TIDMICGC
Preliminary Statement of Results for the year ended 31 December 2014
FINANCIAL HIGHLIGHTS 2014 2013 Change %
Revenue EUR290.1m EUR264.7m +9.6%
EBITDA EUR50.5m EUR49.2m +2.6%
Operating profit (before non-trading items) EUR32.7m EUR30.0m +9.0%
Non-trading item: Curtailment gain less
related costs EUR28.7m -
Non-trading item: Gain on disposal of
subsidiary - EUR3.5m
EPS
EPS Basic 30.4c 14.6c +108.2%
EPS Adjusted 15.5c 13.8c +12.3%
Final dividend 7.035c 6.7c +5.0%
Net Debt EUR61.3m EUR93.4m -34.4%
CARRYINGS 2014 2013
'000 '000 Change %
Passengers 1,643.3 1,568.3 +4.8%
Cars 381.8 350.9 +8.8%
RORO Freight 247.9 205.3 +20.8%
Container Freight (teu*) 277.2 279.2 -0.7%
Port Lifts 187.0 177.3 +5.5%
*teu = twenty foot equivalent units
Key financial and performance highlights:
-- Revenue up 9.6%, adjusted EPS up 12.3%
-- Dividend increased by 5%, Net Debt down 34.4%
-- RORO freight volumes +20.8%, car carryings +8.8%
Commenting on the results Chairman John B McGuckian said,
"2014 was another successful year for the group with growth in revenue
of almost 10% to EUR290.1 million and earnings before non-trading items,
interest, tax, depreciation and amortisation (EBITDA) of EUR50.5 million,
up 2.6%, having absorbed the costs of the newly introduced vessel,
'Epsilon'. The strong momentum, evident in Q4 of 2014 has continued into
early 2015 giving us confidence that we can look forward in 2015, in the
absence of unforeseen developments and assuming continued lower oil
prices, to strong growth in revenue and earnings."
5 March 2015
Irish Continental Group (ICG) is a leading Irish based maritime
transport group. ICG carries passengers and cars, Roll on Roll off
(RORO) freight and container Lift on Lift off (LOLO) freight, on routes
between Ireland, the United Kingdom and Continental Europe.
PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014
2014 proved to be another successful year for the Group, with a positive
financial and operational performance, and a strengthening of the
Group's strategic positioning as the leading maritime transport provider
in the Republic of Ireland.
Revenue for the year grew 9.6% to EUR290.1 million with growth of 14.0%
in the Ferries Division and 2.6% in the Container & Terminal Division.
Operating costs (excluding depreciation) were 11.2% higher at EUR239.6
million as we absorbed the full year incremental cost of the additional
vessel, 'Epsilon', introduced in late 2013. EBITDA increased by 2.6%, to
EUR50.5 million. Operating profit (before non-trading items) was up 9.0%
at EUR32.7 million. The net finance charge was EUR4.7 million (2013:
EUR6.3 million). The taxation charge was EUR0.7 million compared with
EUR0.4 million in 2013. There was a non-trading item of EUR28.7 million
resulting from the curtailment gain recognised as a result of the
pension deficit funding agreement concluded during the year. Basic EPS
(including non-trading items) was 30.4 cent (2013: 14.6 cent), while
adjusted EPS (excluding non-trading items and the net interest cost on
defined benefit pension schemes) was 12.3% higher at 15.5 cent.
BUSINESS REVIEWS
FERRIES DIVISION
The chartered Ropax vessel, 'Epsilon', introduced to the fleet in late
2013 and, which is an enhancement of Irish Ferries service offering, has
provided 18 additional weekly sailings between Dublin and Holyhead as
well as a weekly round trip between Dublin and France. As a result,
Irish Ferries increased its sailings across its route network, from
4,381 in 2013 to 5,210 in 2014 (up 19%).
Revenue in the division was 14.0% higher than the previous year at
EUR184.3 million while operating profit (before non-trading items) was
EUR28.0 million compared with EUR24.9 million in 2013. The increase in
profit was due primarily to increased freight and passenger revenue
partially offset by additional operating costs of the newly introduced
'Epsilon'. While underlying fuel prices were lower in the year compared
with 2013, particularly in the last quarter, the operation of the
'Epsilon' meant that the division's total fuel cost was 13.7% higher
than the previous year at EUR40.7 million (2013: EUR35.8 million).
