.1)| -|
+------------------------------------------+------------------+----------------+
|Exchange differences on translation of | 2.3| 3.7|
|foreign operations | | |
+------------------------------------------+------------------+----------------+
|Actuarial (loss) / gain on retirement | (19.7)| 5.9|
|benefit obligations | | |
+------------------------------------------+------------------+----------------+
|Deferred tax movements | (0.1)| (0.5)|
+------------------------------------------+------------------+----------------+
|Exchange difference on defined benefit | (0.3)| (0.3)|
|schemes | | |
+------------------------------------------+------------------+----------------+
|Currency translation differences recycled | | |
|to Consolidated Income Statement on | -| (0.8)|
|disposal of vessel | | |
+------------------------------------------+------------------+----------------+
| | | |
+------------------------------------------+------------------+----------------+
|Other comprehensive (expense) / income for| (17.9)| 8.1|
|the year | | |
+------------------------------------------+------------------+----------------+
| | | |
+------------------------------------------+------------------+----------------+
|Total comprehensive income and expense for| | |
|the year: | | |
+------------------------------------------+------------------+----------------+
|all attributable to equity holders of the | 9.8| 47.1|
|parent | | |
+------------------------------------------+------------------+----------------+
| | | |
+------------------------------------------+------------------+----------------+
Consolidated Statement of Financial Position
as at 31 December 2011
+--------------------------------+-----+----------------+----------------+
| |Notes| 2011| 2010|
+--------------------------------+-----+----------------+----------------+
| | | EURm| EURm|
+--------------------------------+-----+----------------+----------------+
|Assets | | | |
+--------------------------------+-----+----------------+----------------+
|Non-current assets | | | |
+--------------------------------+-----+----------------+----------------+
|Property, plant and equipment | | 182.1| 194.0|
+--------------------------------+-----+----------------+----------------+
|Intangible assets | | 0.8| 0.9|
+--------------------------------+-----+----------------+----------------+
|Finance lease receivable | | 20.7| 23.4|
+--------------------------------+-----+----------------+----------------+
|Retirement benefit surplus | 8| 4.4| 4.0|
+--------------------------------+-----+----------------+----------------+
| | | 208.0| 222.3|
+--------------------------------+-----+----------------+----------------+
| | | | |
+--------------------------------+-----+----------------+----------------+
|Current assets | | | |
+--------------------------------+-----+----------------+----------------+
|Inventories | | 2.7| 1.9|
+--------------------------------+-----+----------------+----------------+
|Trade and other receivables | | 34.1| 33.6|
+--------------------------------+-----+----------------+----------------+
|Derivative financial instruments| | -| 0.1|
+--------------------------------+-----+----------------+----------------+
|Cash and bank balances | 6| 9.8| 17.2|
+--------------------------------+-----+----------------+----------------+
| | | 46.6| 52.8|
+--------------------------------+-----+----------------+----------------+
|Total assets | | 254.6| 275.1|
+--------------------------------+-----+----------------+----------------+
| | | | |
+--------------------------------+-----+----------------+----------------+
|Equity and liabilities | | | |
+--------------------------------+-----+----------------+----------------+
|Equity | | | |
+--------------------------------+-----+----------------+----------------+
|Share capital | | 16.7| 16.8|
+--------------------------------+-----+----------------+----------------+
|Share premium | | 52.7| 51.8|
+--------------------------------+-----+----------------+----------------+
|Other reserves | | (18.9)| (21.3)|
+--------------------------------+-----+----------------+----------------+
|Retained earnings | | 101.1| 130.7|
+--------------------------------+-----+----------------+----------------+
|Equity attributable to equity | | | |
+--------------------------------+-----+----------------+----------------+
|holders of the parent | | 151.6| 178.0|
+--------------------------------+-----+----------------+----------------+
| | | | |
+--------------------------------+-----+----------------+----------------+
|Non-current liabilities | | | |
+--------------------------------+-----+----------------+----------------+
|Borrowings | 6| 16.7| 22.8|
+--------------------------------+-----+----------------+----------------+
|Trade and other payables | | 0.9| 1.1|
+--------------------------------+-----+----------------+----------------+
|Deferred tax liabilities | | 4.4| 4.2|
+--------------------------------+-----+----------------+----------------+
|Provisions | | 0.3| 0.3|
+--------------------------------+-----+----------------+----------------+
|Deferred grant | | 0.8| 1.0|
+--------------------------------+-----+----------------+----------------+
|Retirement benefit obligation | 8| 36.9| 21.5|
+--------------------------------+-----+----------------+----------------+
| | | 60.0| 50.9|
+--------------------------------+-----+----------------+----------------+
| | | | |
+--------------------------------+-----+----------------+----------------+
|Current liabilities | | | |
+--------------------------------+-----+----------------+----------------+
|Borrowings | 6| 0.9| 0.7|
+--------------------------------+-----+----------------+----------------+
|Trade and other payables | | 38.9| 41.6|
+--------------------------------+-----+----------------+----------------+
|Current tax liabilities | | 2.8| 3.5|
+--------------------------------+-----+----------------+----------------+
|Provisions | | 0.3| 0.3|
+--------------------------------+-----+----------------+----------------+
|Deferred grant | | 0.1| 0.1|
+--------------------------------+-----+----------------+----------------+
| | | 43.0| 46.2|
+--------------------------------+-----+----------------+----------------+
|Total liabilities | | 103.0| 97.1|
+--------------------------------+-----+----------------+----------------+
