TIDMIRSH
Preliminary Statement of Results for the year ended 31 December
2021
Irish Continental Group (ICG) the leading Irish-based maritime
transport group, reports its financial performance for the year
ended 31 December 2021.
Highlights
Financial Summary
2021 2020 Change
Revenue EUR334.5m EUR277.1m +20.7%
EBITDA (pre non-trading items) EUR52.3m EUR42.1m +24.2%
EBIT (pre non-trading items) EUR(0.2)m EUR0.8m
EBIT (including non-trading items) EUR(0.2)m EUR(10.4)m +98.1%
Basic earnings per share (2.6)c (10.2)c +74.5%
Adjusted basic earnings per share (2.7)c (4.3)c +37.2%
Net debt EUR(142.2)m EUR(88.5)m (60.7%)
Net debt (pre IFRS 16) EUR(84.6)m EUR(50.0)m (69.2%)
Volume movements
2021 2020
'000 '000 Change
RoRo units 290.0 335.5 (13.6%)
Cars 203.6 137.1 +48.5%
Containers shipped (teu) 346.6 316.3 +9.6%
Port lifts 335.5 292.4 +14.7%
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This preliminary statement contains certain alternative
performance measures including EBITDA, EBIT, and adjusted earnings
per share. An explanation of these measures together with other
abbreviated terms is provided at note 10 of the Condensed Financial
Statements.
-- Revenue increased by EUR57.4 million (20.7%) to EUR334.5 million.
-- EBITDA increase of EUR10.2 million principally due to increased revenues
and a continued focus on cost optimisation.
-- During the year, the Group commenced Irish Ferries' services on the new
Dover -- Calais route. The services commenced on the 29 June 2021 with
the deployment of the Isle of Inishmore. The route was further boosted
with the introduction of the Isle of Innisfree onto the route on the 16
December 2021. The Group purchased a third ship for the route to be named
the Isle of Inisheer. This ship is expected to enter service onto the
route in the first half of 2022. The introduction of a third ship onto
the route for Irish Ferries will strengthen our position on the route and
ensure we are a viable alternative to the incumbent operators.
-- In 2020, the Group was successful in the public tender to operate a
container depot at the new Dublin Inland Port. This is an important
contract for the Group as we look to expand our container operations in
Dublin in the knowledge of the scarcity of space to expand in the core
Dublin Port area. It is testament to the quality of our container
operations in the Port area that we have been selected as the first
tenant in the new Inland Port facility. Operations in this terminal
commenced in January 2022.
-- Dublin Ferryport Terminals placed an order for five new electric
rubber-tyred gantry cranes which will be delivered and commissioned in
the second half of 2022. This is in addition to four similar units
previously commissioned. The deployment of these electric cranes will
allow us to meet our target of reducing emissions in our container
terminals by 70 per cent by 2025 (versus 2020) and reaching our target of
net zero emissions in our container terminals by 2030. Furthermore, the
delivery of these cranes and the relocation of our empty depot facility
to the Dublin Ferryport Inland Depot will increase the capacity of Dublin
Ferryport Terminals to meet our customers' requirements.
-- Year end net debt, after strategic capital expenditure of EUR41.7 million,
was EUR142.2 million, 2.6 times EBITDA under banking covenant
definitions.
-- The Group is in a strong financial position with available liquidity
comprising cash and committed bank facilities of EUR118.9 million at 31
December 2021.
Commenting on the results, Chairman John B McGuckian said;
"2021 was another challenging year for the Group, with a
continuation of travel restrictions due to the Covid-19 pandemic.
However, it was also a year of significant progress for the Group
in particular with the commencement of Irish Ferries' services on
the strategic Britain -- Continental Europe short sea route between
Dover and Calais. It has been a long-term objective of the Group to
expand into this route and its commencement in 2021 is all the more
impressive given the current difficulties in our market caused by
the pandemic related travel restrictions. I would like to take this
opportunity to thank all our colleagues who made retention of all
critical services possible through the Covid-19 pandemic that is
now hopefully behind us. As in the prior year, particular thanks go
to our colleagues on our front line in the ports, on our ships and
in our terminals. Again, this year and throughout this pandemic,
their dedication to their roles kept our ships sailing, our
terminals operating and crucially the supply lines of our Island
open."
10 March 2022
Enquiries:
--------------------------------------
Eamonn Rothwell, Chief Executive Tel: +353 1 607 5628 Email:
Officer info@icg.ie
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David Ledwidge, Chief Financial Tel: +353 1 607 5628 Email:
Officer info@icg.ie
-------------------------------------- --------------------------------------
Media enquiries:
Q4 Public Relations Tel: +353 1 475 1444 Email:
press@q4pr.ie
Results
Financial Highlights
2021 2020 Change
Revenue EUR334.5m EUR277.1m +20.7%
EBITDA (pre non-trading items) EUR52.3m EUR42.1m +24.2%
EBIT* (including non-trading items) EUR(0.2)m EUR(10.4)m +98.1%
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*Non-trading items EURnil million 31 December 2021 (31 December
2020: EUR(11.2) million)
The overall financial outcome for the Group was a loss before
tax of EUR4.1 million (2020: loss of EUR18.0 million) while
operating loss before non-trading items was EUR0.2 million (2020:
EUR0.8 million profit). EBITDA (pre non-trading items) generated
was EUR52.3 million (2020: EUR42.1 million) from total revenues of
EUR334.5 million (2020: EUR277.1 million).
EBITDA remained broadly in line with the prior year in our
Ferries Division where EBITDA before non-trading items was EUR23.2
million (2020: EUR22.3 million). The division saw increased
revenues from the easing of travel restrictions and commencement of
the Dover -- Calais service which was offset by an increase in
costs, driven primarily by higher fuel prices and increased
activity.
Performance in our Container and Terminal Division improved with
an EBITDA of EUR29.1 million (2020: EUR19.8 million) through a
continued focus on cost optimisation and increases in revenue
driven by higher volumes.
As in the prior year, when the Group also faced challenging
trading conditions, our diversified revenue streams and cost
containment measures protected our strong balance sheet. While Net
Debt increased from EUR88.5 million to EUR142.2 million, this was
primarily due to strategic capital expenditure of EUR41.7 million
and share buybacks of EUR19.8 million. It is testament to the
strength of the business and the balance sheet that, despite the
trading difficulties, we had the ability to continue investing in
the future growth of our business.
Operational Review
Irish Continental Group operates through two divisions; the
Ferries Division and the Container and Terminal Division. The
Ferries Division operates under the Irish Ferries brand, offering
passenger and RoRo freight services. The division is also engaged
in ship chartering activities with vessels chartered within the
Group and to third parties. The Container and Terminal Division
includes the intermodal shipping line Eucon as well as the
division's strategically located container terminal in Dublin and
its terminal operations in Belfast.