Revenue in the first half of the year increased 12.0% to EUR77.7 million
(2013: EUR69.4 million), while in the second half revenue increased
15.5%, to EUR106.6 million (2013: EUR92.3 million).
Car and Passenger markets
It is estimated that the overall car market, to and from the Republic of
Ireland, grew by approximately 3.6% in 2014 to 780,000 cars, while the
all-island market, i.e. including routes into Northern Ireland, is
estimated to have grown by 2.4%. Irish Ferries' car carryings performed
strongly during the year, at 381,800 cars, (2013: 350,900), up 8.8% on
the previous year. In the first half Irish Ferries grew its car volumes
by 5.9% while in the second half, which includes the busy summer holiday
season, the increase was higher, at 10.8%. The strong market and Irish
Ferries performances reflect the positive performance of the Irish
tourist industry. Initiatives by the tourist industry such as the Wild
Atlantic Way, have been instrumental in promoting 'own car' tourism
around the west and southern Irish coasts, and have helped broaden the
distribution of tourists around the island.
The total sea passenger market (i.e. comprising car, coach and foot
passengers) to and from the Republic of Ireland also grew by 2.6% in
2014, to a total of 3.2 million passengers, while the all-Island market
grew by 1.6%. Irish Ferries' passenger numbers carried were up 4.8% at
1.643 million (2013: 1.568 million). In the first half of the year,
Irish Ferries passenger volumes were up by 0.8% and in the second half
of the year, which is seasonally more significant, the growth in
passenger numbers was 7.8%.
Freight
The RORO freight market between the Republic of Ireland, and the U.K.
and France, which had resumed growth in 2013, continued to develop in
2014 with the total number of trucks and trailers up by around 6.7% to
approximately 838,000 units. On an all-island basis, the market was up
around 3.3% to approximately 1.6 million units.
Irish Ferries' carryings, at 247,900 freight units (2013: 205,300), were
up 20.8% in the year reflecting a strong performance by Irish Ferries
relative to the market (volumes were up 18.5% in the first half and
22.9% in the second half). The increased capacity provided by the
'Epsilon' was a major contributor to the growth as was the increased
frequency the vessel offers Irish Ferries' freight clients with a
freight departure on the key Dublin-Holyhead route every six hours
rather than the previous twelve hour frequency.
Chartering
The 'Kaitaki' remained on its 4 year charter to KiwiRail during the year,
operating in New Zealand.
In April 2014, the Group received EUR17.0 million in full settlement of
all amounts then due under the terms of the Bareboat Hire Purchase
Agreement relating to the sale of the vessel 'Bilbao' concluded in 2010.
Under this Agreement, the finance lease receivable was originally to
have been received in instalments from the Russian charterer, St. Peter
Line, over the period to September 2016. The funds were utilised towards
the reduction of net debt.
CONTAINER AND TERMINAL DIVISION
Revenue in the division increased to EUR107.0 million (2013: EUR104.3
million). The revenue is derived from container handling and related
ancillary revenues at our terminals and in Eucon from a mix of domestic
door-to-door, quay-to-quay and feeder services. With a flexible
chartered fleet and slot charter arrangements Eucon was able to adjust
capacity and thereby continue to meet the requirements of customers in a
cost effective and efficient manner. Operating profit in the division
was down 7.8% at EUR4.7 million (2013: EUR5.1 million) due mainly to
reduced feeder carryings. Fuel costs were down 5.4% to EUR12.3 million
(2013: EUR13.0 million), offset by reduced freight surcharges to
customers. Overall container volumes shipped were down 0.7% compared
with the previous year at 277,200 teu (2013: 279,200 teu). Feeder
volumes were down approximately 4% while domestic volumes were up
approximately 2%.
We ceased calling to Le Havre (Radicatel) in January 2015 in order to
concentrate our capacity on our Rotterdam and Antwerp services.
Containers handled at the Group's terminals in Dublin Ferryport
Terminals (DFT) and Belfast Container Terminal (BCT) were up 5.5% at
187,000 lifts (2013: 177,300 lifts). DFT's volumes were up 6.1%, while
BCT's lifts were up 2.4%.