|Total equity and liabilities | | 254.6| 275.1|
+--------------------------------+-----+----------------+----------------+
Consolidated Statement of Changes in Equity
for the year ended 31 December 2011
+---------------+-----------+---------------+------------+-----------+---------+
| | Share| Share| Other| Retained| |
+---------------+-----------+---------------+------------+-----------+---------+
| | Capital| Premium| Reserves| Earnings| Total|
+---------------+-----------+---------------+------------+-----------+---------+
| | EURm| EURm| EURm| EURm| EURm|
+---------------+-----------+---------------+------------+-----------+---------+
| | | | | | |
+---------------+-----------+---------------+------------+-----------+---------+
|Balance at 1 | | | | | |
|January 2011 | 16.8| 51.8| (21.3)| 130.7| 178.0|
+---------------+-----------+---------------+------------+-----------+---------+
| | | | | | |
+---------------+-----------+---------------+------------+-----------+---------+
|Profit for the | | | | | |
|year | -| -| -| 27.7| 27.7|
+---------------+-----------+---------------+------------+-----------+---------+
|Other | | | | | |
|comprehensive | | | | | |
|income | -| -| 2.2| (20.1)| (17.9)|
+---------------+-----------+---------------+------------+-----------+---------+
| | | | | | |
+---------------+-----------+---------------+------------+-----------+---------+
|Total | | | | | |
|comprehensive | | | | | |
+---------------+-----------+---------------+------------+-----------+---------+
|income for the | | | | | |
|year | -| -| 2.2| 7.6| 9.8|
+---------------+-----------+---------------+------------+-----------+---------+
| | | | | | |
+---------------+-----------+---------------+------------+-----------+---------+
|Employee share | | | | | |
|options expense| -| -| 0.1| -| 0.1|
+---------------+-----------+---------------+------------+-----------+---------+
|Share Issue | 0.1| 0.9| -| -| 1.0|
+---------------+-----------+---------------+------------+-----------+---------+
|Share buyback | (0.2)| -| 0.2| (4.0)| (4.0)|
+---------------+-----------+---------------+------------+-----------+---------+
|Dividends | -| -| -| (33.3)| (33.3)|
+---------------+-----------+---------------+------------+-----------+---------+
|Transferred to | | | | | |
|retained | | | | | |
|earnings on | | | | | |
|exercise of | | | | | |
|share options | -| -| (0.1)| 0.1| -|
+---------------+-----------+---------------+------------+-----------+---------+
| | | | | | |
| | (0.1)| 0.9| 2.4| (29.6)| (26.4)|
+---------------+-----------+---------------+------------+-----------+---------+
|Balance at 31 | | | | | |
|December 2011 | 16.7| 52.7| (18.9)| 101.1| 151.6|
+---------------+-----------+---------------+------------+-----------+---------+
| | | | | | |
+---------------+-----------+---------------+------------+-----------+---------+
|Analysed as | | | | | |
|follows: | | | | | |
+---------------+-----------+---------------+------------+-----------+---------+
|Share capital | | | | | 16.7|
+---------------+-----------+---------------+------------+-----------+---------+
|Share premium | | | | | 52.7|
+---------------+-----------+---------------+------------+-----------+---------+
|Other reserves | | | | | (18.9)|
+---------------+-----------+---------------+------------+-----------+---------+
|Retained | | | | | |
|earnings | | | | | 101.1|
+---------------+-----------+---------------+------------+-----------+---------+
| | | | | | 151.6|
+---------------+-----------+---------------+------------+-----------+---------+
Other Reserves comprise the following:
+--------------+------------+------------+-------------+----------------+------+
| | | Share| | | |
+--------------+------------+------------+-------------+----------------+------+
| | Capital| Options| Hedging| Translation| |
+--------------+------------+------------+-------------+----------------+------+
| | Reserve| Reserve| Reserve| Reserve| Total|
+--------------+------------+------------+-------------+----------------+------+
| | EURm| EURm| EURm| EURm| EURm|
+--------------+------------+------------+-------------+----------------+------+
| | | | | | |
+--------------+------------+------------+-------------+----------------+------+
|Balance at 1 | | | | | |
|January 2011 | 2.2| 1.5| 0.1| (25.1)|(21.3)|
+--------------+------------+------------+-------------+----------------+------+
| | | | | | |
+--------------+------------+------------+-------------+----------------+------+
|Total | | | | | |
|comprehensive | | | | | |
|(expense) / | | | | | |
|income | -| -| (0.1)| 2.3| 2.2|
+--------------+------------+------------+-------------+----------------+------+
| | | | | | |
+--------------+------------+------------+-------------+----------------+------+
|Employee share| | | | | |
|options | | | | | |
|expense | -| 0.1| -| -| 0.1|
+--------------+------------+------------+-------------+----------------+------+
|Share buyback | 0.2| -| -| -| 0.2|
+--------------+------------+------------+-------------+----------------+------+
|Transferred to| | | | | |
|retained | | | | | |
|earnings on | | | | | |
|exercise of | | | | | |
|share options | -| (0.1)| -| -| (0.1)|
+--------------+------------+------------+-------------+----------------+------+
| | | | | | |
| | 0.2| -| (0.1)| 2.3| 2.4|
+--------------+------------+------------+-------------+----------------+------+
| | | | | | |
+--------------+------------+------------+-------------+----------------+------+
|Balance at 31 | | | | | |
|December 2011 | 2.4| 1.5| -| (22.8)|(18.9)|
+--------------+------------+------------+-------------+----------------+------+
Consolidated Statement of Changes in Equity
for the year ended 31 December 2010
+----------------+-----------+--------------+------------+-----------+---------+
| | Share| Share| Other| Retained| |
+----------------+-----------+--------------+------------+-----------+---------+
| | Capital| Premium| Reserves| Earnings| Total|
+----------------+-----------+--------------+------------+-----------+---------+
| | EURm| EURm| EURm| EURm| EURm|
+----------------+-----------+--------------+------------+-----------+---------+
| | | | | | |
+----------------+-----------+--------------+------------+-----------+---------+
|Balance at 1 | | | | | |
|January 2010 | 16.6| 48.7| (23.9)| 110.9| 152.3|
