TIDMIRSH
Thursday 26 August 2021
HALF-YEARLY FINANCIAL REPORT
for the half year ended 30 June 2021
Irish Continental Group plc (ICG), the leading Irish-based
maritime transport group, reports its financial performance for the
half year ended 30 June 2021.
This half-yearly financial report references alternative
performance measures (APMs) which are not defined under
International Financial Reporting Standards and which are explained
at page 22.
Highlights
Financial summary
HY 2021* HY 2020** Change %
Revenue EUR141.6m EUR130.8m 8.3%
EBITDA (pre non-trading items) EUR12.7m EUR10.0m 27.0%
EBIT (pre non-trading items) EUR(10.3)m EUR(9.5)m -8.4%
Basic earnings per share (6.8)c (6.2)c -9.7%
Adjusted earnings per share (6.8)c (6.2)c -9.7%
Interim dividend nil nil -
Net debt EUR112.1m EUR103.3m -8.5%
Net debt (pre-IFRS 16) EUR61.7m EUR71.5m 13.7%
---------- --------- --------
* HY 2021: Half Year up to 30 June 2021, ** HY 2020: Half Year
up to 30 June 2020
Volume movements
HY 2021 HY 2020
'000 '000 Change %
Cars 29.8 56.6 -47.3%
RoRo freight 126.7 149.4 -15.2%
Containers shipped (teu*) 176.7 155.7 13.5%
Port lifts 165.5 141.0 17.4%
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*teu: twenty foot equivalent units
The HY 2021 result is reported against the background of
continuing restrictions on non-essential passenger travel first
imposed in March 2020 across the EU because of the Covid-19
pandemic. Notwithstanding, the Group has continued to focus on its
strategic development and has retained a strong liquidity
position.
Key highlights in HY 2021 include;
-- Group revenue generated totalling EUR141.6 million, EUR10.8 million more
than HY 2020.
-- RoRo freight travel patterns affected by new customs requirements
following the exit of the UK from the EU.
-- EBIT generated was a loss of EUR10.3 million, EUR0.8 million worse than
HY 2020.
-- EBITDA generated of EUR12.7 million, EUR2.7 million more than HY 2020.
-- Gross cash balances of EUR131.1 million (31 December 2020: EUR150.4
million).
-- Net debt at EUR112.1 million, EUR23.6 million higher than at the
beginning of the year.
-- No interim dividend declared (2020: nil).
-- Commencement of a new ferry service between Dover (UK) and Calais
(France) on 29 June.
-- Further investment in environmentally friendly port equipment at Dublin
Ferryport Terminals and increased capacity from 2022.
Commenting on the results, Chairman John B. McGuckian noted;
The continuation of the Covid-19 pandemic in the first half of
the year continued to create an exceptionally challenging trading
environment for the Group. Travel restrictions in place in the
first half of the year, have materially reduced our passenger
business. Despite this, as per the prior year the Group has
maintained services on all of its shipping routes maintaining
critical logistical links to the island of Ireland. These services
have facilitated not only key logistical links to Britain and the
European Union, but have facilitated passenger travel for essential
purposes allowing for the movement of critical staff and the
repatriation of citizens. The Group welcomes the introduction of
the EU Digital Covid Certificate and the easing of restrictions on
non-essential passenger travel, however, the timing of its
introduction limits the benefits for our key summer season.
On 31 December 2020, the UK and EU ended the post Brexit
transition period. While trade flows have decreased between Ireland
and Britain, our flexible fleet has allowed us to adjust capacity
on our direct continental RoRo and container shipping services.
While this has led to a reduction in RoRo volumes, the change in
yield mix has resulted in increased RoRo revenues. This increase in
revenue is particularly encouraging as it is against the backdrop
of both the Covid-19 pandemic and the introduction of customs
requirements on the Irish Sea.
Still of concern to the Group is the lack of implementation of
appropriate checks on goods arriving into Northern Ireland from
Britain, which are required under the Northern Ireland Protocol. To
the extent that goods are destined for the Republic of Ireland,
this is causing a distortion in the level playing field as goods
that arrive directly into the Republic of Ireland ports from
Britain are being checked on arrival.
On 26 March 2021, ICG subsidiary Irish Ferries announced that it
would commence a new ferry service on the Dover -- Calais route.
This new service launched on 29 June 2021, with the introduction of
the Isle of Inishmore on the route.
I would like to take this opportunity on behalf of the Group to
thank all of our colleagues who have again made the retention of
all our services possible. Of particular importance has been the
continued dedication of our front line colleagues who have faced
into a second year of this pandemic and the restrictions and
difficulties it has created. Again, it is the dedication of all our
staff in the ports and terminals and the crew of our ships that
have kept our ships sailing, our terminals operating and our supply
lines open.
Enquiries:
-------------------------------------
Eamonn Rothwell, Chief Executive Tel: +353 1 607 5628 Email:
Officer mailto:info@icg.ie info@icg.ie
---------------------------------------
David Ledwidge, Chief Financial Tel: +353 1 607 5628 Email:
Officer mailto:info@icg.ie info@icg.ie
---------------------------------------
Media enquiries:
Q4 Public Relations Tel: +353 1 475 1444 Email:
press@q4pr.ie
Results
Financial Highlights
HY 2021 HY 2020 Change % FY 2020*
Revenue EUR141.6m EUR130.8m 8.3% EUR277.1m
EBITDA (pre non-trading items) EUR12.7m EUR10.0m 27.0% EUR42.1m
EBIT (pre non-trading items) EUR(10.3)m EUR(9.5)m -8.4% EUR0.8m
EBIT (including non-trading
items) EUR(10.3)m EUR(9.5)m -8.4% EUR(10.4)m
---------- --------- -------- ----------
Non-trading items: HY 2021: EURnil; HY 2020: EURnil; FY 2020:
EUR(11.2) million.
* FY 2020 = Year End up to 31 December 2020
ICG reports its results for HY 2021 against the background of
continuing restrictions on non-essential passenger travel first
imposed in March 2020 across the EU because of the Covid-19
pandemic.
The Group recorded revenue of EUR141.6 million compared with
EUR130.8 million in HY 2020, an increase of 8.3%. Earnings before
interest, tax, depreciation and amortisation (EBITDA) before
non-trading items were EUR12.7 million compared with EUR10.0
million in HY 2020. Group fuel costs increased by EUR5.6 million
(32.7%) to EUR22.7 million from EUR17.1 million. Earnings before
interest and tax (EBIT) were EUR(10.3) million compared with
EUR(9.5) million in HY 2020. A loss before tax of EUR12.2 million
is reported compared with a loss before tax of EUR11.2 million in
HY 2020.
There was a net finance charge of EUR1.9 million (2020: EUR1.7
million) which includes net bank interest payable of EUR1.3 million
(2020: EUR1.3 million), lease interest EUR0.6 million (2020: EUR0.5
million) and net pension interest income of EURnil (2020: EUR0.1
million). The tax charge amounted to EUR0.5 million (2020: EUR0.4
million). Basic EPS was (6.8)c compared with (6.2)c in HY 2020.
Adjusted EPS amounted to (6.8)c versus (6.2)c for HY 2020.
Operational Review
Ferries Division
Financial Highlights
HY 2021 HY 2020 Change % FY 2020
Revenue* EUR62.9m EUR61.6m 2.1% EUR141.4m
EBITDA (pre non-trading items) EUR(0.6)m EUR1.1m -154.5% EUR22.3m
EBIT (pre non-trading items) EUR(18.9)m EUR(15.3)m -23.5% EUR(12.3)m
EBIT (including non-trading
items) EUR(18.9)m EUR(15.3)m -23.5% EUR(23.5)m
---------- ---------- -------- ----------
Non-trading items: HY 2021: EURnil; HY 2020: nil; FY 2020:
EUR(11.2) million.
*Includes intersegment revenue of EUR5.8 million (HY 2020:
EUR3.5 million)
The division comprises Irish Ferries, a leading provider of
passenger and freight ferry services between Ireland / UK, Ireland
/ France and the UK / France and the chartering of vessels.
Revenue in the division was EUR62.9 million (2020: EUR61.6
million) while EBITDA was EUR(0.6) million (2020: EUR1.1 million).
EBIT was a loss of EUR18.9 million compared to a loss of EUR15.3
million in HY 2020.
The performance of the ferries operations in HY 2021 was
significantly affected by the continuation of travel restrictions
on non-essential travel across the EU as a response to the Covid-19
pandemic. With only essential travel permitted ex Ireland, the
suspension, on a rolling basis, of the seasonal Dublin Swift
fastcraft sailings was retained. A full schedule of the Irish
Ferries conventional ferry services, with reduced passenger
capacity, was operated to facilitate those customers who were
required to travel for essential reasons.
Irish Ferries commenced a new service on the Dover -- Calais
route on 29 June 2021, initially with one vessel, the Isle of
Inishmore, which underwent upgrading works prior to entering
service on that route. The Rosslare -- Pembroke route previously
served by the Isle of Inishmore is now operated by the Blue Star 1.
The Blue Star 1 has been chartered for a period of up to two
years.
Tourism
HY 2021 HY 2020 Change % FY 2020
Car volumes ('000) 29.8 56.6 -47.3% 137.1
Passenger volumes ('000) 132.8 233.9 -43.2% 519.0
Passenger revenue EUR10.1m EUR14.3m -29.4% EUR33.7m
-------- -------- -------- --------
In HY 2021 total cars carried were 29,800, down 47.3% on the
same period in HY 2020. Total passenger carryings were 132,800, a
decrease of 43.2% on HY 2020. This decline in carryings reflects a
full six month period of travel restrictions, in comparison with HY
2020, where restrictions on non-essential travel were imposed from
mid-March in response to the Covid-19 pandemic. The effects of
these restrictions were accentuated by the Irish government not
fully reciprocating the Common Travel Area protocols between the
Ireland and the UK, whereby throughout HY 2021 the Republic of
Ireland continued to impose restrictions on travellers arriving
from Britain, whereas such restrictions were not operated by the UK
on travellers arriving from the Republic of Ireland.