On 1 January 2015, the EU Sulphur Directive came into force in many
parts of Northern Europe, including the North Sea and the English
Channel termed as Sulphur Emission Control Area's (SECA's). This reduced
the permissible level of sulphur in bunker fuel from 1.0% to 0.1% for
vessels in these SECA's requiring the vessels in the Eucon fleet to
consume, higher cost, low sulphur fuel. The increased costs from
consuming this low sulphur fuel are being passed onto the end user via
increased surcharges in order to maintain a viable freight network for
the benefit of Ireland's exporters and importers.
PENSIONS
During the year we completed negotiations on a recovery plan with the
trustee of the Group's largest defined benefit pension scheme. Under the
terms of the recovery plan, liabilities in the scheme have been reduced
by the removal of guaranteed inflation-linked pension increases for some
scheme members while the funding of the plan has been enhanced through a
payment plan which will see the Group contribute annual payments of
EUR1.5 million per annum (supplemented by EUR0.5 million per annum into
an escrow account) until 2023 or until the deficit is eliminated, if
earlier.
The changes agreed give rise to a net gain of EUR28.7 million which
includes a curtailment gain of EUR31.0 million less directly related
costs and has been accounted for as a non-trading credit.
FINANCE
EBITDA for the year was EUR50.5 million (2013: EUR49.2 million). There
was a net outflow of working capital of EUR2.2 million, due to an
increase in receivables of EUR4.8 million, due to higher freight revenue,
partially offset by a decrease in inventories of EUR0.7 million and an
increase in payables of EUR1.9 million. The Group made payments, in
excess of service costs, to the Group's pension funds of EUR3.9 million.
Cash generated from operations amounted to EUR44.4 million (2013:
EUR40.3 million).
Net interest paid was EUR3.5 million (2013: EUR4.3 million) while
taxation paid was EUR1.1 million (2013: EUR0.2 million).
Capital expenditure was EUR8.0 million (2013: EUR8.7 million) which
primarily included the annual refits of the vessels and new containers
to enhance the Eucon fleet of equipment.
Net debt at year end was EUR61.3 million (2013: EUR93.4 million) which
represents 1.2 times EBITDA (2013: 1.9 times EBITDA).
DIVIDEND
During the year the Group paid the final dividend for 2013 of 6.7 cent
per ICG Unit. The Group also paid an interim dividend for 2014 of 3.465
cent per ICG Unit, and the Board is proposing a final dividend of 7.035
cent per ICG Unit, payable in June 2015, making a total dividend for
2015 of 10.5 cent per ICG Unit, an increase of 5% on the prior year.
Subject to shareholder approval at the Annual General Meeting, the final
dividend will be paid on 19 June 2015 to shareholders on the register at
close of business on 5 June 2015. Irish dividend withholding tax will be
deducted where appropriate.
SUB-DIVISION OF ICG UNITS
During the year the Board received shareholder approval to implement a
10-for-1 sub-division of its ordinary shares and to redeem all of the
redeemable shares in issue. The purpose of these actions was to improve
the marketability and liquidity of ICG's Units. As a result the
comparative EPS, dividend per share and number of ordinary shares have
been restated.
CURRENT TRADING & OUTLOOK
Since our last update to the market, in the Interim Management Statement
of November 2014, trading conditions have continued to improve. Revenue
for the year was up 9.6% for the full year, versus 9.0% for the 9 months
to the end of September 2014 resulting in EBITDA for the final quarter
of 2014 up EUR1.9 million at EUR8.4 million. The improved momentum has
continued into the first two months of 2015. In the period to 28
February cars are up 16% on last year and passenger carryings are 3%
ahead of 2014. RORO freight volumes are up 14% on the same period in
2014 as we continue to benefit from the additional capacity of the
'Epsilon'. In the Container and Terminal Division containers carried are
down 1% while port lifts are up 6% year to date.
Lower world fuel prices have softened the impact of the introduction of
the low sulphur directive in the English Channel and are also providing
a stimulus to the transportation sector generally. As a result of these
factors, and bearing in mind the general improvement in the economic
outlook in our sphere of operations, we look forward, in the absence of
unforeseen circumstances and assuming continued low oil prices, to
strong growth in revenue and earnings for the financial year 2015.