+----------------+-----------+--------------+------------+-----------+---------+
| | | | | | |
+----------------+-----------+--------------+------------+-----------+---------+
|Profit for the | | | | | |
|year | -| -| -| 39.0| 39.0|
+----------------+-----------+--------------+------------+-----------+---------+
|Other | | | | | |
|comprehensive | | | | | |
|income | -| -| 3.0| 5.1| 8.1|
+----------------+-----------+--------------+------------+-----------+---------+
| | | | | | |
+----------------+-----------+--------------+------------+-----------+---------+
|Total | | | | | |
|comprehensive | | | | | |
+----------------+-----------+--------------+------------+-----------+---------+
|income for the | | | | | |
|year | -| -| 3.0| 44.1| 47.1|
+----------------+-----------+--------------+------------+-----------+---------+
| | | | | | |
+----------------+-----------+--------------+------------+-----------+---------+
|Employee share | | | | | |
|options expense | -| -| 0.3| -| 0.3|
+----------------+-----------+--------------+------------+-----------+---------+
|Share Issue | 0.2| 3.1| -| -| 3.3|
+----------------+-----------+--------------+------------+-----------+---------+
|Dividends | -| -| -| (25.0)| (25.0)|
+----------------+-----------+--------------+------------+-----------+---------+
|Transferred to | | | | | |
|retained | | | | | |
|earnings on | | | | | |
|exercise of | | | | | |
|share options | -| -| (0.7)| 0.7| -|
+----------------+-----------+--------------+------------+-----------+---------+
| | | | | | |
| | 0.2| 3.1| 2.6| 19.8| 25.7|
+----------------+-----------+--------------+------------+-----------+---------+
|Balance at 31 | | | | | |
|December 2010 | 16.8| 51.8| (21.3)| 130.7| 178.0|
+----------------+-----------+--------------+------------+-----------+---------+
| | | | | | |
+----------------+-----------+--------------+------------+-----------+---------+
|Analysed as | | | | | |
|follows: | | | | | |
+----------------+-----------+--------------+------------+-----------+---------+
|Share capital | | | | | 16.8|
+----------------+-----------+--------------+------------+-----------+---------+
|Share premium | | | | | 51.8|
+----------------+-----------+--------------+------------+-----------+---------+
|Other reserves | | | | | (21.3)|
+----------------+-----------+--------------+------------+-----------+---------+
|Retained | | | | | |
|earnings | | | | | 130.7|
+----------------+-----------+--------------+------------+-----------+---------+
| | | | | | 178.0|
+----------------+-----------+--------------+------------+-----------+---------+
Other Reserves comprise the following:
+--------------+------------+---------+-------------+------------------+-------+
| | | Share| | | |
+--------------+------------+---------+-------------+------------------+-------+
| | Capital| Options| Hedging| Translation| |
+--------------+------------+---------+-------------+------------------+-------+
| | Reserve| Reserve| Reserve| Reserve| Total|
+--------------+------------+---------+-------------+------------------+-------+
| | EURm| EURm| EURm| EURm| EURm|
+--------------+------------+---------+-------------+------------------+-------+
| | | | | | |
+--------------+------------+---------+-------------+------------------+-------+
|Balance at 1 | | | | | |
|January 2010 | 2.2| 1.9| -| (28.0)| (23.9)|
+--------------+------------+---------+-------------+------------------+-------+
| | | | | | |
+--------------+------------+---------+-------------+------------------+-------+
|Total | | | | | |
|comprehensive | | | | | |
|income | -| -| 0.1| 2.9| 3.0|
+--------------+------------+---------+-------------+------------------+-------+
| | | | | | |
+--------------+------------+---------+-------------+------------------+-------+
|Employee share| | | | | |
|options | | | | | |
|expense | -| 0.3| -| -| 0.3|
+--------------+------------+---------+-------------+------------------+-------+
|Transferred to| | | | | |
|retained | | | | | |
|earnings on | | | | | |
|exercise of | | | | | |
|share options | -| (0.7)| -| -| (0.7)|
+--------------+------------+---------+-------------+------------------+-------+
| | | | | | |
| | -| (0.4)| 0.1| 2.9| 2.6|
+--------------+------------+---------+-------------+------------------+-------+
| | | | | | |
+--------------+------------+---------+-------------+------------------+-------+
|Balance at 31 | | | | | |
|December 2010 | 2.2| 1.5| 0.1| (25.1)| (21.3)|
+--------------+------------+---------+-------------+------------------+-------+
Consolidated Statement of Cash Flows
for the year ended 31 December 2011
+--------------------------------------------+-----+------------+--------------+
| | | 2011| 2010|
+--------------------------------------------+-----+------------+--------------+
| |Notes| EURm| EURm|
+--------------------------------------------+-----+------------+--------------+
| | | | |
+--------------------------------------------+-----+------------+--------------+
|Net cash from operating activities | 7| 36.5| 42.8|
+--------------------------------------------+-----+------------+--------------+
| | | | |
+--------------------------------------------+-----+------------+--------------+
|Cash flow from investing activities | | | |
+--------------------------------------------+-----+------------+--------------+
|Interest received | | -| 0.1|
+--------------------------------------------+-----+------------+--------------+
|Proceeds on disposal of property, plant and | | 0.4| 0.5|
|equipment | | | |
+--------------------------------------------+-----+------------+--------------+
|Net proceeds on disposal of vessel | | -| 1.6|
+--------------------------------------------+-----+------------+--------------+
|Payment received on finance lease receivable| | 4.1| -|
+--------------------------------------------+-----+------------+--------------+
|Purchases of property, plant and equipment | | (5.9)| (6.9)|
+--------------------------------------------+-----+------------+--------------+
|Purchases of intangible assets | | (0.4)| (0.3)|
+--------------------------------------------+-----+------------+--------------+
|Net cash utilised by investing activities | | (1.8)| (5.0)|
+--------------------------------------------+-----+------------+--------------+
| | | | |
+--------------------------------------------+-----+------------+--------------+