Freight
HY 2021 HY 2020 Change % FY 2020
RoRo freight volumes ('000) 126.7 149.4 -15.2% 335.5
RoRo freight revenue EUR44.0m EUR40.8m 7.8% EUR92.2m
-------- -------- -------- --------
Freight carryings in HY 2021 were 126,700 units, a decrease of
15.2% over HY 2020, whereas freight revenues increased 7.8%. The
increase in revenues reflects a greater share of carryings on our
higher yielding direct Ireland France services against the carrying
reductions on the Ireland UK services.
The overall volume decline is reflective of a change in RoRo
freight travel patterns due to new customs requirements for goods
arriving into the Republic of Ireland from the UK following the end
of the transition period on 31 December 2020. To bypass these
customs formalities there has been a diversion of traffic to and
from Britain from ports in the Republic of Ireland to ports in
Northern Ireland where customs checks have been suspended, or in
the case of landbridge movements to Continental Europe via the UK
to direct services between Ireland and France where free movement
of goods is permitted. The initial magnitude of this shift between
routes is slowly reversing as customers adapt to the new custom
formalities. However, a return to previous route shares between
routes serving Britain from Northern Ireland and the Republic of
Ireland will be delayed while Northern Ireland customs formalities
remain suspended beyond the transitional period previously agreed
between the UK government and the EU.
Chartering
HY 2021 HY 2020 Change % FY 2020
Charter revenue EUR8.8m EUR6.5m 35.4% EUR14.5m
-------- ------- -------- --------
The division owns six container vessels, four of which are
chartered internally to Eucon and two chartered externally. The
increase in revenue primarily relates to a strong charter market
driven by increased global trade and a shortage of vessels. The
comparison is also affected by off-hire days during HY 2020 while
certain of the container vessels were undergoing upgrading works.
Charter revenue also includes earnings from the long term
receivable relating to the bareboat hire purchase contract arising
from the disposal of the Oscar Wilde in a prior period.
Costs
HY 2021 HY 2020 Change % FY 2020
Depreciation, impairment and
amortisation EUR18.3m EUR16.4m 11.6% EUR34.6m
Employee benefits expense EUR7.9m EUR8.5m -7.1% EUR13.1m
Other operating costs EUR55.6m EUR52.0m 6.9% EUR104.8m
-------- -------- -------- ---------
Total operating costs EUR81.8m EUR76.9m 6.4% EUR152.5m
-------- -------- -------- ---------
Costs in the division increased by EUR4.9 million in HY 2021
compared to HY 2020. In addition to activity related variances,
fuel costs increased to EUR17.1 million from EUR11.8 million in HY
2020; the increase related to higher global fuel prices in
comparison with HY 2020.
Container and Terminal Division
Financial Highlights
HY 2021 HY 2020 Change % FY 2020
Revenue* EUR85.2m EUR73.2m 16.4% EUR146.5m
EBITDA EUR13.3m EUR8.9m 49.4% EUR19.8m
EBIT EUR8.6m EUR5.8m 48.3% EUR13.1m
-------- -------- -------- ---------
*Includes intersegment revenue of EUR0.6 million (HY 2020:
EUR0.5 million)
Operational Highlights
HY 2021 HY 2020 Change % FY 2020
Volumes '000 '000 '000
Containers shipped (teu) 176.7 155.7 13.5% 316.3
Port lifts 165.5 141.0 17.4% 292.4
-------- ------- -------- -------
The Container and Terminal Division includes the intermodal
shipping line Eucon as well as the division's strategically located
container terminals in Dublin and Belfast.
Revenue in the division increased by 16.4% to EUR85.2 million
(2020: EUR73.2 million), EBITDA increased to EUR13.3 million (2020:
EUR8.9 million) while EBIT increased to EUR8.6 million (2020:
EUR5.8 million).
Total containers shipped by Eucon were up 13.5% at 176,700 teu
(2020: 155,700 teu). In response to increased demand as supply
chains restocked following Covid-19 disruptions, the division
increased its core fleet to six vessels in January 2021 having
off-hired a vessel in April 2020. Fuel costs increased to EUR5.6
million from EUR5.3 million in HY 2020 due to a combination of
increased fleet size and increases in global fuel prices. Other
costs increased in line with capacity changes and volumes, together
with increases in charter rates.
Containers handled at our container terminals in Dublin and
Belfast rose 17.4% to 165,500 lifts (2020: 141,000 lifts). Dublin
Ferryport Terminals' activity was up 16.8% and activity at Belfast
Container Terminal was up 18.5%.
Statement of Financial Position
A summary Statement of Financial Position as at 30 June 2021 is
presented below:
30 Jun 2021 30 Jun 2020 31 Dec 2020
EURm EURm EURm
Property, plant and equipment and
intangible assets 316.5 324.3 314.7
Right-of-use assets 50.6 31.7 38.3
Long term receivable 15.1 18.0 16.6
Retirement benefit surplus 16.1 9.5 1.0
Other assets 66.2 59.4 57.9
Cash and bank balances 131.1 132.5 150.4
----------- ----------- ------------
Total assets 595.6 575.4 578.9
----------- ----------- ------------
Non-current borrowings 143.5 219.8 140.9
Retirement benefit obligations 1.4 3.6 2.2
Other non-current liabilities 1.4 0.7 0.8
Current borrowings 99.7 16.0 98.0
Other current liabilities 80.3 65.6 71.2
----------- ----------- ------------
Total liabilities 326.3 305.7 313.0
----------- ----------- ------------
Total equity 269.3 269.7 265.9
----------- ----------- ------------
Total equity and liabilities 595.6 575.4 578.9
----------- ----------- ------------
The analysis of key movements in the period since 31 December
2020 is set out below.
The principal movements in property, plant and equipment and
intangible assets relate to the upgrades on the Isle of Inishmore,
acquisition of new plant at Dublin Ferryport Terminals and
scheduled replacement expenditure less depreciation charge in the
period. The movement in right-of-use assets mainly relates to the
charter of the vessel Blue Star 1 to service the Rosslare --
Pembroke route allowing the Isle of Inishmore to be redeployed on
the new Dover -- Calais route. The long-term receivable relates to
deferred sales proceeds receivable under the hire purchase sale
agreement entered into on the sale of a surplus vessel in a prior
period.
The increase in other current assets is attributable to
increased trade debtors relating to higher freight revenues and
prepayments on asset purchases. The increase in other current
liabilities mainly relates to the seasonal increase in passenger
deferred revenue balances.
The assumptions used to value pension obligations were reviewed
against the background of market conditions as at 30 June 2021.
This review resulted in a change in discount and inflation rate
assumptions while other assumptions were retained at 31 December
2020 levels. A net actuarial gain of EUR15.9 million arose in HY
2021 comprising gains on assets in excess of previous return
assumptions together with reductions in liabilities attributable to
the change in financial assumptions.
Shareholders' equity increased to EUR269.3 million from EUR265.9
million over the period. The movements primarily comprised of the
loss for the financial period of EUR12.7 million, net actuarial
gains of EUR15.9 million arising on retirement benefit schemes and
settlement of share options. No dividends were paid in HY 2021.
Cash Flow and Financing
A summary of cash flows in the half year to 30 June 2021 is
presented below:
HY 2021 HY 2020 FY 2020
EURm EURm EURm
Operating loss (EBIT)* (10.3) (9.5) (10.4)
Non-trading items - - 11.2
Depreciation, impairment and amortisation 23.0 19.5 41.3
------- ------- -------
EBITDA* (pre non-trading items) 12.7 10.0 42.1
------- ------- -------
Working capital movements 6.1 6.9 10.6
Pension payments in excess of service costs - (0.6) (1.1)
Other 0.1 (0.5) (0.4)
------- ------- -------
Cash generated from operations 18.9 15.8 51.2
------- ------- -------
Interest paid (2.8) (1.7) (3.7)
Tax paid (0.3) (0.3) (1.4)
Intangible asset additions (0.6) (0.3) (1.0)
Capital expenditure excluding strategic capital
expenditure (10.2) (8.2) (9.8)
------- ------- -------
Free cash flow before strategic capital
expenditure* 5.0 5.3 35.3
------- ------- -------
Strategic capital expenditure (10.4) (12.9) (19.3)
Repayment of vessel contract deposit - 33.0 33.0
------- ------- -------
Free cash flow after strategic capital expenditure* (5.4) 25.4 49.0
------- ------- -------
Net asset sales 1.4 2.6 4.9
Share issue 0.2 - 0.2
Share buyback - (1.8) (1.7)
------- ------- -------
Net cash flows (3.8) 26.2 52.4
Opening net debt (88.5) (129.0) (129.0)
Lease liability non-cash movements (19.3) (1.2) (12.5)
Translation / other (0.5) 0.7 0.6
------- ------- -------
Closing net debt (112.1) (103.3) (88.5)
------- ------- -------
*Additional information in relation to these Alternative
Performance Measures (APMs) is disclosed on page 22.
The Group funds its activities from a combination of cash
generated from day-to-day operating activities and borrowings,
including revolving credit facilities, term loans, loan notes and
leasing arrangements. Net debt at 30 June 2021 increased to
EUR112.1 million from EUR88.5 million at 31 December 2020.
Cash generated from operations in the period amounted to EUR18.9
million, a EUR3.1 million improvement on the prior year. Total
capital expenditure including intangibles amounted to EUR21.2
million. Overall net cash outflows in the period of EUR3.6 million,
combined with the recognition of leases liabilities of EUR19.3
million, mainly relating to vessel charter commitments, were the
main elements behind the increased net debt.