John B. McGuckian
Chairman
Enquiries:
Eamonn Rothwell Chief Executive Officer +353 1 607 5628
Garry O'Dea Finance Director +353 1 607 5628
Consolidated Income Statement for the year ended 31 December 2014
Notes 2014 2013
EURm EURm
Revenue 290.1 264.7
Depreciation and amortisation (17.8) (19.2)
Employee benefits expense (18.9) (17.8)
Other operating expenses (220.7) (197.7)
32.7 30.0
Non-trading items 4 28.7 -
Operating profit 61.4 30.0
Investment revenue 0.1 0.2
Finance costs (4.8) (6.5)
Profit before tax 56.7 23.7
Income tax expense 3 (0.7) (0.4)
Profit from continuing operations 56.0 23.3
Discontinued operations
Non-trading items 4 - 3.5
Total discontinued operations - 3.5
Profit for the year: all attributable
to equity holders of the parent 56.0 26.8
Earnings per share - expressed in EUR cent per share
Basic 5 30.4c 14.6c
Diluted 5 30.1c 14.5c
Consolidated Statement of Comprehensive Income for the year ended 31
December 2014
2014 2013
EURm EURm
Profit for the year 56.0 26.8
Items that may be reclassified subsequently to profit
or loss:
Cash flow hedges:
- Fair value movements arising during the year (1.0) 0.2
-Transfer to Consolidated Income Statement - net settlement
of cash flow hedge 0.3 0.4
Exchange differences on translation of foreign operations 0.3 -
Exchange difference on defined benefit pension schemes 0.1 (0.2)
Items that will not be reclassified subsequently to
profit or loss:
Actuarial (loss) / gain on retirement benefit obligations (21.2) 14.3
Deferred tax movements - (0.1)
Other comprehensive (expense) / income for the year (21.5) 14.6
Total comprehensive income for the year:
all attributable to equity holders of the parent 34.5 41.4
Consolidated Statement of Financial Position as at 31 December 2014
Notes 2014 2013
EURm EURm
Assets
Non-current assets
Property, plant and equipment 154.0 163.5
Intangible assets 0.7 0.8
Finance lease receivable - 14.7
Retirement benefit surplus 8 5.4 4.7
160.1 183.7
Current assets
Inventories 2.0 2.7
Trade and other receivables 34.7 33.0
Cash and bank balances 6 22.7 18.5
59.4 54.2
Total assets 219.5 237.9
Equity and liabilities
Equity
Share capital 12.0 12.0
Share premium 9.7 8.5
Other reserves (8.0) (9.3)
Retained earnings 47.6 31.0
Equity attributable to equity
holders of the parent 61.3 42.2
Non-current liabilities
Borrowings 6 66.7 95.2
Trade and other payables - 0.6
Deferred tax liabilities 3.8 3.9
Provisions 0.5 0.4
Deferred grant 0.5 0.6
Retirement benefit obligation 8 29.5 41.4
101.0 142.1
Current liabilities
Borrowings 6 17.3 16.7
Trade and other payables 38.4 35.9
Derivative financial instruments 0.7 -
Current income tax liabilities 0.2 0.5
Provisions 0.5 0.4
Deferred grant 0.1 0.1
57.2 53.6
Total liabilities 158.2 195.7
Total equity and liabilities 219.5 237.9
Consolidated Statement of Changes in Equity for the year ended 31
December 2014
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2014 12.0 8.5 (9.3) 31.0 42.2
Profit for the year - - - 56.0 56.0
Other comprehensive expense - - (0.4) (21.1) (21.5)
Total comprehensive (expense) / income for the year - - (0.4) 34.9 34.5
Employee share-based payment expense - - 2.2 - 2.2
Share issue - 1.2 - - 1.2
Dividends - - - (18.8) (18.8)
Transferred to retained earnings on exercise of share
options - - (0.5) 0.5 -
- 1.2 1.3 16.6 19.1
Balance at 31 December 2014 12.0 9.7 (8.0) 47.6 61.3
Analysed as follows:
Share capital 12.0
Share premium 9.7
Other reserves (8.0)
Retained earnings 47.6
61.3
Other Reserves comprise the following:
Share
Capital Options Hedging Translation
Reserve Reserve Reserve Reserve Total
EURm EURm EURm EURm EURm
Balance at 1 January 2014 7.3 3.1 - (19.7) (9.3)
Total comprehensive (expense) / income - - (0.7) 0.3 (0.4)
Employee share-based payment expense - 2.2 - - 2.2
Transferred to retained earnings on exercise of share
options - (0.5) - - (0.5)
- 1.7 (0.7) 0.3 1.3