|Cash flow from financing activities | | | |
+--------------------------------------------+-----+------------+--------------+
|Dividends paid to equity holders of the | | (33.3)| (25.0)|
|Company | | | |
+--------------------------------------------+-----+------------+--------------+
|Repayments of borrowings | | (27.8)| (17.4)|
+--------------------------------------------+-----+------------+--------------+
|Repayments of obligations under finance | | (0.7)| (0.8)|
|leases | | | |
+--------------------------------------------+-----+------------+--------------+
|Proceeds on issue of ordinary share capital | | 1.0| 3.3|
+--------------------------------------------+-----+------------+--------------+
|Share buyback | | (4.0)| -|
+--------------------------------------------+-----+------------+--------------+
|New bank loans raised | | 22.5| -|
+--------------------------------------------+-----+------------+--------------+
|Inception of new finance lease | | -| 2.3|
+--------------------------------------------+-----+------------+--------------+
|Net cash used in financing activities | | (42.3)| (37.6)|
+--------------------------------------------+-----+------------+--------------+
| | | | |
+--------------------------------------------+-----+------------+--------------+
|Net (decrease) / increase in cash and cash | | (7.6)| 0.2|
|equivalents | | | |
+--------------------------------------------+-----+------------+--------------+
| | | | |
+--------------------------------------------+-----+------------+--------------+
|Cash and cash equivalents at the beginning | | 17.2| 17.0|
|of the year | | | |
+--------------------------------------------+-----+------------+--------------+
| | | | |
+--------------------------------------------+-----+------------+--------------+
|Effect of foreign exchange rate changes | | (0.1)| -|
+--------------------------------------------+-----+------------+--------------+
| | | | |
+--------------------------------------------+-----+------------+--------------+
|Cash and cash equivalents at the end of the | 6| 9.5| 17.2|
|year | | | |
+--------------------------------------------+-----+------------+--------------+
| | | | |
+--------------------------------------------+-----+------------+--------------+
| | | | |
+--------------------------------------------+-----+------------+--------------+
Notes to the Preliminary Statement for the year ended 31 December 2011
1. Accounting policies
The Group did not adopt any new International Financial Reporting Standards
(IFRS) or Interpretations in the year that had a material impact on the Group's
Financial Statements.
2. Segmental information
The Board is deemed the chief operating decision maker within the Group. For
management purposes, the Group is currently organised into two operating
segments - Ferries and Container & Terminal.
+------------+----------------------+-----------------------+------------------------+
| | | | Net Assets (equity|
| | | | attributable to equity|
| | | | holders)|
| | Turnover| Profit Before Tax| |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Analysis by | | | | | | |
|class of | | | | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|business | 2011| 2010| 2011| 2010| 2011| 2010|
+------------+-----------+----------+-----------+-----------+------------+-----------+
| | EURm| EURm| EURm| EURm| EURm| EURm|
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Ferries and | 155.5| 153.7| 22.0| 24.5| 127.9| 157.6|
|Travel | | | | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Container | 119.1| 109.8| 6.9| 7.0| 31.5| 31.6|
|and Terminal| | | | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Intersegment| (1.3)| | | | | |
|Turnover | | (1.3)| -| -| -| -|
+------------+-----------+----------+-----------+-----------+------------+-----------+
| | 273.3| 262.2| 28.9| 31.5| 159.4| 189.2|
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Non-trading | -| -| -| 9.4| -| -|
|credit | | | | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Net interest| -| -| (0.7)| (0.8)| (7.8)| (6.3)|
|/ debt | | | | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Other | | | | | | (4.9)|
|liabilities | -| -| -| -| -| |
+------------+-----------+----------+-----------+-----------+------------+-----------+
| | 273.3| 262.2| 28.2| 40.1| 151.6| 178.0|
+------------+-----------+----------+-----------+-----------+------------+-----------+
| | | | | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Analysis by | 2011| 2010| | | | |
|origin | | | | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
| | EURm| EURm| | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Ireland | 125.0| 118.7| | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|United | 64.0| 60.7| | | | |
|Kingdom | | | | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Netherlands | 51.2| 54.8| | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Belgium | 17.2| 14.8| | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|France | 7.4| 9.2| | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
|Other | 8.5| | | | | |
| | | 4.0| | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
| | 273.3| 262.2| | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
| | | | | | | |
+------------+-----------+----------+-----------+-----------+------------+-----------+
3. Income tax expense
+---------------------------------+------------+------------+
| | 2011 | 2010 |
+---------------------------------+------------+------------+
| | EURm | EURm |
+---------------------------------+------------+------------+
| | | |
+---------------------------------+------------+------------+
| Current tax | 0.4 | 0.8 |
+---------------------------------+------------+------------+
| Deferred tax | 0.1 | 0.3 |
+---------------------------------+------------+------------+
| | | |
+---------------------------------+------------+------------+
| Income tax expense for the year | 0.5 | 1.1 |
+---------------------------------+------------+------------+
The Company and its Irish tax resident subsidiaries have elected to be taxed
under the Irish tonnage tax method. The Group's Dutch subsidiary has also
elected to be taxed under the Dutch tonnage tax system. Under the tonnage tax
method, taxable profit on eligible activities is calculated on a specified
notional profit per day related to the tonnage of the ships utilised.