An analysis of the movements in net debt are set out in the
table below.
Net debt
Cash Origination Fees Bank Loans & PP Notes Lease Liabilities Net Debt
EURm EURm EURm EURm EURm
At 31
December
2020 150.4 0.9 (201.3) (38.5) (88.5)
Lease
liability
non-cash
movements - - - (19.3) (19.3)
Cash flows (19.4) - 7.8 7.8 (3.8)
Translation
/ other 0.1 (0.2) - (0.4) (0.5)
------ ---------------- --------------------- ----------------- --------
At 30 June
2021 131.1 0.7 (193.5) (50.4) (112.1)
------ ---------------- --------------------- ----------------- --------
The borrowing facilities available to the Group at 30 June 2021
were as follows;
Borrowing Facilities
Committed Committed
facilities facilities
Facility Committed drawn undrawn
EURm EURm EURm EURm
Revolving credit 125.0 75.0 - 75.0
Private placement 231.4 50.0 50.0 -
Bank loans 143.5 143.5 143.5 -
Lease liabilities 50.4 50.4 50.4 -
Overdraft and other 15.4 15.4 - 15.4
-------- --------- ----------- -----------
565.7 334.3 243.9 90.4
-------- --------- ----------- -----------
At 30 June 2021 the Group had total lending facilities of
EUR565.7 million available of which EUR334.3 million were committed
facilities. EUR243.9 million of the committed facilities were
drawn. In addition to the committed lines of credit, the Group had
arranged uncommitted facilities of EUR231.4 million with
utilisation dates expiring within three years.
On 2 July 2021, the Group repaid from cash resources the
principal balance of EUR76.0 million on a term loan previously
drawn to finance the building of a cruise ferry which was cancelled
due to the insolvency of the shipbuilder.
Dividend
Due to the effects of Covid-19 on Group profitability in
financial year 2020, no dividends were paid during 2020 or in the
year to date. The Directors note the improvement in trading
conditions following the adoption of the EU Digital Covid
Certificate arrangements on 19 July 2021 and continuing robustness
in freight revenues. However, in light of the result to 30 June
2021 and continuing uncertainty around the possibility of future
passenger travel restrictions while Covid-19 threats remain
prevalent, the Directors continue to consider it prudent not to
declare a dividend at this time.
Fuel
HY 2021 HY 2020 Change % FY 2020
Fuel costs EUR22.7m EUR17.1m 32.7% EUR32.8m
-------- -------- -------- --------
Group fuel costs in the first half of 2021 amounted to EUR22.7
million (2020: EUR17.1 million). The movement in fuel costs was due
to higher global fuel costs and an increase in the operated
container fleet.
The Group has in place fuel surcharge mechanisms for freight
customers which mitigates the effects of movements in Euro fuel
costs. The Group has invested in exhaust gas cleaning systems
(EGCS) on two of its cruise ferries and four of its owned container
vessels, all of which are operated on Group services. EGCS allow
the consumption of lower cost fuels while meeting all current
emission regulations. Other vessels are required to consume higher
cost fuels to meet the same regulations.
While the Group complies with all current fuel and emissions
regulations, the Group notes new regulations being considered at
both the EU and global level in response to climate change
concerns. While the Company acknowledges the role it must play in
protecting the environment, the level of surcharges may have to be
adjusted to pass any increased compliance costs through the supply
chain.
In the reporting period the Group did not engage in financial
derivative trading to hedge its fuel costs.
Post Brexit Developments
The transition period following the UK exit from the EU ended on
31 December 2020. There have been two main effects on our RoRo
freight business since then;
-- Diversion of landbridge movements to direct services.
-- Diversion of Irish Sea UK trade from ports in Ireland to ports in
Northern Ireland due to non-implementation of full customs requirements.
While the above has negatively affected overall freight carrying
numbers out of Republic of Ireland ports, the re-allocation of
capacity to direct services combined with the higher yields has
allowed the Group to maintain and increase previous levels of
revenues. The initial diversion of traffic from ports in the
Republic of Ireland to ports in Northern Ireland has partly
reversed as hauliers familiarise themselves with the new
arrangements. However, it is with concern that we note the
continuing suspension of customs formalities past previously agreed
transitionary dates at Northern Ireland ports on goods arriving
from Britain. This is continuing the distortion in the level
playing field between Northern Ireland and Republic of Ireland
ports, where full customs requirements are imposed.
Our container shipping and container port services have been
largely unaffected by Brexit.
Strategic Developments
The Group's Irish Ferries operations commenced a new ferry
service on the Dover -- Calais route on 29 June 2021, with the
transfer of the Isle of Inishmore to the route. The Blue Star 1 was
chartered to replace the Isle of Inishmore on the Irish Sea
Rosslare -- Pembroke route. The commencement of the Dover -- Calais
represents a strategic milestone in the development of the Group.
It is intended to introduce a second vessel onto the route later in
2021 which will increase the attractiveness of our offering with 20
sailings per day. The English Channel "Short Straits" market is a
multiple of the size of the Ireland - UK market where the Group
currently offers services and provides the opportunity to
significantly scale up its existing ferries business model.
The Group placed an order for five electrically powered remotely
operated rubber-tyred gantries (RTGs) at its Dublin Ferryport
Terminals following the previous successful commissioning of four
similar RTGs. These form part of a replacement and expansion
program at Dublin Ferryport Terminals which will see the terminal
fully electrically operated with the removal of all diesel powered
units. The first two RTGs will be delivered in Q2 2022 with the
other three RTGs delivered in 2023. The delivery and commissioning
of these RTGs along with the relocation of our depot for storage of
empty containers to the Dublin Inland Port will increase the
capacity at our DFT terminal in the second half of 2022.
At Belfast Container Terminal, the developments are continuing
in conjunction with Belfast Harbour Commissioners. The final phase
of civil works has commenced to build two new RTG stacks and the
final three of eight RTGs delivered will be commissioned in Q4
2021.
In 2020, the Group was successful in the public tender to
operate a container depot at the new Dublin Inland Port. The Group
has signed an agreement to enter into a 20-year lease for this
operation on completion of certain civil works by the landlord. The
facility is expected to become operational prior to year end. This
facility will be used for the remote storage, maintenance and
upgrade of empty container boxes, releasing valuable capacity for
the handling of containers in the port area.
Sustainability
The Group recognises the threat posed by climate change to
humanity and overall biodiversity. The report published on 9 August
2021 by the Intergovernmental Panel on Climate Change (IPCC)
unequivocally establishes human-caused emissions to have
dangerously and permanently changed our planet.
While transport by sea is one of the most efficient modes of
transport, these activities still have an unavoidable impact on the
environment. The maritime transport industry is responsible for
approximately 2.5% of the world's total CO2 emissions each year.
Our industry, which relies heavily on carbon-based fuels must play
its part. Key to the Group's sustainability strategy is achieving
compliance with the International Maritime Organization (IMO)
targets to reduce carbon intensity by 40% by 2030 versus 2008
levels.
Among the activities undertaken in 2021 to deliver continuous
improvements in line with the Group's environmental framework
include;
-- The continuation of the 'Green Voyage' programme across the fleet,
utilising real time analytics and ship-to-shore communications to
optimise fuel consumption and use of machinery.
-- The use of a biofuel blend on a trial basis on board the Dublin Swift
which, if successful, can be introduced more prominently across suitable
vessels.
-- Planned trials for hull installation of new air lubrication technologies
aimed to reduce water resistance and ultimately fuel consumption.
-- The delivery of 400 new Eucon container units fitted with eco-friendly
bamboo flooring, adding to an existing 650 container units with bamboo
flooring in the fleet. Approximately 25% of the Group's owned container
fleet now contain bamboo flooring.
-- The ongoing phased replacement of diesel-powered cranes with electric
units at our Dublin and Belfast terminal facilities.
-- The continued upgrade of the Group's truck and forklift fleet to European
Stage V non-road emissions standard.
-- The planned installation of solar tiles on buildings at our Dublin
terminal in the second half of the year.
The Group is also assessing and monitoring developments on the
draft legislative proposals from the European Commission released
on 14 July 2021, which include the proposed FuelEU Maritime
Regulation and the application of the EU Emissions Trading System
and Energy Taxation Directive to the maritime industry.
The Group notes the disclosure requirements of the Task Force on
Climate-Related Financial Disclosures (TCFD) which will be
mandatory for the 2021 Annual Report.
Related Party Transactions
There were no related party transactions in the half year that
have materially affected the financial position or performance of
the Group in the period other than in respect of remuneration paid
to key management personnel.
Principal Risks and Uncertainties
The Group has a risk management structure in place which is
designed to identify, manage and mitigate the threats to the
business on an ongoing basis. The principal risks and uncertainties
faced by the Group as set out in detail on pages 54 to 61 of the
2020 Annual Report are categorised as: commercial & market,
business continuity, safety & environmental protection,
operational compliance, human capital, financial loss, fraud,
economic volatility, retirement benefit scheme and information
security & cyber threats.
These risk areas remain the most likely to affect the Group
during the second half of the financial year and the Group will
continue to be affected by the uncertainty around the potential
re-imposition of travel restrictions in response to Covid-19.
The Group will actively manage these and all other risks through
its risk management structure.
Board Changes
The Board of Irish Continental Group plc is pleased to announce
the co-option to the Board of Dan Clague as a non-executive
Director. The appointment is effective immediately.
Dan Clague is a Managing Director of Stephens Europe, an
independent investment bank for middle market companies where Dan
leads the Transport Services and Infrastructure Group. With over 25
years' experience in investment banking, Dan has previously held
senior positions with Hawkpoint Partners, SG Hambros, ABN Amro and
Baring Brothers. Prior to entering investment banking, Dan spent a
number of years working in the maritime sector as a shipping and
ports manager. He has global experience of both public and private
company mergers and acquisitions across the transport industry
including the RoRo, LoLo and port sectors. Dan is based in
London.