Balance at 31 December 2014 7.3 4.8 (0.7) (19.4) (8.0)
Consolidated Statement of Changes in Equity for the year ended 31
December 2013
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2013 11.9 7.5 (9.6) 8.2 18.0
Profit for the year - - - 26.8 26.8
Other comprehensive income - - 0.6 14.0 14.6
Total comprehensive income for the year - - 0.6 40.8 41.4
Employee share-based payment expense - - 0.1 - 0.1
Share issue 0.1 1.0 - - 1.1
Dividends - - - (18.4) (18.4)
Transferred to retained earnings on exercise of share
options - - (0.4) 0.4 -
0.1 1.0 0.3 22.8 24.2
Balance at 31 December 2013 12.0 8.5 (9.3) 31.0 42.2
Analysed as follows:
Share capital 12.0
Share premium 8.5
Other reserves (9.3)
Retained earnings 31.0
42.2
Other Reserves comprise the following:
Share
Capital Options Hedging Translation
Reserve Reserve Reserve Reserve Total
EURm EURm EURm EURm EURm
Balance at 1 January 2013 7.3 3.4 (0.6) (19.7) (9.6)
Total comprehensive income - - 0.6 - 0.6
Employee share-based payment expense - 0.1 - - 0.1
Transferred to retained earnings on exercise of share
options - (0.4) - - (0.4)
- (0.3) 0.6 - 0.3
Balance at 31 December 2013 7.3 3.1 - (19.7) (9.3)
Consolidated Statement of Cash Flows for the year ended 31 December 2014
2014 2013
Notes EURm EURm
Net cash inflow from operating activities 7 39.7 35.6
Cash flow from investing activities
Interest received 0.1 0.2
Proceeds on disposal of property, plant and equipment 0.1 0.4
Net proceeds received on disposal of subsidiary - 9.4
Payment received on finance lease receivable 17.8 2.9
Purchases of property, plant and equipment (7.7) (8.4)
Purchases of intangible assets (0.3) (0.3)
Net cash inflow from investing activities 10.0 4.2
Cash flow from financing activities
Dividends paid to equity holders of the Company (18.8) (18.4)
Repayments of borrowings (39.6) (31.9)
Repayments of obligations under finance leases (0.8) (0.7)
Proceeds on issue of ordinary share capital 1.2 1.1
New bank loans raised 7.5 5.0
Proceeds from sale and leaseback 1.6 1.2
Net cash used in financing activities (48.9) (43.7)
Net increase / (decrease) in cash and cash
equivalents 0.8 (3.9)
Cash and cash equivalents at the beginning of the
year 18.5 22.3
Effect of foreign exchange rate changes 0.1 0.1
Cash and cash equivalents at the end of the year 6 19.4 18.5
Notes to the Preliminary Statement for the year ended 31 December 2014
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.
Restatement of Earnings per share, dividend per share and number of
ordinary shares
The comparative information for the earnings per share calculation has
been restated to reflect the 10-for-1 sub-division of ICG Units which
occurred on 9 June 2014. The comparative dividend per ICG Unit, numbers
of ordinary shares information and all other share / Unit disclosures
have also been restated.
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
Revenue Profit Before Tax attributable to equity holders)
Analysis of
results 2014 2013 2014 2013 2014 2013
EURm EURm EURm EURm EURm EURm
Ferries 184.3 161.7 28.0 24.9 97.8 110.3
Container and
Terminal 107.0 104.3 4.7 5.1 24.8 25.3
Intersegment
Revenue (1.2) (1.3) - - - -
Total 290.1 264.7 32.7 30.0 122.6 135.6
Non-trading
items - - 28.7 3.5 - -
Net interest
/ debt - - (4.7) (6.3) (61.3) (93.4)
Other
liabilities - - - - - -
290.1 264.7 56.7 27.2 61.3 42.2
Analysis by
origin of
booking 2014 2013
EURm EURm
Ireland 147.5 131.0
United
Kingdom 52.8 46.1
Netherlands 48.3 45.9
Belgium 24.6 25.0
France 7.1 7.4
Other 9.8 9.3
Total 290.1 264.7
3. Income tax expense
2014 2013
EURm EURm
Current tax 0.8 0.6
Deferred tax (0.1) (0.2)
Income tax expense for the year 0.7 0.4
The Company and its Irish tax resident subsidiaries have elected to be
taxed under the Irish tonnage tax method. 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 21% and 23% (2013: 23% and 24%).