Ferries Division
Financial summary
2021 2020 Change
Revenue* EUR175.5m EUR141.4m +24.1%
EBITDA (pre non-trading items) EUR23.2m EUR22.3m +4.0%
EBIT** (including non-trading items) EUR(17.4)m EUR(23.5)m +26.0%
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*Includes inter-segment revenue of EUR13.8 million (2020: EUR9.6
million)
**Non-trading items EURnil million 31 December 2021 (2020:
EUR(11.2) million)
Operational Highlights
2021 2020 Change
Volumes '000 '000
Cars 203.6 137.1 +48.5%
Passengers 667.8 519.0 +28.7%
RoRo freight units 290.0 335.5 (13.6%)
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Operational Highlights
2021 2020 Change
Volumes -- Legacy Routes '000 '000
Cars 161.6 137.1 +17.9%
RoRo freight units* 259.2 335.5 (22.7%)
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*The average yield in our RoRo business has increased materially
during the year, with increased volume on the direct route to
Europe. Despite the 22.7% reduction in volumes, RoRo revenue has
fallen by 3% year on year.
Revenue in the division was 24.1% higher than the previous year
at EUR175.5 million (2020: EUR141.4 million). Revenue in the first
half of the year increased by 2.1% to EUR62.9 million (2020:
EUR61.6 million), while in the second half revenue increased by
41.1%, to EUR112.6 million (2020: EUR79.8 million). EBITDA
increased to EUR23.2 million (2020: EUR22.3 million) while EBIT was
EUR(17.4) million compared with EUR(12.3) million in 2020.
Fuel costs were EUR43.0 million, an increase of EUR10.2 million
on the prior year. The division achieved a return on capital
employed of (5.9%) (2020: (4.2%)).
In total, Irish Ferries operated 6,331 sailings in 2021 (2020:
4,501), the increase due to the reintroduction of the fastcraft
Dublin Swift and sailings on the new Irish Ferries' Dover -- Calais
service.
Car and Passenger markets
It is estimated that the overall car market, to and from the
Republic of Ireland, grew by approximately 25.8% in 2021 to 357,200
cars, while the all-island market, i.e. including routes into
Northern Ireland, is estimated to have increased by 54.0%. Irish
Ferries' car carryings during the year were up on the previous year
by 48.5% to 203,600 cars (2020: 137,100 cars). The increase in
carryings is primarily due to the gradual easing of Covid-19 travel
restrictions in place for most of the year.
The total sea passenger market (i.e. comprising car, coach and
foot passengers) to and from the Republic of Ireland increased by
11.0% on 2020 to a total of 1.2 million passengers, while the
all-island market increased by 39.5%. Irish Ferries' passenger
numbers carried increased by 28.7% at 667,800 (2020: 519,000). In
the first half of the year, Irish Ferries' passenger volumes fell
by 43.2% and in the second half of the year, which is seasonally
more significant, the increase in passenger numbers was 87.7%.
RoRo Freight
The RoRo freight market between the Republic of Ireland, and the
UK and France, fell in 2021. The total number of trucks and
trailers was down 10.1%, to approximately 926,200 units. This was
primarily due to the non-implementation of the Northern Ireland
Protocol, which resulted in reduced checks on goods arriving into
Northern Ireland from Britain. On an all-island basis, the market
decreased by approximately 0.9% to 1.83 million units, clearly
showing the distortion in the level playing field between goods
arriving into Northern Ireland versus the Republic.
Irish Ferries' carryings (including Dover -- Calais), at 290,000
freight units (2020: 335,500 freight units), decreased by 13.6% in
the year with volumes down 15.2% in the first half and down 12.3%
in the second half.
Chartering
The Group continued to charter a number of ships to third
parties during 2021. Overall external charter revenues were EUR8.1
million in 2021 (2020: EUR5.9 million). Of our seven owned LoLo
container vessels, four are currently on year-long charters to the
Group's container shipping subsidiary Eucon on routes between
Ireland and the Continent whilst three are chartered to third
parties. The Oscar Wilde continues on a bareboat hire purchase
agreement with MSC Mediterranean Shipping Company SA.
Container and Terminal Division
Financial summary
2021 2020 Change
Revenue* EUR174.0m EUR146.5m +18.8%
EBITDA (pre non-trading items) EUR29.1m EUR19.8m +47.0%
EBIT (including non-trading items) EUR17.2m EUR13.1m +31.3%
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*Includes inter-segment revenue of EUR1.2 million (2020: EUR1.2
million)
Operational Highlights
2021 2020 Change
Volumes '000 '000
Containers shipped (teu) 346.6 316.3 +9.6%
Port lifts 335.5 292.4 +14.7%
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Revenue in the division increased to EUR174.0 million (2020:
EUR146.5 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
72% (2020: 70%) of shipping revenue generated from imports into
Ireland. 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.
EBITDA in the division increased by 47.0% to EUR29.1 million
(2020: EUR19.8 million) while EBIT grew 31.3% to EUR17.2 million
(2020: EUR13.1 million).
In Eucon, overall container volumes shipped were up 9.6%
compared with the previous year at 346,600 teu (2020: 316,300 teu).
There was a strong recovery on volumes for all trade lanes in 2021
as supply chains adjusted to the new Covid-19 operating
environment. To facilitate this increased demand, we chartered a
sixth vessel into the fleet in January 2021. The revenue gains were
offset by strong increases in the cost base, particularly ship
charter costs and fuel costs which we recovered from our customers
by increasing rates and the continued application of the flexible
bunker and fuel surcharges.
Containers handled at the Group's terminals in Dublin Ferryport
Terminals (DFT) and Belfast Container Terminal (BCT) were up 14.7%
at 335,500 lifts (2020: 292,400 lifts). DFT's volumes were up 15%,
while BCT's lifts were up 14% We have seen a strong increase in
volumes across the entire customer base and the resultant increased
revenues were partially offset by increased energy and labour
costs.
Group Finance Review
Cash Flow
A summary cash flow is presented below:
2021 2020
EURm EURm
Operating loss (EBIT)* (0.2) (10.4)
Non-trading items - 11.2
Depreciation 52.5 41.3
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EBITDA* (pre non-trading items) 52.3 42.1
------------------------------------------------------------ ------ ------
Working capital movements 11.7 10.6
Pension payments in excess of service costs 0.6 (1.1)
Other movements 1.4 (0.4)
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Cash generated from operations 66.0 51.2
------------------------------------------------------------ ------ ------
Interest paid (8.4) (3.7)
Tax paid (0.8) (1.4)
Capital expenditure excluding strategic capital expenditure (13.5) (10.8)
------ ------
Free cash flow before strategic capital expenditure* 43.3 35.3
Strategic capital expenditure (41.7) (19.3)
Return of ship contract deposit - 33.0
------ ------
Free cash flow after strategic capital expenditure 1.6 49.0
------------------------------------------------------------ ------ ------
Proceeds on disposal of property, plant and equipment 2.8 4.9
Share issue 0.7 0.2
Share buyback (19.8) (1.7)
------ ------
Net cash flows (14.7) 52.4
------------------------------------------------------------ ------ ------
*Additional information in relation to these Alternative
Performance Measures ("APMs") is disclosed in note 10 of the
Condensed Financial Statements.
EBITDA for the year was EUR52.3 million (2020: EUR42.1 million).