Change of Auditor
KPMG were appointed auditor to the Company following the
approval of shareholders at the Annual General Meeting held on 12
May 2021.
Going Concern
The Company had previously reported in its 2020 Annual Report
that it had modelled a number of scenarios for its businesses
including retention of travel restrictions on non-essential travel
for all of 2021. The Company notes that these restrictions remained
in place for HY 2021. Passenger revenues in HY 2021 were broadly in
line with the scenario projections while freight revenues exceeded
expectations. Effective from 19 July 2021, the restrictions on
non-essential travel have been removed with the Irish Government
adopting the EU Digital Covid Certificate arrangements based on
vaccination status.
In the period since removal of travel restrictions up to the
date of approval of these Condensed Financial Statements, the Group
has experienced increased passenger revenues on its existing routes
in excess of those previously modelled. The Group has updated its
projections based on a gradual return of previous travel patterns,
together with the expected contribution from its new Dover - Calais
route which commenced in June.
Notwithstanding the uncertainty in the rate of recovery of
passenger revenues, on the basis of these projections the Group
expects to generate sufficient cash from operations to enable it to
retain sufficient liquidity to operate and meet its financial
obligations and has continued to adopt the going concern assumption
in the preparation of these Condensed Financial Statements.
Events after the Reporting Period
On 2 July 2021, the Group repaid from existing cash resources
the outstanding principal of EUR76.0 million on a term loan
advanced by the European Investment Bank. The Group has contracted
to take delivery of a ropax ferry during the second half of 2021,
which is intended to be deployed within the Group's ferry
operations.
Current Trading and Outlook
Travel restrictions remained in place until 19 July 2021 when
the Irish Government adopted the EU Digital Covid Certificate
arrangements based on vaccination status. Since adoption of the new
rules, the Group has experienced an uplift in passenger numbers
traveling on existing services compared to the prior year. Freight
carryings since 1 July 2021 have remained robust across all the
Group operations, taking into consideration the change in
underlying RoRo routing patterns post Brexit.
The Dover -- Calais service commenced on 29 June 2021. The Group
will develop this service offering with the intention of
introducing a second vessel on this route later in 2021.
Ferries
Activity in the Ferries Division on existing routes (excluding
the new Dover -- Calais service), in the period from 1 July 2021 to
21 August 2021 compared to the same period last year is set out
below;
-- Car carryings were 38,000 cars, an increase of 30%. Pre-restriction
volumes in the same period in 2019 were 112,200 cars.
-- RoRo freight carryings were 38,300 units, a decrease of 21%, whereas
underlying revenues were in line with the same period last year due to
the change in underlying mix of traffic.
Cumulatively, in the period from 1 January 2021 to 21 August
2021 compared to the same period last year activity was;
-- Car carryings were 67,800 cars, a decrease of 21%. Pre-restriction
volumes in the same period in 2019 were 273,300 cars.
-- RoRo freight carryings were 165,000 units, a decrease of 17%, whereas
underlying revenues increased by 6% due to the change in underlying mix
of traffic.
Container and Terminal
Activity in the Container and Terminal Division in the period
from 1 July 2021 to 21 August 2021 compared to the same period last
year was;
-- Containers shipped were 49,900 teu, an increase of 11%.
-- Port lifts were 48,800 lifts, an increase of 21%.
Cumulatively, in the period from 1 January 2021 to 21 August
2021 compared to the same period last year activity was;
-- Containers shipped were 226,600 teu, an increase of 13%.
-- Port lifts were 214,300 lifts, an increase of 18%.
It is very difficult to estimate the full year financial outturn
for the Group, given uncertainty around the pace of recovery in
passenger travel and continuing risk of travel restrictions should
future waves of Covid-19 arise. While passenger carryings remain
significantly behind the pre-restriction levels of 2019, the
current recovery in passenger volumes on existing routes since 19
July 2021 and continuing strength in freight revenues are
encouraging, as is the commencement of our new Dover -- Calais
service. Activity in the container shipping and terminal operations
for the remainder of the year is expected to exceed the prior year
levels, though there are some cost pressures being experienced. The
Group has remained cash generative on an operational basis and
remains in a strong financial position to weather any further
disruption to passenger travel and leverage any appropriate
strategic opportunities which may arise.
Auditor Review
This half-yearly financial report has not been audited or
reviewed by the auditors of the Group.
Forward-Looking Statements
This report contains certain forward-looking statements. These
statements are made by the Directors in good faith based on the
information available to them up to the time of their approval of
this report. These forward-looking statements should be treated
with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such
forward-looking information.
This report has been prepared for the Group as a whole and
therefore gives greater emphasis to those matters which are
significant to Irish Continental Group plc and its subsidiaries
when viewed as a whole.
Website
This half-yearly financial report is available on the Group's
website www.icg.ie.
John B. McGuckian
Chairman
25 August 2021
RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Half-Yearly
Financial Report in accordance with the Transparency (Directive
2004/109/EC) Regulations 2007 (as amended), the related
Transparency Rules of the Central Bank of Ireland and IAS 34,
'Interim Financial Reporting' as adopted by the European Union.
Each of the Directors confirm that to the best of their
knowledge and belief:
-- the Group Condensed Financial Statements for the half year ended 30 June
2021 have been prepared in accordance with the International Accounting
Standard applicable to interim financial reporting (IAS 34 Interim
Financial Reporting) adopted pursuant to the procedure provided for under
Article 6 of the Regulation (EC) No. 1606/2002 of the European Parliament
and the Council of 19 July 2002;
-- the Interim Management Report includes a fair review of the important
events that have occurred during the first six months of the financial
year, their impact on the Group Condensed Financial Statements for the
half year ended 30 June 2021, and a description of the principal risks
and uncertainties for the remaining six months; and
-- the Interim Management Report includes a fair review of related party
transactions that have occurred during the first six months of the
current financial year and that have materially affected the financial
position or the performance of the Group during that period, and any
changes in the related parties transactions described in the last Annual
Report that could have a material effect on the financial position or
performance of the Group in the first six months of the current financial
year.
On behalf of the Board
Eamonn Rothwell David Ledwidge
Director Director
25 August 2021
CONDENSED CONSOLIDATED
INCOME STATEMENT
FOR THE HALF YEARED 30 JUNE 2021
Notes HY 2021 HY 2020 FY 2020
Unaudited Unaudited Audited
EURm EURm EURm
Revenue 4 141.6 130.8 277.1
Depreciation, impairment and amortisation (23.0) (19.5) (41.3)
Employee benefits expense (10.3) (11.1) (18.0)
Other operating expenses (118.6) (109.7) (217.0)
--------- --------- -------
(10.3) (9.5) 0.8
Non-trading items 6 - - (11.2)
----- --------- --------- -------
Operating loss (10.3) (9.5) (10.4)
Finance income - 0.1 0.2
Finance costs (1.9) (1.8) (7.8)
--------- --------- -------
Loss before taxation (12.2) (11.2) (18.0)
Income tax expense (0.5) (0.4) (1.0)
--------- --------- -------
Loss for the financial period: all attributable to
equity holders of the parent 4 (12.7) (11.6) (19.0)
----- --------- --------- -------
Earnings per ordinary share
-- expressed in cent per share
Basic 7 (6.8)c (6.2)c (10.2)c
----- --------- --------- -------
Diluted 7 (6.8)c (6.2)c (10.2)c
----- --------- --------- -------
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
FOR THE HALF YEARED 30 JUNE 2021
HY 2021 HY 2020 FY 2020
Unaudited Unaudited Audited
Notes EURm EURm EURm
Loss for the financial period (12.7) (11.6) (19.0)
--------- ---------------- -------
Items that may be reclassified subsequently to profit
or loss:
Exchange differences on translation of foreign
operations 0.8 (1.2) (1.2)
Items that will not be reclassified subsequently to
profit or loss:
Actuarial gain / (loss) on defined benefit pension
schemes 14 15.9 (3.5) (0.8)
Deferred tax on defined benefit pension schemes (0.9) 0.4 0.3
--------- ---------------- -------
Other comprehensive income for the financial period 15.8 (4.3) (1.7)
--------- ---------------- -------
Total comprehensive income for the financial period:
all attributable to equity holders of the parent 3.1 (15.9) (20.7)
--------- ---------------- -------
CONDENSED CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2021
30 Jun 21 30 Jun 20 31 Dec 20
Unaudited Unaudited Audited
Notes EURm EURm EURm
Assets
Non-current assets
Property, plant and equipment 8 314.8 323.7 313.5
Right-of-use assets 9 50.6 31.7 38.3
Intangible assets 1.7 0.6 1.2
Long term receivable 10 15.1 18.0 16.6
Retirement benefit surplus 14 16.1 9.5 1.0
Deferred tax asset 0.1 - 0.3
--------- --------- ---------
398.4 383.5 370.9
--------- --------- ---------
Current assets
Inventories 3.0 1.9 1.9
Trade and other receivables 63.1 57.5 55.7
Cash and bank balances 11 131.1 132.5 150.4
----- --------- --------- ---------
197.2 191.9 208.0
--------- --------- ---------
Total assets 595.6 575.4 578.9
--------- --------- ---------
Equity and liabilities
Equity
Share capital 12.2 12.2 12.2
Share premium 19.9 19.5 19.7
Other reserves (9.1) (10.1) (9.3)
Retained earnings 246.3 248.1 243.3
--------- --------- ---------
Equity attributable to equity holders 269.3 269.7 265.9
--------- --------- ---------
Non-current liabilities
Borrowings 11 109.5 192.7 113.1