The total expense for the year is reconciled to the accounting profit as
follows:
2014 2013
EURm EURm
Profit before tax 56.7 23.7
Gain on disposal of discontinued operations - 3.5
56.7 27.2
Tax at the domestic income tax rate of 12.5% (2013:
12.5%) 7.1 3.4
Effect of tonnage relief (1.9) (1.8)
Non-taxable curtailment gain (3.9) -
Tax exempted earnings - (0.4)
Net utilisation of tax losses (0.1) (0.2)
Difference in effective tax rates 0.1 0.1
Other items (0.6) (0.7)
Income tax expense recognised in the
Consolidated Income Statement 0.7 0.4
4. Non-trading items
2014 2013
EURm EURm
Continuing operations
Curtailment gain arising from pension deficit funding
agreement
less related costs 28.7 -
Discontinued operations
Gain on the disposal of discontinued operations - 3.5
Total non-trading items 28.7 3.5
During the year the Group concluded a deficit funding agreement with the
trustee of the Group's main defined benefit pension scheme, the Irish
Ferries Limited Pension Scheme. Under the terms of the agreement,
liabilities of the scheme will be reduced by the replacement of
guaranteed pension increases for some members of the scheme with
discretionary pension increases linked to the funding of the scheme. The
reduction in liability arising has been estimated at EUR31.0 million by
the scheme actuary. This curtailment gain of EUR31.0 million less EUR2.0
million in directly related share options expenses and EUR0.3 million of
directly related professional fees has been included as a non-trading
item in the Consolidated Income Statement. The share-based payment
expense directly attributable to the gain arises because the curtailment
gain resulted in the EPS performance criteria for the vesting of the
options being met.
In 2013, a gain of EUR3.5 million on disposal of a former subsidiary was
recognised, following the receipt of all deferred contingent
consideration due under the Sale Agreement, which had been dependent
upon the achievement of certain conditions. In addition there was a
settlement for working capital less costs of disposal incurred.
5. Earnings per share
2014 2013*
Number of shares '000 '000
Weighted average number of ordinary shares for the
purposes of
basic earnings per share 184,357 183,650
Effect of dilutive potential ordinary shares: Share
options 1,438 970
Weighted average number of ordinary shares for the
purposes of
diluted adjusted earnings per share 185,795 184,620
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 excludes 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 items
together with the net interest on defined benefit pension schemes.
Profit attributable to ordinary shareholders
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:
2014 2013
Earnings EURm EURm
Earnings for the purposes of basic earnings per share
-
Profit for the year attributable to equity holders
of the parent 56.0 26.8
Earnings for the purposes of diluted earnings per
share 56.0 26.8
Earnings for the purposes of basic earnings per share
-
Profit for the year attributable to equity holders
of the parent 56.0 26.8
Effect of non-trading items (28.7) (3.5)
Net interest cost on defined benefit pension schemes 1.2 2.0
Earnings for the purposes of adjusted earnings per
share 28.5 25.3
2014 2013*
Cent Cent
Basic earnings per share 30.4 14.6
Diluted earnings per share 30.1 14.5
Adjusted basic earnings per share 15.5 13.8
Adjusted diluted earnings per share 15.3 13.7
* The comparative information has been adjusted for the 10-for-1
sub-division of ICG Units which became effective on 9 June 2014.