There was a net inflow of EUR11.7 million due to positive working
capital movements, refunds of previous payments in excess of
service costs to the Group's pension funds of EUR0.6 million and
other net cash inflows amounting to EUR1.4 million, yielding cash
generated from operations amounting to EUR66.0 million (2020:
EUR51.2 million).
Interest paid was EUR8.4 million (2020: EUR3.7 million) while
taxation paid was EUR0.8 million (2020: EUR1.4 million).
Capital expenditure outflows amounted to EUR55.2 million (2020:
EUR30.1 million) which included EUR41.7 million of strategic
capital expenditure. Strategic capital expenditure included the
purchase of a seventh container vessel (the CT Daniel) for EUR12.8
million, the purchase of the Isle of Innisfree, a deposit payment
for the Isle of Inisheer and rubber-tyred gantry cranes for Dublin
Ferryport Terminal.
As in the prior year, no dividends were paid during the year.
There was EUR19.8 million (2020: EUR1.7 million) expended in buying
back the Group's equity.
The above cash flows resulted in a year-end net debt of EUR142.2
million (2020: EUR88.5 million), which comprised gross borrowings
of EUR123.1 million (2020: EUR200.4 million), lease obligations of
EUR57.6 million (2020: EUR38.5 million) offset by cash balances of
EUR38.5 million (2020: EUR150.4 million). The key net debt / EBITDA
(pre non-trading items) ratio was 2.6 times (2020: 2.1 times) under
banking covenant definitions.
Balance Sheet
A summary balance sheet is presented below:
2021 2020
EURm EURm
Property, plant & equipment and intangible assets 330.1 314.7
Right-of-use assets 57.2 38.3
Long term receivable 13.6 16.6
Retirement benefit surplus 6.7 1.0
Other assets 65.8 57.9
Cash and bank balances 38.5 150.4
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Total assets 511.9 578.9
-------------------------------------------------- ----- -----
Non-current borrowings 153.3 140.9
Retirement benefit obligations 1.4 2.2
Other non-current liabilities 1.5 0.7
Current borrowings 27.4 98.0
Other current liabilities 78.6 71.2
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Total liabilities 262.2 313.0
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Total equity 249.7 265.9
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Total equity and liabilities 511.9 578.9
-------------------------------------------------- ----- -----
The total net surplus of all defined benefit pension schemes at
31 December 2021 was EUR5.3 million in comparison to a EUR1.2
million deficit at 31 December 2020. The movement principally
reflects a net actuarial gain of EUR7.1 million. Movement in
property, plant and equipment mainly relates to the acquisition of
new vessels, partially offset by depreciation. The increase in
other assets relates primarily to increased asset prepayments which
includes a deposit for a further vessel and new rubber-tyred gantry
cranes. The movement in current borrowings principally relates to
the repayment during 2021 of EUR87.5 million worth of loans, of
which EUR72.0 million was repaid early following the cancellation
of the shipbuilding contract with FSG.
Shareholders' equity decreased to EUR249.7 million from EUR265.9
million at 31 December 2021. The movement includes the loss for the
financial period of EUR4.9 million, actuarial gains arising on
retirement benefit schemes of EUR7.1 million and buyback of equity
of EUR19.8 million.
Financing
The borrowing facilities available to the Group at 31 December
2021 were as follows;
Borrowing
Facilities
Committed Committed
facilities facilities
Facility Committed drawn undrawn
EURm EURm EURm EURm
Private
placement loan
notes 242.8 50.0 50.0 -
Bank term loans 63.8 63.8 63.8 -
Revolving credit 125.0 75.0 10.0 65.0
Overdraft and
other 16.0 16.0 0.6 15.4
-------- --------- ---------------- ---------------
447.6 204.8 124.4 80.4
---------------- -------- --------- ---------------- ---------------
At 31 December 2021, the Group had total lending facilities of
EUR447.6 million available of which EUR204.8 million were committed
facilities. Of these, EUR124.4 million have been utilised, of which
EUR7.3 million are classified as repayable within one year. The
interest rates on all Group borrowings at 31 December 2021,
comprising loan notes and term loans, has been fixed at contracted
rates at the date of drawdown with the relevant lender eliminating
exposure to interest rate risk on borrowings. The average interest
rate on borrowings at 31 December 2021 was 1.60% (2020: 1.60%) for
remaining terms of between four and ten years. In addition to
borrowings, the Group has recognised lease liabilities at 31
December 2021 relating to right-of-use assets amounting to EUR57.6
million.
These facilities, together with undrawn committed facilities of
EUR80.4 million and cash generated from operations, will be used to
support the long-term strategic development of the Group.
Fuel
2021 2020 Change
Fuel costs EUR55.1m EUR32.8m +68.0%
------------ -------- -------- ------
Group fuel costs in 2021 amounted to EUR55.1 million (2020:
EUR32.8 million). Bunker consumption was 129,400 tonnes in 2021
(2020: 107,300 tonnes). The increase in consumption was primarily
due to increased activity levels in the Container and Terminal
Division and the Ferries Division's new service on the English
Channel. The average cost per tonne of heavy fuel oil (HFO) fuel in
2021 was 40% higher than in 2020 while marine gas oil (MGO) was 34%
higher than in 2020.
In the Container and Terminal Division, bunker costs above a
base level are offset to a large extent by the application of
prearranged price adjustments with our customers. Similar
arrangements are in place with freight customers in the Ferries
Division. In the passenger sector, changes in bunker costs are
included in the ticket price to the extent that market conditions
will allow.
Dividend and Share Buyback
On 1 July 2020, the Group announced that due to the effect of
Covid-19, the Directors considered it prudent not to proceed with
the 2019 final dividend previously announced. With the continuation
of travel restrictions throughout 2020 and the consequential
effects on the Group's financial results, no interim dividend was
declared or paid relating to 2020. As travel restrictions continued
throughout most of 2021, the Board did not declare or pay any
interim dividend relating to 2021.
Following the easing of travel restrictions in 2022, and the
consequent improvement in passenger revenues together with the
continuation of strong performance in all other revenue streams,
the Board has considered it appropriate to recommence the payment
of dividends. The Board is proposing the payment of a dividend of
9.00 cent per ordinary share on 7 July 2022 to shareholders on the
register at the close of business on 10 June 2022. Irish dividend
withholding tax will be deducted where appropriate.
In November 2021, the Group bought back 4.6 million shares which
were cancelled. The total consideration paid for these shares was
EUR19.8 million (2020: EUR1.7 million).
Exit of United Kingdom from the European Union
On 31 December 2020, the UK and EU ended the post Brexit
transition period. While trade flows have decreased between Ireland
and Britain, our customers have gained more experience with custom
formalities and many are returning to the more efficient and
reliable short sea services. The change in trade flows and volumes
throughout the year has been managed by having a flexible fleet
that has allowed us to adjust capacity on our direct continental
RoRo and container shipping services. While over the course of the
entire year (excluding our new service on Dover -- Calais) this has
led to a reduction in RoRo volumes, the change in yield mix has
maintained RoRo revenues at levels only slightly behind the prior
year.
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.