Lease liabilities 11 34.0 27.1 27.8
Deferred tax liabilities 1.2 0.3 0.5
Provisions 0.2 0.4 0.2
Retirement benefit obligations 14 1.4 3.6 2.2
----- --------- --------- ---------
146.3 224.1 143.8
----- --------- --------- ---------
Current liabilities
Borrowings 11 83.3 11.3 87.3
Lease liabilities 11 16.4 4.7 10.7
Trade and other payables 78.0 63.7 69.2
Current income tax liabilities 0.3 0.3 -
Provisions 2.0 1.6 2.0
--------- --------- ---------
180.0 81.6 169.2
--------- --------- ---------
Total liabilities 326.3 305.7 313.0
--------- --------- ---------
Total equity and liabilities 595.6 575.4 578.9
--------- --------- ---------
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE HALF YEARED 30 JUNE 2021 (UNAUDITED)
Share
Share Share Capital Options Translation Retained
Capital Premium Reserve Reserve Reserve Earnings Total
EURm EURm EURm EURm EURm EURm EURm
Balance at 1 January 2021 12.2 19.7 7.5 5.1 (21.9) 243.3 265.9
------- -------- ------- ------- ----------- --------- ------
Loss for the financial
period - - - - - (12.7) (12.7)
Other comprehensive income - - - - 0.8 15.0 15.8
------- -------- ------- ------- ----------- --------- ------
Total comprehensive income
for the financial period - - - - 0.8 2.3 3.1
Employee share-based
payments expense - - - 0.9 - - 0.9
Share issue - 0.2 - - - - 0.2
Settlement of share
options through market
purchase - - - - - (0.8) (0.8)
Transfer to retained
earnings on exercise of
options - - - (1.5) - 1.5 -
Total movements in the
financial period - 0.2 - (0.6) 0.8 3.0 3.4
Balance at 30 June 2021 12.2 19.9 7.5 4.5 (21.1) 246.3 269.3
-------------------------- ------- -------- ------- ------- ----------- --------- ------
FOR THE HALF YEARED 30 JUNE 2020 (UNAUDITED)
Share
Share Share Capital Options Translation Retained
Capital Premium Reserve Reserve Reserve Earnings Total
EURm EURm EURm EURm EURm EURm EURm
Balance at 1 January 2020 12.2 19.5 7.5 5.9 (20.7) 263.5 287.9
------- -------- ------- ------- ----------- --------- ------
Loss for the financial
period - - - - - (11.6) (11.6)
Other comprehensive income - - - - (1.2) (3.1) (4.3)
------- -------- ------- ------- ----------- --------- ------
Total comprehensive income
for the financial period - - - - (1.2) (14.7) (15.9)
Employee share-based
payments expense - - - 1.0 - - 1.0
Share issue - - - - - - -
Share buy back - - - - - (1.8) (1.8)
Settlement of share
options through market
purchase - - - - - (1.5) (1.5)
Transfer to retained
earnings on exercise of
options - - - (2.6) - 2.6 -
Total movements in the
financial period - - - (1.6) (1.2) (15.4) (18.2)
Balance at 30 June 2020 12.2 19.5 7.5 4.3 (21.9) 248.1 269.7
-------------------------- ------- -------- ------- ------- ----------- --------- ------
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE FINANCIAL YEARED 31 DECEMBER 2020 (AUDITED)
Share
Share Share Capital Options Translation Retained
Capital Premium Reserve Reserve Reserve Earnings Total
EURm EURm EURm EURm EURm EURm EURm
Balance at 1 January 2020 12.2 19.5 7.5 5.9 (20.7) 263.5 287.9
------- -------- ------- ------- ----------- --------- ------
Loss for the financial period - - - - - (19.0) (19.0)
Other comprehensive income - - - - (1.2) (0.5) (1.7)
------- -------- ------- ------- ----------- --------- ------
Total comprehensive income for
the financial period - - - - (1.2) (19.5) (20.7)
Employee share-based payments
expense - - - 1.9 - - 1.9
Share issue - 0.2 - - - - 0.2
Share buy back - - - - - (1.7) (1.7)
Settlement of share options
through market purchase - - - - - (1.7) (1.7)
Transfer to retained earnings
on exercise of options - - - (2.7) - 2.7 -
Total movements in the
financial period - 0.2 - (0.8) (1.2) (20.2) (22.0)
Balance at 31 December 2020 12.2 19.7 7.5 5.1 (21.9) 243.3 265.9
------------------------------ ------- -------- ------- ------- ----------- --------- ------
CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE HALF YEARED 30 JUNE 2021
HY 2021 HY 2020 FY 2020
Unaudited Unaudited Audited
Notes EURm EURm EURm
Net cash inflow from operating activities 15 15.8 13.8 46.1
----------------- --------------- ----------------- -------
Cash flow from investing activities
Net proceeds on disposal of property, plant and
equipment 1.4 2.6 4.9
Refund of vessel deposit - 33.0 33.0
Purchases of property, plant and equipment 8 (20.3) (21.1) (29.1)
Purchases of other assets (0.9) (0.3) (1.0)
----------------- --------------- ----------------- -------
Net cash (outflow) / inflow from investing
activities (19.8) 14.2 7.8
----------------- --------------- ----------------- -------
Cash flow from financing activities
Dividends paid to equity holders of the Company 5 - - -
Repayment of lease liabilities (7.8) (4.6) (9.2)
Proceeds on issue of ordinary share capital 0.2 - 0.2
Repayments of bank loans (7.8) - (3.7)
Share buy back - (1.8) (1.7)
----------------- --------------- ----------------- -------
Net cash (outflow) from financing activities (15.4) (6.4) (14.4)
Net (decrease)/ increase in cash and cash
equivalents (19.4) 21.6 39.5
Cash and cash equivalents at the beginning of the
period 150.4 110.9 110.9
Effect of foreign exchange rate changes 0.1 - -
----------------- --------------- ----------------- -------
Cash and cash equivalents at the end of the period 11 131.1 132.5 150.4
----------------- --------------- ----------------- -------
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE HALF YEARED 30 JUNE 2021
1. General information
The Group Condensed Financial Statements are considered
non-statutory financial statements for the purposes of the
Companies Act 2014 and in compliance with section 340(4) of that
Act we state that:
-- the Group Condensed Financial Statements for the half year ended 30 June
2021 have been prepared to meet our obligation to do so under the
Transparency (Directive 2004/109/EC) Regulations 2007 (as amended);
-- the Group Condensed Financial Statements for the half year ended 30 June
2021 do not constitute the statutory financial statements of the Group;
-- the figures disclosed relating to 31 December 2020 have been derived from
the statutory financial statements for the financial year ended 31
December 2020 which were audited, received an unqualified audit report
and have been filed with the Registrar of Companies; and
-- the interim figures included in the Group Condensed Financial Statements
for the half year ended 30 June 2021 and the comparative amounts for the
half year ended 30 June 2020 have been neither audited nor reviewed by
the auditors of the Group.
Certain financial measures set out in our Half-Yearly Financial
Report to 30 June 2021 are not defined under International
Financial Reporting Standards (IFRS). Presentation of these
Alternative Performance Measures (APMs) provides useful
supplementary information which, when viewed in conjunction with
the Group's IFRS financial information, allows for a more
meaningful understanding of the underlying financial and operating
performance of the Group. These non-IFRS measures should not be
considered as an alternative to financial measures as defined under
IFRS. Descriptions of the APMs included in this report are
disclosed below.
APM Description Benefit of APM
EBITDA EBITDA represents earnings before non-trading items*, Eliminates the effects of financing and accounting
interest, tax, depreciation and amortisation. decisions to allow assessment of the profitability
and performance of the Group.
EBIT EBIT represents earnings before interest and tax. Measures the Group's earnings from ongoing
operations.
Free cash Free cash flow comprises operating cash flow less Assesses the availability to the Group of funds for
flow before capital expenditure before strategic capital expenditure reinvestment or for return to shareholders.
strategic which comprises expenditure on vessels excluding annual
capital overhaul and repairs, and other assets with an expected
expenditure economic life of over 10 years which increases capacity
or efficiency of operations.
Net debt Net debt comprises total borrowings less cash and Measures the Group's ability to repay its debts if
cash equivalents. they were to fall due immediately.
Adjusted EPS is adjusted to exclude non-trading items and net A key indicator of long term financial performance
EPS interest cost on defined benefit obligations. and value creation of a public listed company.
*Non-trading items are material non-recurring items that derive
from events or transactions that fall outside the ordinary
activities of the Group and which individually, or, if of a similar
type, in aggregate, are separately disclosed by virtue of their
size or incidence.
In addition to the above APMs the Group utilises additional APMs
of Return on Average Capital Employed and Schedule Integrity in
relation to full year performance which are not meaningful at the
half year.
2. Accounting policies
The Group Condensed Financial Statements for the six months
ended 30 June 2021 have been prepared in accordance with the
Transparency (Directive 2004/109/EC) Regulations 2007 (as amended),
the Central Bank (Investment Market Conduct) Rules 2019 and with
IAS 34 'Interim Financial Reporting' as adopted by the European
Union.
The accounting policies and methods of computation applied in
preparing these Group Condensed Financial Statements are consistent
with those set out in the Group Annual Report for the financial
year ended 31 December 2020, which is available at www.icg.ie.
The following amendments to standards became effective for the
Group commencing 1 January 2021;
-- Amendments to IAS 39, IFRS 4, IFRS 7, IFRS 9 & IFRS 16 -- Phase 2
amendments in relation to Interest Rate Benchmark Reform
The adoption of these amendments did not have a material impact
on these financial statements.
3. Critical Accounting Estimates and Judgements
In the application of the Group's accounting policies, the
Directors are required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities.
In preparing these Condensed Financial Statements the approach to
the making of these judgements, estimates and assumptions is
consistent with that used in the Group Annual Report for the
financial year ended 31 December 2020. Key sources of estimation
uncertainty relate to post-employment benefits and assessment of
useful lives for property, plant and equipment. Critical accounting
judgements are made in respect of identifying indications of
impairment, assessment of non-cancellable lease terms and adoption
of the going concern assumption.
