TIDMIRSH
Thursday 25 August 2022
HALF-YEARLY FINANCIAL REPORT
FOR THE HALF YEARED 30 JUNE 2022
Irish Continental Group plc (ICG), the leading Irish-based
maritime transport group, reports its financial performance for the
half year ended 30 June 2022.
This half-yearly financial report references Alternative
Performance Measures (APMs) which are not defined under
International Financial Reporting Standards and which are explained
in the Appendix to the half year result.
Highlights
Financial summary
HY 2022* HY 2021** Change %
Revenue EUR263.1m EUR141.6m +85.8%
EBITDA*** EUR47.3m EUR12.7m +272.4%
Operating profit / (loss) EUR17.4m EUR(10.3)m
Profit / (loss) before tax EUR15.4m EUR(12.2)m
Basic earnings per share 8.0c (6.8)c
Interim dividend 4.64c nil +100.0%
Net debt*** EUR154.5m EUR112.1m +37.8%
Net debt (pre-IFRS 16)*** EUR105.9m EUR61.7m +71.6%
--------- ---------- --------
* HY 2022: Half Year up to 30 June 2022, ** HY 2021: Half Year
up to 30 June 2021
*** Additional information in relation to these APMs is
disclosed in the Appendix
Volume movements
HY 2022 HY 2021
'000 '000 Change %
Cars 214.2 29.8 +618.8%
RoRo freight 330.2 126.7 +160.6%
Containers shipped (teu*) 169.3 176.7 (4.2%)
Port lifts 164.9 165.5 (0.4%)
-------- ------- --------
*teu: twenty-foot equivalent units
The HY 2022 result is reported against the background of a
gradual return towards pre-pandemic travel patterns after the
disruption of the last two years. The Group has continued to focus
on strategic development and has maintained a strong liquidity
position.
Key highlights in HY 2022 include;
-- Group revenue generated totalling EUR263.1 million, EUR121.5 million more
than HY 2021.
-- Operating profit generated was EUR17.4 million, compared to an operating
loss of EUR(10.3) million in HY 2021.
-- EBITDA generated of EUR47.3 million, EUR34.6 million more than HY 2021.
-- Gross cash balances of EUR38.6 million (31 December 2021: EUR38.5
million).
-- Net debt at EUR154.5 million, EUR12.3 million higher than at the
beginning of the year.
-- The Directors have declared an interim dividend of 4.64 cent per share
(2021: EURnil) payable on 7 October 2022 to shareholders on the register
on 16 September 2022.
-- Acquisition and commissioning completed of the ropax vessel, the Isle of
Inisheer, which is now one of three vessels serving the Dover -- Calais
route.
-- Acquisition of container vessel, the CT Pachuca, which is being operated
within the Group's container services.
-- Further investment in environmentally friendly port equipment at Dublin
Ferryport Terminals and commencement of operations at Dublin Ferryport
Inland Depot.
Commenting on the results, Chairman John B. McGuckian noted;
"HY 2022 was one of significant improvement in Group performance
following the challenging trading environment over the previous two
years following the imposition by governments of travel
restrictions in early 2020 as preventative measures during the
Covid-19 pandemic.
The gradual return of passenger travel towards more historic
patterns and the continuing support of our freight customers
together with the new ferry service on Dover -- Calais drove HY
2022 revenues to a record level of EUR263.1 million. However, the
Group also had to deal with the challenges of cost inflation
particularly energy prices. Nevertheless, the Group reported a
profit before tax of EUR15.4 million, EUR27.6 million ahead of last
year.
On a strategic level, the Group continues to invest in its
businesses, with over EUR50.0 million expended on strategic assets
in the half year period. The Dover -- Calais service, which
commenced on 29 June 2021 was expanded to a three vessel service in
May 2022 and now offers up to 30 sailings per day. We continue the
expansion and modernisation of our container terminals with the
latest automated and environmentally friendly equipment.
The improvement in revenue performance has continued to date.
However, in the near term, the Group is cautious regarding
inflation pressures and the associated macro-economic impact
together with the challenges in passing cost increases through the
logistics chain."