Strategic Developments
The Group has continued to progress a number of key strategic
developments during the year. In keeping with our progress over the
last number of years, we have placed a significant focus on
enhancing our approach to ESG and sustainability. We have rolled
out a number of exciting initiatives across the Group, highlights
of which include the significant progress we have made in reducing
the emissions of our Terminal Operations. With the investment we
have made and continue to make in more environmentally friendly
terminal equipment, we are on course to reduce the emissions of our
terminals by 70 per cent by 2025. The progress made to date and the
expected future investment have allowed us to target net zero
emissions in our terminal operations by 2030. This year also sees
the publication of our environmental policy and the development of
our climate risk framework. As a business, we recognise the growing
importance of providing transparency over our efforts to create
value in a sustainable manner, based on a set of topics which we
have identified as material to our business and our
stakeholders.
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. The service was further
expanded by the introduction of the Isle of Innisfree onto the
route on 16 December 2021. The service offered will be further
expanded by the planned introduction of the Isle of Inisheer in the
first half of 2022. This is an exciting development for the Group
and in line with our long-term ambitions. The route is a strategic
short sea route between Britain and Continental Europe. Following
the introduction of the Isle of Inisheer, Irish Ferries will offer
up to 30 sailings per day on the English Channel.
In the prior year, the Group took delivery of and commissioned
two electrically powered remotely operated rubber-tyred gantries
(RTGs) at its Dublin Ferryport Terminal following the previous
successful commissioning of two similar units. This increases the
total number of electric gantries in our Dublin Terminal to four
continuing our transition to this more environmentally efficient
mode of operation. Following the successful deployment of these
environmentally friendly electric RTGs, DFT placed an order for an
additional five of these cranes which will be delivered and
commissioned in the second half of 2022. The deployment of these
electric cranes will allow us to meet our target of reducing
emissions in our terminals by 70 per cent in 2025 (versus 2020) and
reaching our target of net zero emission in our terminals by 2030.
Furthermore, the delivery of these cranes and the relocation of our
empty depot facility to the Dublin Ferryport Inland Depot will
increase the capacity of Dublin Ferryport Terminals to meet the
need of the market.
Belfast Container Terminal operates the sole container terminal
at Belfast under a services concession agreement with Belfast
Harbour Commissioners (BHC) at a 27 acre site in Belfast Harbour.
The GBP40 million re-investment project by BHC commenced in 2019
and continued into 2021. The project includes extensive civil works
and the delivery of two new gantry cranes along with eight new
electrically operated RTGs. As per the investment in DFT, this
investment is essential to reducing emissions in our terminal
operations. The project is now nearing completion and the
deployment of the final three RTGs is expected to be completed by
the end of 2022.
During 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 became operational in January 2022 and 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. The Dublin Inland Port is located adjacent to
Dublin Airport with direct access to the M50 Motorway (Dublin Ring
Road) and Dublin Port via the Port Tunnel.
Strategy and the Environment
The Group is conscious that its activities have an environmental
impact but is happy to note that reducing that impact aligns with
our overall strategy. In the prior year, the Group proceeded with
the significant investments in installing exhaust gas cleaning
systems (EGCS) and the ongoing program of electrification of heavy
plant at our container terminals. Both of these investments, while
reducing harmful emissions, also bring health and safety benefits
to our operatives and align with the strategic objective of
delivering sustained and profitable growth. This investment
continued in 2021, including the order of five additional electric
cranes in our Dublin Ferryport Terminal. In addition to the
continued investment, the Group has this year enhanced our target
setting across the organisation, developed a climate risk framework
and published for the first time our environmental policy.
The Group gathers significant data in relation to its operations
which can be harnessed to further drive awareness of the impact of
individual actions. The Group currently collects various data
related to its environmental impact of its operations for external
reporting purposes. In recognition of the powerful effect that data
can have on creating awareness of individual actions, in the prior
year, the Group commenced a program to collate and harness this
data as a tool to promote environmental responsibility within the
workforce. While we recognise that we still have a way to go, we
consider the steps taken over the last number of years as creating
the foundation from which we can further develop our approach to
sustainability, ESG and strong reporting in the years ahead.
However, for certain aspects the Group will require the shipping
sector as a whole to work together. This particularly relates to
global regulation under the auspices of the International Maritime
Organisation setting common standards and key equipment suppliers
adopting the latest technologies. As a small operator in a global
market, the Group will only apply proven technologies which
generate an economic return. The International Maritime
Organisation and the European Union have recently set out
decarbonisation goals for the maritime industry. These are set out
in our Sustainability and ESG Report.
The Group is committed to continuous improvement in both the big
and small things that we do to help our environment and appreciate
the support of our stakeholders in this regard.
Current Trading and Outlook
2022 Trading to date
1/1/22 -- 5/3/22 1/1/21 -- 5/3/21 Change
Volumes '000 '000
Cars 35.9 7.3 +391.8%
RoRo freight units 94.0 38.4 +144.8%
Containers shipped (teu) 57.1 63.9 (10.6%)
Port lifts 55.8 56.2 (0.7%)
---------------- ---------------- -------
2022 Trading to date
1/1/22 -- 5/3/22 1/1/21 -- 5/3/21 Change
Volumes -- Legacy Routes '000 '000
Cars 19.2 7.3 +163.0%
RoRo freight units 48.9 38.4 +27.3%
---------------- ---------------- -------
Since our last update to the market, in the Trading Update of 24
November 2021, trading to the end of 2021 in our freight business
was strong with a continuation of the trends that have seen freight
customers returning to the short sea routes. It was a disappointing
end to 2021 for our passenger business with the reintroduction of
Covid-19 travel restrictions following the emergence of the Omicron
variant.
In the period from 1 January 2022 to 5 March 2022, trading has
been strong in the Ferries Division with a continuation of the
positive trends in our freight business and a lifting of most
Covid-19 travel restrictions. Irish Ferries carried 35,900 cars in
the period, an increase of 392% over the same period in the prior
year. Excluding the new Dover -- Calais service, on a like-for-like
basis car carryings grew by 163%. While these increases are
encouraging, it is over a seasonally less significant time of the
year for passenger travel. While the early months are typically a
quiet period for passenger travel, the increase in volumes seen in
2022 to date over the prior year are an encouraging indicator for
post Covid travel trends.
RoRo volumes in our Ferries Division have also started strongly
in 2022. Overall, Irish Ferries RoRo volumes are up 145% on the
same period in the prior year. Excluding the new Dover -- Calais
service, RoRo volumes on the legacy routes are up 27% on the prior
year. This is a continuation of the trend of a return of freight
volumes to the short sea routes. While the beginning of 2022 has
also been encouraging in our RoRo business, still of concern to the
Group is the lack of implementation of appropriate checks on goods
arriving into Northern Ireland from Britain that are destined for
the Republic of Ireland, unlike the required checks on goods
arriving directly into the Republic from Britain.
The Container and Terminal Division has had a weather disrupted
start to 2022 which has materially reduced the number of sailings
in the container business. The number of sailings reduced by 17%
versus the same period in the prior year and this resulted in a
10.6% reduction in containers shipped. Port lifts in our container
terminals decreased overall by 1%.
Our new service on Dover -- Calais continues to perform in line
with our expectations and we are encouraged by the very positive
reception received on the route from customers.