Other than the changes to assumptions used in relation to the
valuation of retirement benefit obligations set out in note 14 to
these Condensed Consolidated Financial Statements there have been
no material changes in estimates that had previously been made in
the prior year financial statements to 31 December 2020.
Impact of Covid-19
The Group has considered the continuing impact of Covid-19 in
respect of the accounting judgements and estimates made in the
preparation of these Condensed Consolidated Financial Statements.
Key considerations included whether the continuing impact of
Covid-19 affected the ongoing adoption of the going concern
assumption or amounted to an indication of impairment.
Going Concern
The Company had previously reported in its 2020 Annual Report
that it had modelled a number of scenarios for its businesses
including retention of travel restrictions on non-essential travel
for all of 2021. The Company notes that these restrictions remained
in place for HY 2021. Passenger revenues in HY 2021 were broadly in
line with the scenario projections while freight revenues exceeded
expectations. Effective from 19 July 2021, the restrictions on
non-essential travel have been removed with the Irish Government
adopting the EU Digital Covid Certificate arrangements based on
vaccination status.
In the period since removal of travel restrictions up to the
date of approval of these Condensed Financial Statements, the Group
has experienced increased passenger revenues on its existing routes
in excess of previously modelled. The Group has updated its
projections based on a gradual return of previous travel patterns,
together with the expected contribution from its new Dover --
Calais route which commenced in June.
Notwithstanding the uncertainty in the rate of recovery of
passenger revenues, on the basis of these projections the Group
expects to generate sufficient cash from operations to enable it to
retain sufficient liquidity to operate and meet its financial
obligations and has continued to adopt the going concern assumption
in the preparation of these Condensed Financial Statements.
Impairment Indicators
At 31 December 2020 the Group performed an assessment of
possible indicators of impairment with a focus on current and near
term profit performance, idle capacity and consideration of
developments in the second-hand vessel market. At that time, based
on the review performed no internal or external indications of
impairment were identified for any material asset and consequently
no impairment assessment was deemed necessary.
During HY 2021, the Group continued to experience a decline in
passenger carryings due to the continuation of government imposed
restrictions placed on travel in the jurisdictions that we offer
services. The continuation of these restrictions throughout 2021
was a scenario considered at 31 December 2020 and was then assessed
that these travel restrictions did not amount to an indication of
impairment. The Company maintained that assessment as at 30 June
2021 noting Ireland's intention, announced on 28 May 2021, to adopt
the EU Digital COVID Certification arrangements from 19 July 2021,
leading to a passenger carrying expectation better than that
previously modelled.
The fastcraft Dublin Swift, which was not operated during the
travel restriction period, returned to scheduled service on 6
August following adoption of the new travel arrangements. The Group
has noted a continued strengthening during HY 2021 in the demand
for and value of second-hand vessels of the types comprised in the
Group's owned fleet.
Based on the above no internal or external indications of
impairment were identified at 30 June 2021 for any material asset
and no impairment review was required.
4. Segmental information
The Board is deemed the chief operating decision maker within
the Group. Under IFRS 8: Operating Segments, the Group has
determined that the operating segments are (i) Ferries and (ii)
Container and Terminal.
These segments are the basis on which the Group reports
internally and are the only two revenue generating segments of the
Group. The principal activities of the Ferries segment are the
operation of combined RoRo passenger ferries and chartering of
vessels. The principal activities of the Container and Terminal
segment are the provision of door-to-door and feeder LoLo freight
services, stevedoring and other related terminal services. There
has been no change in the basis of segmentation or in the basis
measurement of segment profit or loss in the period.
i) Revenue Analysis
By business segment:
HY 2021 HY 2020 FY 2020
EURm EURm EURm
Ferries
Passenger 10.1 14.3 33.7
Freight 44.0 40.8 92.2
Charter 8.8 6.5 15.5
------- ------- -------
62.9 61.6 141.4
------- ------- -------
Container and Terminal
Freight 85.2 73.2 146.5
------- ------- -------
Inter-segment revenue (6.5) (4.0) (10.8)
------- ------- -------
Total 141.6 130.8 277.1
------- ------- -------
The continued travel restrictions imposed across the EU because
of the Covid-19 pandemic led to a significant reduction in
passenger traffic, however, freight activity grew strongly in the
half year ended 30 June 2021 compared to the half year ended 30
June 2020.
As revenues are recognised over short time periods of no more
than days, a key determinant to categorising revenues is whether
they principally arise from a business to customer (passenger
contracts) or a business to business relationship (freight and
charter contracts) as this impacts directly on the uncertainty of
cash flows. On this basis, revenue by business segment is a
reasonable approximation of revenue disaggregation.
By geographic origin of booking:
HY 2021 HY 2020 FY 2020
EURm EURm EURm
Ireland 68.9 63.6 116.2
United Kingdom 14.5 16.5 55.1
Netherlands 35.5 29.8 58.6
Belgium 17.4 15.4 31.7
France 0.6 0.4 1.3
Other 4.7 5.1 14.2
------- ------- -------
141.6 130.8 277.1
------- ------- -------
No single external customer in the current or prior financial
periods amounted to 10 per cent of the Group's revenues.
ii) (Loss) / Profit for the financial year
Ferries Container and Terminal Group Total
HY 2021 HY 2020 FY 2020 HY 2021 HY 2020 FY 2020 HY 2021 HY 2020 FY 2020
EURm EURm EURm EURm EURm EURm EURm EURm EURm
Operating
(loss) /
profit (18.9) (15.3) (12.3) 8.6 5.8 13.1 (10.3) (9.5) 0.8
Finance
income - 0.1 0.2 - - - - 0.1 0.2
Finance
costs (1.4) (1.1) (6.4) (0.5) (0.7) (1.4) (1.9) (1.8) (7.8)
Non-trading
items - - (11.2) - - - - - (11.2)
------- -------- ------- ------- ------- ------- ------- -------- -------
(Loss) /
profit
before tax (20.3) (16.3) (29.7) 8.1 5.1 11.7 (12.2) (11.2) (18.0)
Income tax
expense 0.1 - (0.3) (0.6) (0.4) (0.7) (0.5) (0.4) (1.0)
------- -------- ------- ------- ------- ------- ------- -------- -------
(Loss) /
profit for
the
financial
year (20.2) (16.3) (30.0) 7.5 4.7 11.0 (12.7) (11.6) (19.0)
------- -------- ------- ------- ------- ------- ------- -------- -------
iii) Statement of Financial Position
Ferries Container and Terminal Group Total
30 Jun 21 30 Jun 20 31 Dec 20 30 Jun 21 30 Jun 20 31 Dec 20 30 Jun 21 30 Jun 20 31 Dec 20
EURm EURm EURm EURm EURm EURm EURm EURm EURm
Assets
Segment
assets 365.3 355.0 341.4 99.2 87.9 87.1 464.5 442.9 428.5
Cash and cash
equivalents 115.1 105.0 117.2 16.0 27.5 33.2 131.1 132.5 150.4
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Consolidated
total
assets 480.4 460.0 458.6 115.2 115.4 120.3 595.6 575.4 578.9
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Liabilities
Segment
liabilities 49.3 41.6 48.2 33.8 28.3 25.9 83.1 69.9 74.1
Borrowings 196.0 180.3 190.7 47.2 55.5 48.2 243.2 235.8 238.9
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Consolidated
total
liabilities 245.3 221.9 238.9 81.0 83.8 74.1 326.3 305.7 313.0
--------- --------- --------- --------- --------- --------- --------- --------- ---------
iv) Seasonality
In periods prior to 2020, Group revenue and profit before tax
was weighted towards the second half of the year principally due to
passenger revenue patterns in the Ferries Division whereas
operating costs are more evenly distributed over the year. The
disruption to travel in HY 2021 and HY 2020 from the imposition of
travel restrictions by government authorities in response to the
Covid-19 pandemic has affected these seasonality weightings.
5. Dividend
HY 2021 HY 2020 FY 2020
EURm EURm EURm
Interim dividend - - -
Final dividend - - -
------- ------- -------
- - -
------- ------- -------
No dividends were paid in the six months ended 30 June 2021. The
Board did not propose a final dividend in respect of the results
for the financial year ended 31 December 2020.
No interim dividend in respect of 2021 had been declared by the
Directors at the date of approval of these Condensed Financial
Statements.
6. Non-trading items
In the prior period, the Trustee of the Group's principal
defined benefit pension scheme entered into a transaction whereby
the liabilities relating to pensions in payment at the transaction
date were transferred to a third-party insurer on payment of a
premium of EUR160.6 million. This gave rise to a non-cash
settlement loss of EUR9.3 million being the difference between the
present value of the transferred liabilities discounted at the AA
corporate bond rate used for IAS 19 valuation purposes at the
transaction date and the premium paid.
The Trustee, in agreement with the Company, also augmented the
pension benefits of certain members resulting in an augmentation
cost of EUR1.1 million being the present value of the future
benefit changes. The Group's subsidiary Irish Ferries Limited, the
sponsoring employer of the scheme, underwrites the scheme's
administration expenses and incurred expenses totalling EUR0.8
million relating to the above transaction.
7. Earnings per share
HY 2021 HY 2020 FY 2020
Number of shares '000 '000 '000
Weighted average number of ordinary shares for the
purpose of basic earnings per share 187,011 187,076 186,981
Effect of dilutive potential ordinary shares: Share
options - - -
------- --------- -------
Weighted average number of ordinary shares for the
purpose of diluted earnings per share 187,011 187,076 186,981
------- --------- -------
The denominator for the purposes of calculating both basic and
diluted earnings per share has been adjusted to reflect shares
issued during the period and excludes treasury shares. The dilutive
effect of share options capable of exercise during the period ended
30 June 2021 was 1,113,000 shares which have been excluded from the
weighted average number of ordinary shares for the purpose of
diluted earnings per share as they are antidilutive.