In accordance with the IFRIC guidance on IAS 12, Income Taxes, the tonnage tax
charge is not considered an income tax expense and has been included in other
operating expenses in the consolidated Income Statement.
Domestic income tax is calculated at 12.5% of the estimated assessable profit
for the year for all activities which do not fall to be taxed under the tonnage
tax system. Taxation for other jurisdictions is calculated at the rates
prevailing in the relevant jurisdictions and range between 25.5% and 26% (2010:
25.5% and 28%).
The total expense for the year is reconciled to the accounting profit as
follows:
+--------------------------------------------------------+----------+----------+
| | 2011| 2010|
+--------------------------------------------------------+----------+----------+
| | EURm| EURm|
+--------------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------------+----------+----------+
|Profit before tax from continuing operations | 28.2| 40.1|
+--------------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------------+----------+----------+
|Tax at the domestic income tax rate of 12.5% (2010: | | |
|12.5%) | 3.5| 5.0|
+--------------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------------+----------+----------+
|Tax exempted earnings | -| (1.2)|
+--------------------------------------------------------+----------+----------+
|Net utilisation of tax losses | (0.4)| (0.4)|
+--------------------------------------------------------+----------+----------+
|Unrealised foreign exchange loss / (gain) | 0.2| (0.2)|
+--------------------------------------------------------+----------+----------+
|Difference in effective tax rates | 0.2| 0.3|
+--------------------------------------------------------+----------+----------+
|Effect of tonnage relief | (2.8)| (2.7)|
+--------------------------------------------------------+----------+----------+
|Other items | (0.2)| 0.3|
+--------------------------------------------------------+----------+----------+
| | | |
+--------------------------------------------------------+----------+----------+
|Income tax expense recognised in | | |
+--------------------------------------------------------+----------+----------+
|Consolidated Income Statement | 0.5| 1.1|
+--------------------------------------------------------+----------+----------+
4. Non-trading credit
During 2010 the Group completed the sale of the vessel Bilbao (formerly "Pride
of Bilbao") to St Peter Line of St Petersburg in Russia. The transaction is in
the form of a bareboat hire purchase agreement under which the vessel is
chartered by the Group to St Peter Line and is treated as a finance lease
terminating in 2016.
The vessel had been on charter to P&O European Ferries since 1993 and following
notification of termination of charter the vessel was redelivered to the Group
during 2010.
+------------------------------------------------------+------------+----------+
| | 2011| 2010|
+------------------------------------------------------+------------+----------+
| | EURm| EURm|
+------------------------------------------------------+------------+----------+
|Consideration | | |
+------------------------------------------------------+------------+----------+
|Consideration received in cash & cash equivalents | -| 3.0|
+------------------------------------------------------+------------+----------+
|Finance lease receivable | -| 27.5|
+------------------------------------------------------+------------+----------+
|Total consideration | -| 30.5|
+------------------------------------------------------+------------+----------+
| | | |
+------------------------------------------------------+------------+----------+
|Gain on disposal of vessel | | |
+------------------------------------------------------+------------+----------+
|Consideration | -| 30.5|
+------------------------------------------------------+------------+----------+
|Disposal costs | -| (3.1)|
+------------------------------------------------------+------------+----------+
|Net proceeds | -| 27.4|
+------------------------------------------------------+------------+----------+
|Carrying value of vessel disposed of | -| (18.8)|
+------------------------------------------------------+------------+----------+
|Currency translation differences recycled to the | | |
|Consolidated Income Statement on disposal of vessel | -| 0.8|
+------------------------------------------------------+------------+----------+
|Gain on disposal | -| 9.4|
+------------------------------------------------------+------------+----------+
In 2010 the gain on disposal of the vessel is included in the profit for the
year and is disclosed on a separate line in the Consolidated Income Statement.