As in the prior year, there is still some uncertainty over the
possible emergence of further waves of Covid infections and any
effect they may have on travel patterns. Also of concern is the
conflict in eastern Europe and the extent to which fuel prices will
remain at current historically high levels. While we will pass
these increased costs through to customers, the underlying effect
of the conflict on economic growth is uncertain. Nevertheless, with
our significant investment in a flexible modern fleet and in our
container terminal footprint combined with our strong balance
sheet, this places us in a very good position to benefit from any
continued growth in all our markets.
Condensed Consolidated Income Statement
for the year ended 31 December 2021
SHYSHYSHY Notes 2021 2020
EURm EURm
Revenue 2 334.5 277.1
Depreciation, impairment and amortisation (52.5) (41.3)
Employee benefits expense (20.8) (18.0)
Other operating expenses 2 (261.4) (217.0)
------- ------------- -------
Operating (loss) / profit before non-trading
items (0.2) 0.8
Non-trading items 5 - (11.2)
------- ------------- -------
Operating loss (0.2) (10.4)
Finance income 0.1 0.2
Finance costs (4.0) (7.8)
------------- -------
Loss before taxation (4.1) (18.0)
Income tax expense 3 (0.8) (1.0)
------- ------------- -------
Loss for the financial year: all attributable to equity
holders of the parent (4.9) (19.0)
------------- -------
Earnings per ordinary share
-- expressed in euro cent per share
Basic 4 (2.6) (10.2)
------- ------------- -------
Diluted 4 (2.6) (10.2)
------- ------------- -------
Condensed Consolidated Statement of Comprehensive Income
for the year ended 31 December 2021
2021 2020
Notes EURm EURm
Loss for the financial year (4.9) (19.0)
----- ------
Items that may be reclassified subsequently to profit
or loss:
Exchange differences on translation of foreign
operations 1.3 (1.2)
Items that will not be reclassified subsequently to
profit or loss:
Actuarial gain / (loss) on defined benefit pension
schemes 8 7.1 (0.8)
Deferred tax on defined benefit pension schemes (0.9) 0.3
----- ------
Other comprehensive income for the financial year 7.5 (1.7)
----- ------
Total comprehensive income for the financial year:
all attributable to equity holders of the parent 2.6 (20.7)
----- ------
Condensed Consolidated Statement of Financial Position
as at 31 December 2021
2021 2020
Notes EURm EURm
Assets
Non-current assets
Property, plant and equipment 328.2 313.5
Intangible assets 1.9 1.2
Right-of-use assets 57.2 38.3
Retirement benefit surplus 8 6.7 1.0
Long term receivable 13.6 16.6
Deferred tax asset 0.1 0.3
407.7 370.9
-------------------------------------- ----- ----- -----
Current assets
Inventories 3.8 1.9
Trade and other receivables 61.9 55.7
Cash and bank balances 6 38.5 150.4
----- ----- -----
104.2 208.0
-------------------------------------- ----- ----- -----
Total assets 511.9 578.9
----- -----
Equity and liabilities
Equity
Share capital 11.9 12.2
Share premium 20.4 19.7
Other reserves (8.1) (9.3)
Retained earnings 225.5 243.3
----- -----
Equity attributable to equity holders 249.7 265.9
-------------------------------------- ----- ----- -----
Non-current liabilities
Borrowings 6 115.8 113.1
Lease liabilities 6 37.5 27.8
Deferred tax liabilities 1.3 0.5
Provisions 0.2 0.2
Retirement benefit obligations 8 1.4 2.2
----- ----- -----
156.2 143.8
-------------------------------------- ----- ----- -----
Current liabilities
Borrowings 6 7.3 87.3
Lease liabilities 6 20.1 10.7
Trade and other payables 75.5 69.2
Provisions 3.1 2.0
106.0 169.2
-------------------------------------- ----- ----- -----
Total liabilities 262.2 313.0
----- -----
Total equity and liabilities 511.9 578.9
----- -----
Condensed Consolidated Statement of Changes in Equity
for the year ended 31 December 2021
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2021 12.2 19.7 (9.3) 243.3 265.9
Loss for the financial year - - - (4.9) (4.9)
Other comprehensive income - - 1.3 6.2 7.5
------- ------- -------- -------- ------
Total comprehensive income for the financial year - - 1.3 1.3 2.6
------- ------- -------- -------- ------
Employee share-based payments expense - - 1.3 - 1.3
Share issue - 0.7 - - 0.7
Share buyback (0.3) - 0.3 (19.8) (19.8)
Settlement of employee equity plans through market
purchase - - - (1.0) (1.0)
Transferred to retained earnings on exercise of share
options - - (1.7) 1.7 -
------- ------- -------- -------- ------
(0.3) 0.7 1.2 (17.8) (16.2)
------------------------------------------------------ ------- ------- -------- -------- ------
Balance at 31 December 2021 11.9 20.4 (8.1) 225.5 249.7
------- ------- -------- -------- ------
Analysed as follows:
Share capital 11.9
Share premium 20.4
Other reserves (8.1)
Retained earnings 225.5
------
249.7
------------------------------------------------------ ------- ------- -------- -------- ------
Other Reserves comprise the following:
Share
Capital Options Translation
Reserve Reserve Reserve Total
EURm EURm EURm EURm
Balance at 1 January 2021 7.5 5.1 (21.9) (9.3)
------- ------- ----------- -----
Employee share-based payments expense - 1.3 - 1.3
Other comprehensive income - - 1.3 1.3
Share buyback 0.3 - - 0.3
Transferred to retained earnings on exercise of share
options - (1.7) - (1.7)
------- ------- ----------- -----
0.3 (0.4) 1.3 1.2
------------------------------------------------------ ------- ------- ----------- -----
Balance at 31 December 2021 7.8 4.7 (20.6) (8.1)
------- ------- ----------- -----
Condensed Consolidated Statement of Changes in Equity
for the year ended 31 December 2020
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2020 12.2 19.5 (7.3) 263.5 287.9
Loss for the financial year - - - (19.0) (19.0)
Other comprehensive income - - (1.2) (0.5) (1.7)
------- ------- -------------------- -------- -----------------
Total comprehensive income for the financial year - - (1.2) (19.5) (20.7)
------- ------- -------------------- -------- -----------------
Employee share-based payments expense - - 1.9 - 1.9
Share issue - 0.2 - - 0.2
Share buyback - - - (1.7) (1.7)
Settlement of employee equity plans through market
purchase - - - (1.7) (1.7)
Transferred to retained earnings on exercise of share
options - - (2.7) 2.7 -
------- ------- -------------------- -------- -----------------
- 0.2 (2.0) (20.2) (22.0)
------------------------------------------------------ ------- ------- -------------------- -------- -----------------
Balance at 31 December 2020 12.2 19.7 (9.3) 243.3 265.9
------- ------- -------------------- -------- -----------------
Analysed as follows:
Share capital 12.2
Share premium 19.7
Other reserves (9.3)
Retained earnings 243.3
-----------------
265.9
------------------------------------------------------ ------- ------- -------------------- -------- -----------------
Other Reserves comprise the following:
Share
Capital Options Translation
Reserve Reserve Reserve Total
EURm EURm EURm EURm
Balance at 1 January 2020 7.5 5.9 (20.7) (7.3)
------- ------- ----------- -------------
Employee share-based payments expense - 1.9 - 1.9
Other comprehensive income - - (1.2) (1.2)
Share buyback - - - -
Transferred to retained earnings on exercise of share
options - (2.7) - (2.7)
------- ------- ----------- -------------