Loss 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:
HY FY
2021 HY 2020 2020
Earnings EURm EURm EURm
Earnings for the purpose of basic and diluted earnings
per share -- Loss for the financial period attributable
to equity holders of the parent (12.7) (11.6) (19.0)
Effect of non-trading items after tax - - 11.2
Effect of net interest income on defined benefit pension
schemes - (0.1) (0.2)
Earnings for the purpose of adjusted earnings per
share (12.7) (11.7) (8.0)
------ -------- ------
Cent Cent Cent
------ -------- ------
Basic earnings per share (6.8) (6.2) (10.2)
------ -------- ------
Diluted earnings per share (6.8) (6.2) (10.2)
------ -------- ------
Adjusted basic earnings per share (6.8) (6.2) (4.3)
------ -------- ------
Adjusted diluted earnings per share (6.8) (6.2) (4.3)
------ -------- ------
8. Property, plant and equipment
Plant,
Equipment
Assets under and Land and
construction Vessels Vehicles Buildings Total
EURm EURm EURm EURm EURm
Cost
At 31 December
2020 0.7 444.2 64.8 26.0 535.7
Additions 0.4 14.1 1.1 0.1 15.7
Disposals - (7.4) (4.5) - (11.9)
Reclassification (0.5) 0.5 - - -
Currency
adjustment - 0.9 0.2 - 1.1
------------ ------- ------------ ------------- ------
At 30 June 2021 0.6 452.3 61.6 26.1 540.6
------------ ------- ------------ ------------- ------
Accumulated
depreciation
At 31 December
2020 - 166.5 46.0 9.7 222.2
Charge for period - 13.2 1.7 0.2 15.1
Disposals - (7.4) (4.5) - (11.9)
Currency
adjustment - 0.3 0.1 - 0.4
------------ ------- ------------ ------------- ------
At 30 June 2021 - 172.6 43.3 9.9 225.8
------------ ------- ------------ ------------- ------
Carrying amount
At 30 June 2021 0.6 279.7 18.3 16.2 314.8
------------ ------- ------------ ------------- ------
At 31 December
2020 0.7 277.7 18.8 16.3 313.5
------------ ------- ------------ ------------- ------
At 30 June 2020 5.6 284.9 16.6 16.6 323.7
------------ ------- ------------ ------------- ------
9. Right-of-use assets
Plant, Equipment Land and
Vessels and Vehicles Buildings Total
EURm EURm EURm EURm
Cost
At 31 December 2020 21.0 8.0 28.8 57.8
Additions 17.2 2.4 - 19.6
Currency adjustment - - 0.5 0.5
------- ------------------- ------------------- -----
At 30 June 2021 38.2 10.4 29.3 77.9
------- ------------------- ------------------- -----
Accumulated
depreciation
At 31 December 2020 11.3 4.0 4.2 19.5
Charge for period 5.9 0.8 1.1 7.8
Currency adjustment - - - -
------- ------------------- ------------------- -----
At 30 June 2021 17.2 4.8 5.3 27.3
------- ------------------- ------------------- -----
Carrying amount
At 30 June 2021 21.0 5.6 24.0 50.6
------- ------------------- ------------------- -----
At 31 December 2020 9.7 4.0 24.6 38.3
------- ------------------- ------------------- -----
At 30 June 2020 2.3 3.9 25.5 31.7
------- ------------------- ------------------- -----
Additions of right-of-use assets include EUR0.3 million (2020:
EURnil) of directly attributable costs relating to new leases
commenced in the period.
10. Lease receivable
30 Jun 21 30 Jun 20 31 Dec 20
EURm EURm EURm
Operating activities
Current finance lease receivable 2.9 2.8 2.8
Non -- current finance lease receivable 15.1 18.0 16.6
--------- --------- ---------
Total 18.0 20.8 19.4
--------- --------- ---------
Beginning of reporting period 19.4 22.1 22.1
Additions - - -
Amounts received (1.8) (1.7) (3.6)
Net benefit recognised in period 0.4 0.4 0.9
--------- --------- ---------
End of reporting period 18.0 20.8 19.4
--------- --------- ---------
The long term receivable relates to amounts due under a bareboat
hire purchase sale agreement for the disposal of the vessel Oscar
Wilde in FY 2019. The deferred consideration has been treated as a
finance lease receivable at an amount equivalent to the net
investment in the lease. Capital amounts received in the financial
period are classified as net proceeds on disposal of property,
plant and equipment in the Condensed Consolidated Statement of Cash
Flows.
None of the lease receivable at 30 June 2021 was past due and
taking into account the payment experience up to the date of
approval of these Condensed Financial Statements together with
retention of legal title no provision for expected credit losses
was considered to be required.
11. Net cash and borrowing facilities
i) The components of the Group's net debt position at the
reporting date and the movements in the period are set out in the
following table:
Bank Lease Origination
Cash loans Loan notes liabilities fees Total
EURm EURm EURm EURm EURm
At 1 January
2021
Current assets 150.4 - - - - 150.4
Creditors due
within one
year - (87.3) - (10.7) 0.1 (97.9)
Creditors due
after one
year - (64.0) (50.0) (27.8) 0.8 (141.0)
------ ------- ---------------- ----------- ----------- -------
150.4 (151.3) (50.0) (38.5) 0.9 (88.5)
------ ------- ---------------- ----------- ----------- -------
Movements
during the
period
Cash flow (19.4) 7.8 - 7.8 - (3.8)
Non cash flow
changes
Amortisation - - - - (0.2) (0.2)
Right-of-use
assets
recognised - - - (19.3) - (19.3)
Early
termination - - - - - -
Currency
adjustment 0.1 - - (0.4) - (0.3)
------ ------- ---------------- ----------- ----------- -------
(19.3) 7.8 - (11.9) (0.2) (23.6)
------ ------- ---------------- ----------- ----------- -------
At 30 June 2021
Current assets 131.1 - - - - 131.1
Creditors due
within one
year - (83.5) - (16.4) 0.2 (99.7)
Creditors due
after one
year - (60.0) (50.0) (34.0) 0.5 (143.5)
------ ------- ---------------- ----------- ----------- -------
131.1 (143.5) (50.0) (50.4) 0.7 (112.1)
------ ------- ---------------- ----------- ----------- -------
At 30 June 2020
Current assets 132.5 - - - - 132.5
Creditors due
within one
year - (11.5) - (4.7) 0.2 (16.0)
Creditors due
after one
year - (143.5) (50.0) (27.1) 0.8 (219.8)
------ ------- ---------------- ----------- ----------- -------
132.5 (155.0) (50.0) (31.8) 1.0 (103.3)
------ ------- ---------------- ----------- ----------- -------
ii) The maturity profile and available borrowing and cash
facilities available to the Group at 30 June 2021 are set out in
the following table:
Maturity Profile
Less
On-hand than Between Between More
/ 1 1 -- 2 2 -- 5 than 5
Facility Undrawn drawn year years years years
EURm EURm EURm EURm EURm EURm EURm
Cash - - 131.1 131.1 - - -
-------- ------- ------- ----- ------- ------- --------
Committed lending
facilities
Bank overdrafts 15.4 15.4 - - - - -
Bank loans 218.5 75.0 143.5 83.5 7.5 22.5 30.0
Loan notes 50.0 - 50.0 - - 50.0 -
Leases 50.4 - 50.4 16.4 10.2 9.1 14.7
Origination fees (0.7) - (0.7) (0.2) (0.2) (0.2) (0.1)
-------- ------- ------- ----- ------- ------- --------
Committed lending
facilities 333.6 90.4 243.2 99.7 17.5 81.4 44.6
-------- ------- ------- ----- ------- ------- --------
Uncommitted lending
facilities
Bank loans 50.0
Loan notes 181.4
-------- ------- ------- ----- ------- ------- --------
Uncommitted lending
facilities 231.4
-------- ------- ------- ----- ------- ------- --------
Bank overdrafts are stated net of trade guarantee facilities
utilised of EUR0.6 million.
Following the cancellation of a contract for the construction of
a new cruise ferry, due to the insolvency of the shipbuilder, a
term loan advanced by the European Investment Bank with outstanding
principal of EUR76.0 million at 30 June 2021 became repayable. This
loan has been classified within current liabilities. This principal
was repaid out of cash resources on 2 July 2021.
At 30 June 2021 and the date of approval of these Condensed
Financial Statements, the Group satisfies the conditions for
drawing under the committed facilities.
Obligations under the Group borrowing facilities have been cross
guaranteed by the parent company and certain subsidiaries but are
otherwise unsecured except for lease obligations which are secured
by the lessors' title to leased assets.
12. Tax
Corporation tax for the interim period is estimated based on the
best estimate of the weighted average annual corporation tax rate
expected to apply to each taxable entity for the full financial
year.
The Company and subsidiaries that are Irish Resident for tax
purposes have elected to be taxed under the Irish tonnage tax
scheme. Under the tonnage tax scheme, taxable profit on eligible
activities is calculated on a specified notional profit per day
related to the tonnage of the ships utilised.
13. Financial instruments and risk management
The Group's activities expose it to a variety of financial risks
including market risk (such as interest rate risk, foreign currency
risk, commodity price risk), liquidity risk and credit risk. The
Group's funding, liquidity and exposure to interest and foreign
exchange rate risks are managed by the Group's treasury and
accounting departments. Treasury management practices are used to
manage these underlying risks.
These interim Condensed Financial Statements do not include all
financial risk management information and disclosures required in
the annual financial statements, and should be read in conjunction
with the 2020 Annual Report. There have been no changes to the risk
management procedures or policies since the 2020 year end.
i) Carrying value and fair value estimation of financial assets
and liabilities
The table below sets out the carrying value and fair values of
the Group's financial assets and liabilities at the reporting
date.