5. Earnings per share - all from continuing operations
+-------------------------------------+----------+----------+
| | 2011 | 2010 |
+-------------------------------------+----------+----------+
| | cent | cent |
+-------------------------------------+----------+----------+
| | | |
+-------------------------------------+----------+----------+
| Basic earnings per share | 111.1 | 156.8 |
+-------------------------------------+----------+----------+
| | | |
+-------------------------------------+----------+----------+
| Diluted earnings per share | 110.4 | 155.7 |
+-------------------------------------+----------+----------+
| | | |
+-------------------------------------+----------+----------+
| Adjusted basic earnings per share | 109.9 | 121.0 |
+-------------------------------------+----------+----------+
| | | |
+-------------------------------------+----------+----------+
| Adjusted diluted earnings per share | 109.2 | 120.2 |
+-------------------------------------+----------+----------+
| | | |
+-------------------------------------+----------+----------+
The calculation of the basic and diluted earnings per share attributable to the
ordinary equity holders of the parent is based on the following data:
+----------------------------------------------------------+---------+---------+
| | 2011| 2010|
+----------------------------------------------------------+---------+---------+
|Earnings | EURm| EURm|
+----------------------------------------------------------+---------+---------+
| | | |
+----------------------------------------------------------+---------+---------+
|Earnings for the purposes of basic earnings per share - | | |
+----------------------------------------------------------+---------+---------+
|Profit for the year attributable to equity holders of the| | |
|parent | 27.7| 39.0|
+----------------------------------------------------------+---------+---------+
| | | |
+----------------------------------------------------------+---------+---------+
|Earnings for the purposes of diluted earnings per share | 27.7| 39.0|
+----------------------------------------------------------+---------+---------+
| | | |
+----------------------------------------------------------+---------+---------+
|Earnings for the purposes of basic earnings per share - | | |
+----------------------------------------------------------+---------+---------+
|Profit for the year attributable to equity holders of the| | |
|parent | 27.7| 39.0|
+----------------------------------------------------------+---------+---------+
|Effect of non-trading credit | -| (9.4)|
+----------------------------------------------------------+---------+---------+
|Effect of expected return on defined benefit pension| | |
|scheme assets | (12.0)| (11.5)|
+----------------------------------------------------------+---------+---------+
|Effect of interest on defined benefit pension scheme| | |
|liabilities | 11.7| 12.0|
+----------------------------------------------------------+---------+---------+
| | | |
+----------------------------------------------------------+---------+---------+
|Earnings for the purposes of adjusted earnings per share | 27.4| 30.1|
+----------------------------------------------------------+---------+---------+
+------------------------------------------------------------+--------+--------+
| | 2011| 2010|
+------------------------------------------------------------+--------+--------+
|Number of shares | '000| '000|
+------------------------------------------------------------+--------+--------+
|Weighted average number of ordinary shares for the purposes| | |
|of | | |
+------------------------------------------------------------+--------+--------+
|basic earnings per share | 24,932| 24,874|
+------------------------------------------------------------+--------+--------+
|Effect of dilutive potential ordinary shares: Share options | 156| 170|
+------------------------------------------------------------+--------+--------+
| | | |
+------------------------------------------------------------+--------+--------+
|Weighted average number of ordinary shares for the purposes| | |
|of | | |
+------------------------------------------------------------+--------+--------+
|diluted adjusted earnings per share | 25,088| 25,044|
+------------------------------------------------------------+--------+--------+
The denominator for the purposes of calculating both basic and diluted earnings
per share has been adjusted to reflect shares issued during the year and
excluded treasury shares.
The earnings used in both the adjusted basic and diluted earnings per share have
been adjusted to take into account the non-trading credit together with the net
figure for the expected return on defined benefit pension scheme assets and the
interest on defined pension scheme liabilities.
Management consider the adjusted earnings per share calculation to be a better
indication of the continuing underlying performance of the Group.
6. Net debt
+------------+-----------+-----------------+-----------+-------------+---------+
| | | Bank| | | |
| | Cash| Overdraft| Loans| Leases| Total|
+------------+-----------+-----------------+-----------+-------------+---------+
| | EURm| EURm| EURm| EURm| EURm|
+------------+-----------+-----------------+-----------+-------------+---------+
|At 1 January| | | | | |
|2011 | | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
|Current | 17.2| -| -| -| 17.2|
|assets | | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
|Creditors | -| -| -| (0.7)| (0.7)|
|due within | | | | | |
|one year | | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
|Creditors | -| -| (20.5)| (2.3)| (22.8)|
|due after | | | | | |
|one year | | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
| | 17.2| -| (20.5)| (3.0)| (6.3)|
+------------+-----------+-----------------+-----------+-------------+---------+
| | | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
|Cash flow | (7.3)| -| -| -| (7.3)|
+------------+-----------+-----------------+-----------+-------------+---------+
|Foreign | (0.1)| -| 0.2| -| 0.1|
|exchange | | | | | |
|rate changes| | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
|Drawdown | -| (0.3)| (22.5)| -| (22.8)|
+------------+-----------+-----------------+-----------+-------------+---------+
|Repayment | -| -| 27.8| 0.7| |
| | | | | | 28.5|
+------------+-----------+-----------------+-----------+-------------+---------+
| | (7.4)| (0.3)| 5.5| 0.7| |
| | | | | | (1.5)|
+------------+-----------+-----------------+-----------+-------------+---------+
| | | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
|At 31 | | | | | |
|December | | | | | |
|2011 | | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
|Current | 9.8| -| -| -| |
|assets | | | | | 9.8|
+------------+-----------+-----------------+-----------+-------------+---------+
|Creditors | -| (0.3)| -| (0.6)| |
|due within | | | | | (0.9)|
|one year | | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
|Creditors | -| -| (15.0)| (1.7)| (16.7)|
|due after | | | | | |
|one year | | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
| | | | | | |
+------------+-----------+-----------------+-----------+-------------+---------+
The loan repayments have been made under the Group's revolving loan facilities.