- (0.8) (1.2) (2.0)
Balance at 31 December 2020 7.5 5.1 (21.9) (9.3)
------- ------- ----------- -------------
Condensed Consolidated Statement of Cash Flows
for the year ended 31 December 2021
2021 2020
Notes EURm EURm
Loss for the financial year (4.9) (19.0)
Adjustments for:
Finance costs (net) 3.9 7.6
Income tax expense 0.8 1.0
Retirement benefit scheme movements 7 0.6 9.3
Depreciation of property, plant and equipment 31.9 29.3
Depreciation of right-of-use assets 20.3 9.5
Impairment charges - 2.3
Amortisation of intangible assets 0.3 0.2
Share-based payment expense less market purchase cost 0.3 0.2
Increase in provisions 1.1 0.2
Working capital movements 7 11.7 10.6
----- ------- ------
Cash generated from operations 66.0 51.2
Income taxes paid (0.8) (1.4)
Interest paid (8.4) (3.7)
------- ------
Net cash inflow from operating activities 56.8 46.1
------- ------
Cash flow from investing activities
Net proceeds on disposal of property, plant and equipment 2.8 4.9
Lease inception costs (0.3) -
Return of vessel contract deposit - 33.0
Purchases of property, plant and equipment and intangible
assets 7 (55.2) (30.1)
Net cash (outflow) / inflow from investing activities (52.7) 7.8
------- ------
Cash flow from financing activities
Share buyback (19.8) (1.7)
Repayment of lease liabilities 7 (19.8) (9.2)
Repayment of bank loans (87.5) (3.7)
Drawdown of bank loans 10.0 -
Proceeds on issue of ordinary share capital 0.7 0.2
Net cash outflow from financing activities (116.4) (14.4)
Net (decrease) / increase in cash and cash equivalents (112.3) 39.5
Cash and cash equivalents at the beginning of the
year 150.4 110.9
Effect of foreign exchange rate changes 0.4 -
------- ------
Cash and cash equivalents at the end of the year 6 38.5 150.4
----- ------- ------
Notes to the Condensed Financial Statements
for the year ended 31 December 2021
1. Accounting policies
The financial information presented in this report has been
prepared using accounting policies consistent with International
Financial Reporting Standards (IFRSs) as adopted by the European
Union and as set out in the Group's annual financial statements in
respect of the year ended 31 December 2020 except as noted below.
The financial information does not include all the information and
disclosures required in the annual financial statements. The 2021
Annual Report will be distributed to shareholders and made
available on the Company's website www.icg.ie in due course. It
will also be filed with the Company's annual return in the
Companies Registration Office. The auditors have reported on the
financial statements for the year ended 31 December 2021 and their
report was unqualified and did not contain any matters to which
attention was drawn by way of emphasis. The financial information
for the year ended 31 December 2020 represents an abbreviated
version of the Group's statutory financial statements on which an
unqualified audit report was issued and which have been filed with
the Companies Registration Office.
Basis of preparation and accounting policies
The financial information contained in this Preliminary
Statement has been prepared in accordance with the accounting
policies set out in the last annual financial statements. New and
revised accounting standards and interpretations have been issued
which are set out below.
Standards effective for the Group from 1 January 2021
Standard Description Effective Date for
periods commencing
---------------------- ------------------------------ ----------------------
IFRS 16 (amendment) Covid-19 related rent 1 June 2020
concessions
---------------------- ------------------------------ ----------------------
IFRS 9, IAS 39, IFRS Interest Rate Benchmark Reform 1 January 2021
7, IFRS 4 and IFRS 16
(amendments)
---------------------- ------------------------------ ----------------------
The above amended standards have been applied in the preparation
of the financial statements for the year ended 31 December 2021 but
did not have any material impact on the results or financial
position of the Group.
Standards effective for the Group from 1 January 2022 or
later
Standard Description Effective
Date for
periods
commencing
------------ -------------------------------------------------------- ----------
IAS 1 Classification of liabilities as current or non-current 1 January
(amendments) 2024
------------ -------------------------------------------------------- ----------
IAS 1 Disclosure of Accounting Policies 1 January
(amendments) 2023
------------ -------------------------------------------------------- ----------
IFRS 17 Insurance Contracts 1 January
2023
------------ -------------------------------------------------------- ----------
IFRS 4 Extension of the Temporary Exemption from Applying 1 January
(amendments) IFRS 9 2023
------------ -------------------------------------------------------- ----------
IAS 12 Income Taxes -- Deferred Tax related to Assets and 1 January
(amendment) Liabilities arising from a Single Transaction 2023
------------ -------------------------------------------------------- ----------
IAS 16 Property, Plant and Equipment - Proceeds before Intended 1 January
(amendments) Use 2022
------------ -------------------------------------------------------- ----------
Annual 1 January
Improvements 2022
to IFRS
Standards
2018--2020
------------ -------------------------------------------------------- ----------
IFRS 3 Reference to the Conceptual Framework 1 January
(amendments) 2022
------------ -------------------------------------------------------- ----------
IAS 37 Onerous Contracts - Cost of Fulfilling a Contract 1 January
(amendments) 2022
------------ -------------------------------------------------------- ----------
IAS 8 Definition of Accounting Estimates 1 January
(amendments) 2023
------------ -------------------------------------------------------- ----------
The above standards and amendments standards have not been
applied in the preparation of the financial statements for the year
ended 31 December 2021. They are not expected to have a material
impact on the results or financial position of the Group when
applied in future periods.
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 and
Terminal.
Revenue has been disaggregated into categories which reflect how
the nature, amount, timing and uncertainty of revenue and cash
flows are affected by economic factors. 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 or a business to business relationship as this
impacts directly on the uncertainty of cash flows.
i) Revenue analysis
By business segment:
2021 2020
EURm EURm
Ferries
Passenger 59.0 33.7
Freight 94.6 92.2
Charter and other 21.9 15.5
------ ------
175.5 141.4
----------------------- ------ ------
Container and Terminal
Freight 174.0 146.5
------ ------
Inter-segment revenue (15.0) (10.8)
------ ------
Total 334.5 277.1
----------------------- ------ ------
By geographic origin of booking:
2021 2020
EURm EURm
Ireland 135.6 116.2
United Kingdom 64.1 55.1
Netherlands 73.7 58.6
Belgium 36.7 31.7
France 4.5 1.3
Other 19.9 14.2
----- -----
334.5 277.1
--------------- ----- -----
No single external customer in the current or prior financial
year amounted to 10 per cent of the Group's revenues.
