Irish Continental Trading Statement

TIDMICGC

Irish Continental Group plc ("ICG" or the "Group")
Trading update
The current level of uncertainty and the introduction of travel
restrictions across the EU because of the COVID-19 pandemic has
led to a significant reduction in current passenger traffic and
forward bookings for what is normally the peak Summer passenger
season for ICG's Irish Ferries services.
It is very difficult to estimate the full year financial impact
on the Group, as the reduction in passenger revenue will be material.
In the period from January 1(St) to the 6(Th) of June this year
car volumes are down 62% with total passenger volumes down 60%.
The severity of this reduction in passenger revenue is dependent
on the duration and nature of travel restrictions particularly
over the peak Summer season.
Retention of the Common Travel Area (CTA) between Britain and
Ireland is of major benefit to the tourism and hospitality sectors
in Ireland. The current Irish Government position, of asking people
from Britain who visit Ireland to self-isolate for 2 weeks, is
not consistent with that of the British Government who do not
require people travelling to Britain from Ireland to self-isolate.
In addition, there is nothing to stop people from Britain visiting
Ireland by transiting via Northern Ireland without the requirement
to self-isolate which is clearly anomalous. We have written to
the Irish Government on this issue.
With respect to our Irish Ferries ro-ro freight business and our
Container & Terminal Division, the impact of COVID-19 has been
more limited. Year to date up to June 6(th) ro-ro volumes are
down 4%, container volumes are down 13% with container lifts on
our terminals down 14%.
COVID-19 represents a unique set of challenges across our society.
The key challenge for ICG is maintaining our part in the critical
supply chains on and off the Island of Ireland.
Our services provide a vital lifeline service to our Island and
beyond for food, drugs, medical supplies and in more recent times
a high level of e-commerce goods. In the absence of airline capacity,
we also offer a vital lifeline service for essential passenger
travel, including returning medical and caring volunteers and
technicians to fix vital equipment in our hospitals and care centres.
We also provide an ability for our citizens to repatriate, where
they must do so, to deal with emergencies at home. For these reasons
we have and will maintain services on all our routes.
With the cessation of passenger business during the COVID-19 outbreak
some ferry routes out of Ireland which are critically important
in providing essential services became cash negative. Recognising
the need to help certain routes remain open the Irish Government
adopted a Public Services Obligation (PSO) model covering the
shortfall between variable revenue and certain variable costs.
This was not an approach that we recommended as we believe this
model was liable to create distortions in the marketplace and
could be open to legal challenge. For both these reasons we decided
not to participate in this PSO model, but we committed, without
any Government support, to continue operating our lossmaking routes
which provide a vital lifeline service to our Island.
We will continue to work closely with all relevant authorities
and closely monitor the developing situation. The Group, where
appropriate, has availed of Governments' staff retention support
schemes across Europe.
We would like to take this opportunity to thank the crews on our
ships, our terminal and office staff, our passengers who have
travelled for essential reasons, our freight customers and their
drivers who all continue to work in very difficult circumstances.
ICG has terminated its contract with the German shipbuilder FSG,
who were contracted to build a new vessel for Irish Ferries. This
follows the yard making an application through the German courts
system to be placed in debtor in possession management under the
oversight of an Insolvency Monitor. As part of the original contract
with the yard, ICG paid a deposit on this vessel for 20% (EUR33
million) of the purchase price with the remaining 80% due on delivery
of the ship. This deposit was protected by third party guarantees
and has now been returned to ICG.
The Group is in a strong financial position to weather this COVID-19
storm and we would refer investors to our cash and undrawn credit
facilities position at 31(st) December 2019.
END.
Dublin
11(th) June 2020
_________________________________________________________________________________
Enquiries:
Eamonn Rothwell, Chief Executive Officer Tel: +353 1 607 5628
Email: info@icg.ie
David Ledwidge, Chief Financial Officer Tel: +353 1 607 5628 Email:
info@icg.ie
_________________________________________________________________________________
Media enquiries:
Q4 Public Relations Tel: +353 1 475 1444 Email: press@q4pr.ie
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June 11, 2020 02:00 ET (06:00 GMT)

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