For the purposes of the statement of cash flows, cash and cash equivalents
include cash on hand and in banks net of outstanding bank overdrafts. Cash and
cash equivalents at the end of the reporting period as shown in the statement of
cash flows can be reconciled as follows:
+---------------------------+-----------+-------------+
| | 2011 | 2010 |
+---------------------------+-----------+-------------+
| | EURm | EURm |
+---------------------------+-----------+-------------+
| | | |
+---------------------------+-----------+-------------+
| Cash and bank balances | 9.8 | 17.2 |
+---------------------------+-----------+-------------+
| Bank overdraft | (0.3) | - |
+---------------------------+-----------+-------------+
| Cash and cash equivalents | 9.5 | 17.2 |
+---------------------------+-----------+-------------+
7. Net cash from operating activities
+--------------------------------------------+-----------------+---------------+
| | 2011| 2010|
+--------------------------------------------+-----------------+---------------+
| | EURm| EURm|
+--------------------------------------------+-----------------+---------------+
|Operating activities | | |
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
|Profit for the year | 27.7| 39.0|
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
|Adjustments for: | | |
+--------------------------------------------+-----------------+---------------+
|Finance costs (net) | 0.7| 0.8|
+--------------------------------------------+-----------------+---------------+
|Income tax expense | 0.5| 1.1|
+--------------------------------------------+-----------------+---------------+
|Retirement benefit obligations - current | 1.2| 1.7|
|service cost | | |
+--------------------------------------------+-----------------+---------------+
|Retirement benefit obligations - payments | (5.9)| (4.5)|
+--------------------------------------------+-----------------+---------------+
|Retirement benefit obligations - curtailment| -| (1.8)|
|gain | | |
+--------------------------------------------+-----------------+---------------+
|Depreciation of property, plant and | 19.9| 21.7|
|equipment | | |
+--------------------------------------------+-----------------+---------------+
|Amortisation of intangible assets | 0.5| 0.5|
+--------------------------------------------+-----------------+---------------+
|Amortisation of deferred income | (0.2)| (0.1)|
+--------------------------------------------+-----------------+---------------+
|Share-based payment expense | 0.1| 0.3|
+--------------------------------------------+-----------------+---------------+
|Gain on disposal of vessel | -| (9.4)|
+--------------------------------------------+-----------------+---------------+
|Gain on disposal of property, plant and | (0.3)| (0.4)|
|equipment | | |
+--------------------------------------------+-----------------+---------------+
|Decrease in other provisions | -| (0.4)|
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
|Operating cash flows before movements in | | |
|working capital | 44.2| 48.5|
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
|(Increase) / decrease in inventories | (0.8)| 0.1|
+--------------------------------------------+-----------------+---------------+
|Increase in receivables | (1.9)| (1.3)|
+--------------------------------------------+-----------------+---------------+
|Decrease in payables | (3.0)| (3.5)|
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
|Cash generated from operations | 38.5| 43.8|
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
|Income taxes paid | (1.0)| (0.6)|
+--------------------------------------------+-----------------+---------------+
|Interest paid | (1.0)| (0.4)|
+--------------------------------------------+-----------------+---------------+
| | | |
+--------------------------------------------+-----------------+---------------+
|Net cash from operating activities | 36.5| 42.8|
+--------------------------------------------+-----------------+---------------+
8. Retirement benefit schemes
The principal assumptions used for the purpose of the actuarial valuations were
as follows:
+--------------------------------------+-----------+---------------------------+
| | STERLING | EURO |
| |LIABILITIES| LIABILITIES |
+--------------------------------------+-----+-----+-------------+-------------+
| | 2011| 2010| 2011| 2010|
+--------------------------------------+-----+-----+-------------+-------------+
|Discount rate |4.90%|5.50%| 5.30%| 5.50%|
+--------------------------------------+-----+-----+-------------+-------------+
|Inflation rate |2.90%|3.60%| 2.00%| 2.00%|
+--------------------------------------+-----+-----+-------------+-------------+
|Rate of increase of pensions in | | | | |
|payment |2.65%|3.35%|1.80% - 2.00%|1.80% - 2.00%|
+--------------------------------------+-----+-----+-------------+-------------+
|Rate of general salary increases | | | | |
| |3.90%|4.60%| 3.00%|3.00% - 3.50%|
+--------------------------------------+-----+-----+-------------+-------------+
The long term expected rates of return at 31 December were as follows:
+----------+-----------------+---------------+
| | STERLING ASSETS | EURO ASSETS |
+----------+-------+---------+-------+-------+
| | 2011 | 2010 | 2011 | 2010 |
+----------+-------+---------+-------+-------+
| Equities | 7.00% | 7.80% | 7.30% | 7.40% |
+----------+-------+---------+-------+-------+
| Bonds | 3.00% | 3.60% | 4.30% | 4.40% |
+----------+-------+---------+-------+-------+
| Property | 5.50% | 6.80% | 6.30% | 6.40% |
+----------+-------+---------+-------+-------+
| Other | 2.60% | 3.80% | 2.50% | 2.50% |
+----------+-------+---------+-------+-------+
The average life expectancy used in all schemes at age 60 is as follows:
+------------------+-------------------------+-------------------------+
| | 2011 | 2010 |
+------------------+------------+------------+------------+------------+
| | Male | Female | Male | Female |
+------------------+------------+------------+------------+------------+
| | | | | |
+------------------+------------+------------+------------+------------+
| Current retirees | 23.8 years | 26.6 years | 23.8 years | 26.6 years |
+------------------+------------+------------+------------+------------+