ii) (Loss) / profit for the financial year
Ferries Container & Terminal Group Total
2021 2020 2021 2020 2021 2020
EURm EURm EURm EURm EURm EURm
Operating (loss) /
profit (17.4) (12.3) 17.2 13.1 (0.2) 0.8
Finance income - 0.2 0.1 - 0.1 0.2
Finance costs (2.0) (6.4) (2.0) (1.4) (4.0) (7.8)
Non-trading items - (11.2) - - - (11.2)
------ ------ ---------- ---------- ----- ------
(Loss) / profit before
tax (19.4) (29.7) 15.3 11.7 (4.1) (18.0)
Income tax expense (0.1) (0.3) (0.7) (0.7) (0.8) (1.0)
------ ------ ---------- ---------- ----- ------
(Loss) / profit for the
financial year (19.5) (30.0) 14.6 11.0 (4.9) (19.0)
----------------------- ------ ------ ---------- ---------- ----- ------
iii) Other operating expenses
Ferries Container & Terminal Group Total
2021 2020 2021 2020 2021 2020
EURm EURm EURm EURm EURm EURm
Fuel 43.1 23.8 12.0 9.0 55.1 32.8
Labour 28.7 22.9 9.7 8.4 38.4 31.3
Port costs 44.0 38.9 33.7 29.5 77.7 68.4
Haulage - - 50.0 43.9 50.0 43.9
Other 20.7 20.4 34.5 31.0 55.2 51.4
Inter-segment (1.2) (1.2) (13.8) (9.6) (15.0) (10.8)
----- ----- ----------- --------- ------ ------
Other operating expenses 135.3 104.8 126.1 112.2 261.4 217.0
------------------------ ----- ----- ----------- --------- ------ ------
iv) Statement of Financial Position
Ferries Container & Terminal Group Total
2021 2020 2021 2020 2021 2020
EURm EURm EURm EURm EURm EURm
Assets
Segment assets 367.0 341.4 106.4 87.1 473.4 428.5
Cash and cash equivalents 29.9 117.2 8.6 33.2 38.5 150.4
----- ----- ---------- ---------- ------ -----
Consolidated total assets 396.9 458.6 115.0 120.3 511.9 578.9
------------------------- ----- ----- ---------- ---------- ------ -----
Liabilities
Segment liabilities 49.8 48.2 31.7 25.9 81.5 74.1
Borrowings and lease
liabilities 140.0 190.7 40.7 48.2 180.7 238.9
----- ----- ---------- ---------- ------ -----
Consolidated total
liabilities 189.8 238.9 72.4 74.1 262.2 313.0
------------------------- ----- ----- ---------- ---------- ------ -----
3. Income tax expense
2021 2020
EURm EURm
Current tax 0.7 1.2
Deferred tax 0.1 (0.2)
---- -----
Income tax expense for the year 0.8 1.0
---------------------------------- ---- -----
The Company and its Irish tax resident subsidiaries, where
appropriate, 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 vessels 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. The income tax expense for the year includes a
current tax charge of EUR0.7 million and a deferred tax charge of
EUR0.1 million.
The total expense for the year is reconciled to the accounting
profit as follows:
2021 2020
EURm EURm
Loss before tax (4.1) (18.0)
Tax at the domestic income tax rate of 12.5% (2020:
12.5%) - -
Losses not eligible for surrender under loss provisions 2.4 1.9
Effect of tonnage relief (2.2) (1.6)
Difference in effective tax rates 0.8 (0.3)
Items for which no tax deduction is available - 0.8
Other items (0.2) 0.2
----- ------
Income tax expense recognised in the Consolidated
Income Statement 0.8 1.0
-------------------------------------------------------- ----- ------
4. Earnings per share
2021 2020
Number of shares '000 '000
Weighted average number of ordinary shares for the
purpose of basic earnings per share 186,715 186,981
Effect of dilutive potential ordinary shares: Share
options - -
------- -------
Weighted average number of ordinary shares for the
purpose of diluted earnings per share 186,715 186,981
---------------------------------------------------- ------- -------
The denominator for the purposes of calculating both basic and
diluted earnings per share has been adjusted to reflect shares
issued during the year and excludes treasury shares.
The earnings used in both the adjusted basic and adjusted
diluted earnings per share have been adjusted to take into account
the net interest on defined benefit pension obligations and the
effect of non-trading items after tax.
The prior year reported adjusted basic earnings per share and
adjusted diluted earnings per share has been represented to include
the tax effect on non-trading items.
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:
2021 2020
Earnings 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 (4.9) (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 (5.0) (8.0)
----- ------
Cent Cent
----- ------
Basic earnings per share (2.6) (10.2)
--------------------------------------------------------- ----- ------
Diluted earnings per share (2.6) (10.2)
--------------------------------------------------------- ----- ------
Adjusted basic earnings per share (2.7) (4.3)
--------------------------------------------------------- ----- ------
Adjusted diluted earnings per share (2.7) (4.3)
--------------------------------------------------------- ----- ------
Diluted earnings per ordinary share
Diluted earnings per ordinary share is calculated by adjusting
the weighted average number of ordinary shares outstanding to
assume the exercise of all vested share option awards at 31
December. Share option awards which have not yet satisfied the
required performance conditions for vesting are excluded from the
calculation. The dilutive effect of vested share options is
calculated as the difference in the average market value during the
period and the option price expressed as a percentage of the
average market value. Of the 2,790,000 (2020: 2,296,500) vested
options at 31 December 2021, the dilutive effect is nil ordinary
shares (2020: nil ordinary shares).
5. Non-trading items
2021 2020
EURm EURm
Non-trading expense - (11.2)
-------------------- ------ ------
There were no non-trading items in the year ended 31 December
2021. On 9 December 2020, 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 schemes administration
expenses and incurred expenses totalling EUR0.8 million relating to
the above transaction.
6. Net cash and borrowing facilities
i) The components of the Group's net cash position at the
reporting date and the movements in the period are set out in the
following table:
Loan Lease Origination
Cash Bank Loans Notes Obligations Fees Total
EURm 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)
-------------- ------- -------------------- ------ ----------- ----------- -------
Changes from
cash flows (112.3) 77.5 - 19.8 - (15.0)
Non-cash flow
changes:
Amortisation - - - - (0.2) (0.2)
Lease
liabilities
recognised - - - (38.5) - (38.5)
Lease
remeasurement - - - 0.3 - 0.3
Currency
adjustment 0.4 - - (0.7) - (0.3)
------- -------------------- ------ ----------- ----------- -------
(111.9) 77.5 - (19.1) (0.2) (53.7)
-------------- ------- -------------------- ------ ----------- ----------- -------
At 31 December
2021
Current assets 38.5 - - - - 38.5
Creditors due
within one
year - (7.5) - (20.1) 0.2 (27.4)
Creditors due
after one
year - (66.3) (50.0) (37.5) 0.5 (153.3)
------- -------------------- ------ ----------- ----------- -------
38.5 (73.8) (50.0) (57.6) 0.7 (142.2)
-------------- ------- -------------------- ------ ----------- ----------- -------
ii) The maturity profile and available borrowing and cash
facilities available to the Group at 31 December 2021 are set out
in the following table:
Maturity Profile
On-hand Less Between Between More
/ than 1 1 -- 2 2 -- 5 than 5
Facility Undrawn drawn year years years years
EURm EURm EURm EURm EURm EURm EURm
Cash - - 38.5 38.5 - - -
-------- ------- ------- ------ ------- ------- --------
Committed
lending
facilities
Bank
overdrafts 15.4 15.4 - - - - -
Bank loans 138.8 65.0 73.8 7.5 7.5 32.5 26.3
Loan notes 50.0 - 50.0 - - 50.0 -
Origination
fees (0.7) - (0.7) (0.2) (0.2) (0.2) (0.1)
Leases 57.6 - 57.6 20.1 9.1 9.1 19.3
-------- ------- ------- ------ ------- ------- --------
Committed
lending
facilities 261.1 80.4 180.7 27.4 16.4 91.4 45.5
-------- ------- ------- ------ ------- ------- --------
Uncommitted
lending
facilities
Bank loans 192.8
Loan notes 50.0
--------
Uncommitted
lending
facilities 242.8
------------ -------- ------- ------- ------ ---------------- --------
Bank overdrafts facilities are stated net of trade guarantee
facilities utilised of EUR0.6 million.