6. Net debt
Bank
Cash Overdraft Loans Leases Total
EURm EURm EURm EURm EURm
At 1 January 2014
Current assets 18.5 - - - 18.5
Creditors due within one year - - (16.0) (0.7) (16.7)
Creditors due after one year - - (92.3) (2.9) (95.2)
18.5 - (108.3) (3.6) (93.4)
Cash flow 4.2 - - - 4.2
Drawdown - (3.3) (7.5) (1.6) (12.4)
Repayment - - 39.6 0.8 40.4
Foreign exchange rate changes - - - (0.1) (0.1)
4.2 (3.3) 32.1 (0.9) 32.1
At 31 December 2014
Current assets 22.7 - - - 22.7
Creditors due within one year - (3.3) (13.0) (1.0) (17.3)
Creditors due after one year - - (63.2) (3.5) (66.7)
22.7 (3.3) (76.2) (4.5) (61.3)
The loan drawdown and repayments have been made under the Group's 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:
2014 2013
EURm EURm
Cash and bank balances 22.7 18.5
Bank overdraft (3.3) -
Cash and cash equivalents 19.4 18.5
7. Net cash from operating activities
2014 2013
EURm EURm
Operating activities
Profit for the year 56.0 26.8
Adjustments for:
Finance costs (net) 4.7 6.3
Income tax expense 0.7 0.4
Retirement benefit obligations - current service cost 1.9 1.9
Retirement benefit obligations - payments (4.0) (5.6)
Retirement benefit obligations - past service credit (1.8) (2.1)
Depreciation of property, plant and equipment 17.5 19.0
Amortisation of intangible assets 0.4 0.3
Amortisation of deferred income (0.1) (0.1)
Share-based payment expense 0.2 0.1
Non-trading item: Gain on disposal of subsidiary - (3.5)
Non-trading item: Net gain on pension deficit agreement (28.7) -
Non-trading item: Fees related to pension deficit
agreement (0.3) -
Gain on disposal of property, plant and equipment (0.1) (0.4)
Increase in other provisions 0.2 -
Operating cash flows before movements in working capital 46.6 43.1
Decrease in inventories 0.7 -
Increase in receivables (4.8) (1.5)
Increase / (decrease) in payables 1.9 (1.3)
Cash generated from operations 44.4 40.3
Income taxes paid (1.1) (0.2)
Interest paid (3.6) (4.5)
Net cash generated from operating activities 39.7 35.6
8. Retirement benefit schemes
The principal assumptions used for the purpose of the actuarial
valuations were as follows:
STERLING EURO
LIABILITIES LIABILITIES
2014 2013 2014 2013
Discount rate 3.65% 4.35% 2.00% 3.60%
Inflation rate 3.10% 3.55% 1.50% 2.00%
Rate of increase of
pensions in payment 2.90% 3.20% 0.60% - 0.70% 1.80% - 2.00%
Rate of general salary
increases 1.44% 4.05% 1.00% 3.00%
The average life expectancy used in all schemes at age 60 is as follows:
2014 2013
Male Female Male Female
Current retirees 24.3 years 27.2 years 24.3 years 27.2 years
Future retirees 27.5 years 29.8 years 27.3 years 29.6 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
2014 2013 2014 2013
EURm EURm EURm EURm
Equities 8.9 8.4 131.9 121.6
Bonds 15.9 13.9 81.8 73.3
Property 0.3 0.3 14.2 11.4
Other 0.7 1.0 2.8 0.6
Market value of scheme assets 25.8 23.6 230.7 206.9
Present value of scheme liabilities (22.6) (22.0) (258.0) (245.2)
Surplus / (deficit) in schemes 3.2 1.6 (27.3) (38.3)
The movement during the year is reconciled as follows:
2014 2013
EURm EURm
Opening net deficit (36.7) (54.6)
Current service cost (1.9) (1.9)
Employer contributions paid 4.0 5.6
Past service credit 1.8 2.1
Curtailment gain (note 4) 31.0 -
Net interest cost (1.2) (2.0)
Actuarial (loss) / gain (21.2) 14.3
Other 0.1 (0.2)
Closing net deficit (24.1) (36.7)
Schemes in surplus 5.4 4.7
Schemes in deficit (29.5) (41.4)
Net deficit (24.1) (36.7)
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 2014 the material transactions between
Irish Continental Group plc and its key management personnel, were; the
remuneration of employees and Directors, the participation in Group
dividends on the same terms available to shareholders generally, and the
provision of professional services at arm's length basis.
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 2014 will be annexed to the annual
return for 2015. 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 2014 and the
Directors approved the consolidated financial statements in respect of
the financial year ended 31 December 2014 on 4 March 2015. A copy of the
consolidated financial statements in respect of the year ended 31
December 2013 has been annexed to the annual return for 2014 filed at
the Companies Registration Office.
The consolidated financial statements have 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 2013, 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 7.035 cent per ICG unit in
respect of the results for the year ended 31 December 2014.
There have been no other significant events, outside the ordinary course
of business, affecting the Group since 31 December 2014.
12. Board Approval
This preliminary announcement was approved by the Board of Directors of
Irish Continental Group plc. on 4 March 2015.
13. Annual Report and Annual General Meeting
The Group's Annual Report and notice of Annual General Meeting, which
will be held on Wednesday 20 May 2015, will be notified to shareholders
in April 2015.
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Irish Continental Group plc via Globenewswire
HUG#1899564
www.icg.ie
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