30 Jun 21 30 Jun 20 31 Dec 20
Carrying Fair Carrying Fair Carrying Fair
value value value value value value
EURm EURm EURm EURm EURm EURm
Financial
assets
Lease
receivable 18.0 18.0 20.8 20.8 19.4 19.4
Trade and
other
receivables 60.2 60.2 54.7 54.7 52.9 52.9
Cash and
cash
equivalents 131.1 131.1 132.5 132.5 150.4 150.4
--------- --------- --------- --------- --------- ---------
Total
financial
assets 209.3 209.3 208.0 208.0 222.7 222.7
--------- --------- --------- --------- --------- ---------
Financial
liabilities
Borrowings 192.8 194.1 204.0 211.9 200.4 208.4
Lease
liabilities 50.4 50.4 31.8 31.8 38.5 38.5
Trade and
other
payables 57.8 57.8 63.7 63.7 52.3 52.3
--------- --------- --------- --------- --------- ---------
Total
financial
liabilities 301.0 302.3 299.5 307.4 291.2 299.2
--------- --------- --------- --------- --------- ---------
ii) Fair value hierarchy
The Group has adopted the following fair value measurement
hierarchy for financial assets and liabilities:
-- Level 1: quoted (unadjusted) prices in active markets for identical
assets and liabilities.
-- Level 2: other techniques for which all inputs that have a significant
effect on the recorded fair value are observable, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).
-- Level 3: techniques that use inputs which have a significant effect on
the recorded fair value that are not based on observable market data.
The Group did not hold any financial assets or financial
liabilities at the reporting dates required to be carried at fair
value in the Condensed Statement of Consolidated Financial
Position.
iii) Fair value of financial assets and financial liabilities
measured at amortised cost
With the exception of the financial liabilities related to
borrowings set out in the table at (i) above it is considered that
the carrying amounts of financial assets and financial liabilities
recognised at amortised cost in these half year financial
statements approximate their fair values.
The fair value of borrowings are classified within Level 3 of
the fair value hierarchy. Fair value has been estimated based on
discounted cash flow analysis with the most significant input being
the discount rate reflecting the Group's own credit risk. The
discount rate is derived from observable market interest rates at
the reporting date and observable credit spread market movements
since inception of the borrowings. For lease liabilities the Group
considers that the incremental borrowing rate used to calculate the
carrying value includes a fair estimate of counterparty risk and
the carrying value approximates fair value.
iv) Derivative financial instruments
At 30 June 2021, 31 December 2020, and 30 June 2020 the Group
did not hold any positions relating to derivative financial
instruments.
14. Retirement benefit schemes
The assumptions used to value pension obligations were reviewed
against the background of market conditions as at 30 June 2021
leading to a change in discount and inflation rate assumptions
while demographic and other assumptions were retained at 31
December 2020 levels. Scheme assets have been valued as per
investment managers' valuations at 30 June 2021. In consultation
with the actuary to the principal Group defined benefit pension
schemes, the discount rate used in relation to the pension scheme
liabilities is 1.15% for Euro liabilities (31 December 2020: 0.70%)
and 1.85% for Sterling liabilities (31 December 2020: 1.30%).
At 30 June 2021, the Group's total obligation in respect of
defined benefit schemes totals EUR133.0 million (31 December 2020:
EUR140.8 million). The schemes held assets of EUR147.7 million (31
December 2020: EUR139.6 million), giving a net pension surplus of
EUR14.7 million (31 December 2020: EUR1.2 million net deficit).
The principal assumptions used for the purpose of the actuarial
valuations at 30 June 2021 were derived using techniques consistent
with those used for the assumptions used for the 31 December 2020
valuations. The assumptions, which were set after considering
independent actuarial advice and which are reflective of market
conditions that existed at 30 June 2021, were as follows:
30 Jun 21 30 Jun 20 31 Dec 20
Sterling Euro Sterling Euro Sterling Euro
Discount
rate 1.85% 1.15% 1.55% 0.90% 1.30% 0.70%
Inflation
rate 3.45% 1.70% 3.05% 1.10% 3.15% 1.20%
Rate of
increase of
pensions in 0.30% -
payment 3.25% 0.70% 2.85% 0.20% - 0.30% 3.05% 0.40%
Rate of
pensionable
salary 0.00% - 0.00% -
increases 1.05% 1.60% 0.85% 0.00% - 0.80% 0.95% 0.90%
-------- ------- -------- --------------- -------- --------
The movements in the net surplus on the retirement benefit
schemes were as follows:
HY 2021 HY 2020 FY 2020
Movement in retirement benefit schemes net surplus EURm EURm EURm
Opening (deficit) / surplus (1.2) 8.8 8.8
Current service cost (0.9) (0.7) (1.7)
Settlement loss - - (9.3)
Augmentation cost - - (1.1)
Employer contributions paid 0.9 1.3 2.8
Net interest income - 0.1 0.2
Actuarial gain / (loss) 15.9 (3.5) (0.8)
Currency adjustment - (0.1) (0.1)
------- ------- -------
Net surplus / (deficit) 14.7 5.9 (1.2)
------- ------- -------
Schemes in surplus 16.1 9.5 1.0
Schemes in deficit (1.4) (3.6) (2.2)
------- ------- -------
Net surplus / (deficit) 14.7 5.9 (1.2)
------- ------- -------
The movement in the net pension surplus since 31 December 2020
includes actuarial gains which are recognised in the Condensed
Consolidated Statement of Comprehensive Income.
HY
2021 HY 2020 FY 2020
Actuarial gains / (losses) recognised in the Condensed
Consolidated Statement of Comprehensive Income EURm EURm EURm
Return on scheme assets excluding amounts recognised
as finance income 0.5 (11.7) 5.2
Remeasurement adjustments on scheme liabilities
- Changes in demographic assumptions - 6.7 -
- Changes in financial assumptions 5.2 1.4 (12.0)
- Experience adjustments 10.2 0.1 6.0
---- -------- --------------
Actuarial gains / (losses) recognised in the Condensed
Consolidated Statement of Comprehensive Income 15.9 (3.5) (0.8)
---- -------- --------------
The actuarial gain arising on scheme assets, which are mainly
invested in across a number of equity and bond funds, is reflective
of market movements while there were also reductions in liabilities
attributable to the change in financial assumptions.
No provision has been made against scheme surpluses as the Group
expect, having reviewed the rules of the relevant schemes, that the
surplus will accrue to the Group in the future.
15. Net cash inflow from operating activities
HY HY
2021 2020 FY 2020
EURm EURm EURm
Operating activities
Loss for the financial period / year (12.7) (11.6) (19.0)
Adjustments for:
Finance costs (net) 1.9 1.7 7.6
Income tax expense 0.5 0.4 1.0
Retirement benefit scheme funding in excess of amounts
expensed to Income Statement - (0.6) 9.3
Depreciation, impairment and amortisation expense 23.0 19.5 41.3
Share-based payment expense less cost of options
settled 0.1 (0.5) 0.2
Gain on disposal of property, plant and equipment - - -
Increase in provisions - - 0.2
------ ------ ----------------
Operating cash flow before movements in working capital 12.8 8.9 40.6
(Increase) / decrease in inventories (1.1) 1.2 1.2
(Decrease) / increase in receivables (2.7) (0.6) 1.6
Increase in payables 9.9 6.3 7.8
------ ------ ----------------
Cash generated from operations 18.9 15.8 51.2
Income taxes paid (0.3) (0.3) (1.4)
Interest paid (2.8) (1.7) (3.7)
------ ------ ----------------
Net cash inflow from operating activities 15.8 13.8 46.1
------ ------ ----------------
At 30 June 2021 and 30 June 2020, the overall working capital
movements amounted to EUR6.1 million and EUR6.9 million
respectively, which relate to seasonal working capital inflows that
are expected to unwind in the second half of the year.
An increase in other prepayments totalling EUR4.6 million in the
period ended 30 June 2021 has been included within cash flows from
investing activities on the Condensed Consolidated Statement of
Cash Flows.
16. Related party transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation.
During the six months ended 30 June 2021 there were no material
changes to, or material transactions between Irish Continental
Group plc and its key management personnel or members of their
close family, other than in respect of remuneration. There were no
other material related party transactions in the period.
17. Contingent assets / liabilities
There have been no material changes in contingent assets or
liabilities as reported in the Group's financial statements for the
year ended 31 December 2020.
18. Impairment
Under IFRS, goodwill and other indefinite-lived intangible
assets are required to be tested at least annually for impairment.
As the Group does not have these types of assets no impairment
review is required.
In relation to assets other than those listed above, the Group
assessed those assets to determine if there were any indications of
impairment. No internal or external indications of impairment were
identified and consequently no impairment review was performed. In
assessing the existence of internal or external indications of
impairment, the Group considered the impacts of Covid-19.
19. Composition of the entity
There have been no changes in the composition of the entity
during the half year ended 30 June 2021.
20. Commitments
HY 2021 HY 2020 FY 2020
EURm EURm EURm
Commitments for the acquisition of property, plant
and equipment -- approved and contracted for, but
not accrued 17.2 3.6 1.9
------- ------- -------
21. Events after the reporting period
On 2 July 2021 the Group repaid from existing cash resources the
outstanding principal of EUR76.0 million on a term loan advanced by
the European Investment Bank. The Group has contracted to take
delivery of a ropax ferry during the second half of 2021, which is
intended to be deployed within the Group's ferry operations. The
contractual amounts due on delivery are disclosed within capital
commitments at note 20.
22. Board approval
This interim report was approved by the Board of Directors of
Irish Continental Group plc on 25 August 2021.
(END) Dow Jones Newswires
August 26, 2021 02:00 ET (06:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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