| Future retirees | 27.2 years | 30.3 years | 27.2 years | 30.3 years |
+------------------+------------+------------+------------+------------+
| | | | | |
+------------------+------------+------------+------------+------------+
The amount recognised in the balance sheet in respect of the Group's defined
benefit schemes, is as follows:
+-----------------+------------------------------+-----------------------------+
| | SCHEMES WITH| SCHEMES WITH|
+-----------------+------------------------------+-----------------------------+
| | LIABILITIES IN| LIABILITIES IN|
+-----------------+------------------------------+-----------------------------+
| | STERLING| EURO|
+-----------------+--------------+---------------+-------------+---------------+
| | 2011| 2010| 2011| 2010|
+-----------------+--------------+---------------+-------------+---------------+
| | EURm| EURm| EURm| EURm|
+-----------------+--------------+---------------+-------------+---------------+
| | | | | |
+-----------------+--------------+---------------+-------------+---------------+
|Equities | 6.4| 6.9| 93.0| 103.2|
+-----------------+--------------+---------------+-------------+---------------+
|Bonds | 13.8| 12.0| 61.8| 60.9|
+-----------------+--------------+---------------+-------------+---------------+
|Property | 0.3| 0.3| 10.4| 11.1|
+-----------------+--------------+---------------+-------------+---------------+
|Other | 0.5| 0.2| 7.3| 5.7|
+-----------------+--------------+---------------+-------------+---------------+
|Market value of | 21.0| 19.4| 172.5| 180.9|
|scheme assets | | | | |
+-----------------+--------------+---------------+-------------+---------------+
|Present value of | | | | |
|scheme | | | | |
+-----------------+--------------+---------------+-------------+---------------+
|liabilities | (28.0)| (27.4)| (198.0)| (190.4)|
+-----------------+--------------+---------------+-------------+---------------+
|Deficit in | (7.0)| (8.0)| (25.5)| (9.5)|
|schemes | | | | |
+-----------------+--------------+---------------+-------------+---------------+
+----------------------------------+----------------+----------------+
| | 2011 | 2010 |
+----------------------------------+----------------+----------------+
| | EURm | EURm |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Opening deficit | (17.5) | (27.2) |
+----------------------------------+----------------+----------------+
| Current service cost | (1.2) | (1.7) |
+----------------------------------+----------------+----------------+
| Employer contributions paid | 5.9 | 4.5 |
+----------------------------------+----------------+----------------+
| Curtailment gain | - | 1.8 |
+----------------------------------+----------------+----------------+
| Other finance income / (expense) | 0.3 | (0.5) |
+----------------------------------+----------------+----------------+
| Actuarial (loss) / gain | (19.7) | 5.9 |
+----------------------------------+----------------+----------------+
| Other | (0.3) | (0.3) |
+----------------------------------+----------------+----------------+
| Net deficit | (32.5) | (17.5) |
+----------------------------------+----------------+----------------+
| | | |
+----------------------------------+----------------+----------------+
| Schemes in surplus | 4.4 | 4.0 |
+----------------------------------+----------------+----------------+
| Schemes in deficit | (36.9) | (21.5) |
+----------------------------------+----------------+----------------+
| Net deficit | (32.5) | (17.5) |
+----------------------------------+----------------+----------------+
9. Related party transactions
Transactions between the company and its subsidiaries, which are related
parties, have been eliminated on consolidation.
During the year ended 31 December 2011 there were no material transactions or
balances between Irish Continental Group plc and its key management personnel or
members of their close family, other than in respect of remuneration.
10. General information
The financial information in this preliminary announcement does not constitute
full statutory financial statements, a copy of which is required to be annexed
to the annual return to the Companies Registration Office. A copy of the
financial statements in respect of the financial year ended 31 December 2011
will be annexed to the annual return for 2012. The auditors have made a report,
without any qualification on their audit, of the consolidated financial
statements in respect of the financial year ended 31 December 2011 and the
Directors approved the consolidated financial statements in respect of the
financial year ended 31 December 2011 on 07 March 2012. A copy of the
consolidated financial statements in respect of the year ended 31 December 2010
has been annexed to the annual return for 2011 to the Companies Registration
Office.
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS). The consolidated financial
statements have also been prepared in accordance with IFRS as adopted by the
European Union and therefore the Group's financial statements comply with
Article 4 of the IAS Regulations. The consolidated financial statements have
also been prepared in accordance with the Companies Acts, 1963 to 2009, and the
Listing Rules of the Irish Stock Exchange and the UK Listing Authority.
The consolidated financial statements have been prepared on the historical cost
basis except for the revaluation of certain financial instruments.
11. Subsequent events
The Board is proposing a final dividend of 67 cent per ICG unit in respect of
the results for the year ended 31 December 2011.
There have been no other significant events, outside the ordinary course of
business, affecting the Group since 31 December 2011.
12. Board Approval
This preliminary announcement was approved by the Board of Directors of Irish
Continental Group plc on 07 March 2012.
13. Annual Report and Annual General Meeting
The Group's Annual Report and notice of Annual General Meeting, which will be
held on Wednesday 30 May 2012, will be notified to shareholders in April 2012.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(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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