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 2022 HY 2021 Change % FY 2021*
Revenue EUR263.1m EUR141.6m +85.8% EUR334.5m
EBITDA EUR47.3m EUR12.7m +272.4% EUR52.3m
Operating profit / (loss) EUR17.4m EUR(10.3)m EUR(0.2)m
--------- ---------- ---------
* FY 2021 = Year End up to 31 December 2021
ICG reports its results for HY 2022 against the background of a
gradual return towards pre-pandemic travel patterns after the
disruption of the last two years.
The Group recorded revenue of EUR263.1 million compared with
EUR141.6 million in HY 2021, an increase of 85.8%. Earnings before
interest, tax, depreciation and amortisation (EBITDA) were EUR47.3
million compared with EUR12.7 million in HY 2021. Group fuel costs
increased by EUR35.3 million (155.5%) to EUR58.0 million from
EUR22.7 million. Operating profit was EUR17.4 million compared with
a EUR(10.3) million loss in HY 2021. A profit before tax of EUR15.4
million is reported compared with a loss before tax of EUR(12.2)
million in HY 2021.
There was a net finance charge of EUR2.0 million (2021: EUR1.9
million) which includes net bank interest payable of EUR1.4 million
(2021: EUR1.3 million), lease interest EUR0.7 million (2021: EUR0.6
million) and net pension interest income of EUR0.1 (2021: EURnil).
The tax charge amounted to EUR0.9 million (2021: EUR0.5 million).
Basic EPS was 8.0c compared with (6.8)c in HY 2021. Adjusted EPS
amounted to 8.0c versus (6.8)c for HY 2021.
Operational Review
Ferries Division
Financial Summary
HY 2022 HY 2021 Change % FY 2021
Revenue* EUR167.9m EUR62.9m +166.9% EUR175.5m
EBITDA EUR29.8m EUR(0.6)m EUR23.2m
Operating profit / (loss) EUR5.7m EUR(18.9)m EUR(17.4)m
--------- ---------- ----------
* Includes intersegment revenue of EUR15.2 million (HY 2021:
EUR5.8 million) (FY 2021: EUR13.8 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 EUR167.9 million (2021: EUR62.9
million) while EBITDA was EUR29.8 million (2021: EUR(0.6) million).
Operating profit was EUR5.7 million compared to a loss of EUR(18.9)
million in HY 2021.
The performance of the ferries operations in HY 2022 was
significantly improved on HY 2021 as travel patterns gradually
returned towards pre-pandemic levels after the disruption caused by
Covid-19 across 2020 and 2021. The impact of the Dover -- Calais
operations, which commenced on 29 June 2021, can also be seen in
the result for the period as the service moved to a three vessel
operation with the addition of the Isle of Inisheer.
Irish Ferries commenced services on the Dover -- Calais route on
29 June 2021, initially with one vessel, the Isle of Inishmore. The
Dover -- Calais route is now served by three vessels. The Rosslare
-- Pembroke route previously served by the Isle of Inishmore is now
operated by the chartered vessel Blue Star 1.
Volumes - Total
HY 2022 HY 2021 Change % FY 2021
Car volumes ('000) 214.2 29.8 +618.8% 203.6
Passenger volumes ('000) 894.4 132.8 +573.5% 667.8
RoRo freight volumes ('000) 330.2 126.7 +160.6% 290.0
-------- ------- -------- -------
Volumes -- Legacy Routes
HY 2022 HY 2021 Change % FY 2021
Car volumes ('000) 113.9 29.8 +282.2% 161.6
Passenger volumes ('000) 421.2 132.8 +217.2% 546.3
RoRo freight volumes ('000) 145.8 126.7 +15.1% 259.2
-------- ------- -------- -------
In HY 2022, total cars carried were 214,200, up 618.8% on the
same period in HY 2021. Total passenger carryings were 894,400, an
increase of 573.5% on HY 2021. This increase in carryings reflects
a gradual return to normal travel patterns, versus a full six-month
period of travel restrictions in HY 2021 in response to the
Covid-19 pandemic. The increase also reflects the impact of six
full months of trading on the Dover -- Calais route, which
commenced on 29 June 2021.