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 the leased assets.
7. Cash flow components
2021 2020
EURm EURm
Pension scheme movements
Retirement benefit obligations -- current service
cost 1.7 1.7
Retirement benefit obligations -- payments (1.1) (2.8)
Retirement benefit obligations -- settlement loss - 9.3
Retirement benefit obligations -- augmentation cost - 1.1
------ ------
Total retirement benefit scheme movements 0.6 9.3
------ ------
Repayments of lease liabilities
Lease payments (21.1) (10.3)
Interest element of lease payments 1.3 1.1
------ ------
Capital element of lease payments (19.8) (9.2)
Purchases of property, plant and equipment and intangible
assets
Purchases of property, plant and equipment (45.6) (34.6)
Purchases of intangible assets (1.0) (1.0)
(Increase) / decrease in capital asset prepayments (8.6) 5.5
------ ------
Total purchases of property, plant and equipment and
intangible assets (55.2) (30.1)
Changes in working capital
(Increase) / decrease in inventories (1.9) 1.2
Decrease in receivables 2.5 1.6
Increase in payables 11.1 7.8
------ ------
Total working capital movements 11.7 10.6
------ ------
8. Retirement benefit schemes
The principal assumptions used for the purpose of the actuarial
valuations were as follows:
2021 2020
Sterling Euro Sterling Euro
Discount rate 1.85% 1.20% 1.30% 0.70%
Inflation rate 3.60% 2.00% 3.15% 1.20%
Rate of increase of
pensions in payment 2.20% - 3.40% 1.00% 3.05% 0.30% - 0.40%
Rate of pensionable
salary increases 1.10% 0.00% - 1.20% 0.95% 0.00% - 0.90%
------------- ------------- -------- -------------
The average life expectancy used in all schemes at age 60 is as
follows:
2021 2020
Male Female Male Female
Current retirees 27.1 years 29.3 years 27.2 years 29.1 years
Future retirees 28.9 years 31.3 years 28.9 years 31.3 years
---------- ---------- ---------- ----------
The amount recognised in the balance sheet in respect of the
Group's defined benefit obligations, is as follows:
Schemes with Liabilities in Schemes with Liabilities in
Sterling Euro
2021 2020 2021 2020
Equities 13.5 10.9 68.9 62.9
Bonds 15.1 13.3 27.4 28.2
Property - - 1.0 4.8
Insurance
contracts - - 10.9 12.3
Other 3.4 3.1 5.6 4.1
-------------- ------------- -------------- -------------
Market value of
scheme assets 32.0 27.3 113.8 112.3
Present value of
scheme
liabilities (28.3) (28.0) (112.2) (112.8)
-------------- ------------- -------------- -------------
Surplus /
(deficit) in
schemes 3.7 (0.7) 1.6 (0.5)
---------------- -------------- ------------- -------------- -------------
The movement during the year is reconciled as follows:
2021 2020
Movement in retirement benefit schemes EURm EURm
Opening (deficit) / surplus (1.2) 8.8
Current service cost (1.7) (1.7)
Settlement loss - (9.3)
Augmentation cost - (1.1)
Employer contributions paid 1.1 2.8
Net interest income 0.1 0.2
Actuarial gain / (loss) 7.1 (0.8)
Other (0.1) (0.1)
----- -----
Net surplus / (deficit) 5.3 (1.2)
--------------------------------------- ----- -----
Schemes in surplus 6.7 1.0
Schemes in deficit (1.4) (2.2)
----- -----
Net surplus / (deficit) 5.3 (1.2)
--------------------------------------- ----- -----
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 2021, the material
transactions between Irish Continental Group plc and its key
management personnel were the remuneration of employees and
Directors and the provision of professional services at arm's
length basis.
10. General information
The Condensed Financial Statements in this preliminary
announcement do not constitute full statutory financial statements
("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 2021 will be annexed to the annual return for 2021. The
auditors have made a report, without any qualification on their
audit, of the financial statements in respect of the financial year
ended 31 December 2021 and the Directors approved the financial
statements in respect of the financial year ended 31 December 2021
on 9 March 2022. A copy of the financial statements in respect of
the year ended 31 December 2020 has been annexed to the annual
return for 2021 filed at the Companies Registration Office.
The 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 Act 2014, and the Listing Rules of
Euronext Dublin and the UK Listing Authority.
The financial statements have been prepared on the historical
cost basis.
Certain financial measures set out in our Preliminary Statement
of Results for the year ended 31 December 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 Company'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 interest, tax, depreciation, Eliminates the effects of financing and accounting
impairment 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.
----------- -------------------------------------------------------------- ---------------------------------------------------
Terms and abbreviations
---------------------------------------------------------------------------
teu 20 foot equivalent unit, an industry standard measurement
for container units.
---------------- ---------------------------------------------------------
RoRo unit Roll on, Roll off freight unit of any length either
accompanied or unaccompanied carried on Ropax ferries.
---------------- ---------------------------------------------------------
LoLo unit Lift on, Lift off container unit of any size.
---------------- ---------------------------------------------------------
Ropax A cruise ferry capable of carrying both passengers
and RoRo freight.
---------------- ---------------------------------------------------------
Non-trading item 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.
---------------- ---------------------------------------------------------
ICG Unit ICG Unit is a stock exchange trading unit of ICG equity
with each unit comprising one ordinary share and up
to ten redeemable shares (if any in issue).
---------------- ---------------------------------------------------------
11. Events after the Reporting Date
The Board is proposing a final dividend of 9.00 cent per
ordinary share amounting to EUR16.5 million out of the
distributable reserves of the Company.
There have been no material events affecting the Group since 31
December 2021.
12. Board Approval
This preliminary announcement was approved by the Board of
Directors of Irish Continental Group plc on 9 March 2022.
13. Annual Report and Annual General Meeting
The Group's Annual Report and notice of Annual General Meeting,
which will be held on Wednesday 11 May 2022, will be notified to
shareholders in April 2022.
(END) Dow Jones Newswires
March 10, 2022 02:00 ET (07:00 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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