Freight carryings in HY 2022 were 330,200 units, an increase of
160.6% over HY 2021, while freight revenues increased 94.3%. These
increases also reflect the impact of the Dover -- Calais
operations.
Chartering
HY 2022 HY 2021 Change % FY 2021
Charter revenue EUR23.3m EUR8.8m +164.8% EUR20.7m
-------- ------- -------- --------
The division owns eight container vessels, five of which are
chartered intra division and three chartered externally to third
parties. The increase in revenue primarily relates to a strong
charter market driven by increased global trade and the addition of
two vessels in the division. 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 2022 HY 2021 Change % FY 2021
Depreciation, impairment and
amortisation EUR24.1m EUR18.3m +31.7% EUR40.6m
Employee benefits expense EUR9.5m EUR7.9m +20.3% EUR15.7m
Other operating costs EUR128.6m EUR55.6m +131.3% EUR135.5m
--------- -------- -------- ---------
Total operating costs EUR162.2m EUR81.8m +98.3% EUR191.8m
--------- -------- -------- ---------
Costs in the division increased by EUR80.4 million in HY 2022
compared to HY 2021. This increase was principally attributable to
the operational costs associated with the Dover -- Calais route and
fuel costs. Total divisional fuel cost increased to EUR48.3 million
from EUR17.1 million in HY 2021 due to higher global fuel prices
and increased consumption in comparison with HY 2021.
Container and Terminal Division
Financial Highlights
HY 2022 HY 2021 Change % FY 2021
Revenue* EUR111.0m EUR85.2m +30.3% EUR174.0m
EBITDA EUR17.5m EUR13.3m +31.6% EUR29.1m
Operating profit EUR11.7m EUR8.6m +36.0% EUR17.2m
--------- -------- -------- ---------
* Includes intersegment revenue of EUR0.6 million (HY 2021:
EUR0.6 million) (FY 2021: EUR1.2 million)
Operational Highlights
HY 2022 HY 2021 Change % FY 2021
Volumes '000 '000 '000
Containers shipped (teu) 169.3 176.7 (4.2%) 346.6
Port lifts 164.9 165.5 (0.4%) 335.5
-------- ------- -------- -------
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 30.3% to EUR111.0 million
(2021: EUR85.2 million), EBITDA increased to EUR17.5 million (2021:
EUR13.3 million), while operating profit increased to EUR11.7
million (2021: EUR8.6 million).
Total containers shipped by Eucon were down 4.2% at 169,300 teu
(2021: 176,700 teu). This decrease was driven by weather disruption
in the first quarter of the year and ongoing congestion at European
ports. Fuel costs increased to EUR9.7 million from EUR5.6 million
in HY 2021 due to increases in global fuel prices. Vessel charter
rates also increased versus the corresponding period last year in
line with global rates. Other costs increased in line with
inflation.
Containers handled at our container terminals in Dublin and
Belfast fell 0.4% to 164,900 lifts (2021: 165,500 lifts). Dublin
Ferryport Terminals' activity was down 1.0%, and activity at
Belfast Container Terminal was up 0.6%.
Statement of Financial Position
A summary Statement of Financial Position as at 30 June 2022 is
presented below:
30 Jun 2022 30 Jun 2021 31 Dec 2021
EURm EURm EURm
Property, plant and equipment and
intangible assets 371.4 316.5 330.1
Right-of-use assets 47.7 50.6 57.2
Long term receivable 12.1 15.1 13.6
Retirement benefit surplus 31.2 16.1 6.7
Other assets 103.1 66.2 65.8
Cash and bank balances 38.6 131.1 38.5
----------- ----------- ------------
Total assets 604.1 595.6 511.9
----------- ----------- ------------
Non-current borrowings 137.2 109.5 115.8
Non-current lease liabilities 31.4 34.0 37.5
Retirement benefit obligations 0.9 1.4 1.4
Other non-current liabilities 2.5 1.4 1.5
Current borrowings 7.3 83.3 7.3
Current lease liabilities 17.2 16.4 20.1
Other current liabilities 156.5 80.3 78.6
----------- ----------- ------------
Total liabilities 353.0 326.3 262.2
----------- ----------- ------------
Total equity 251.1 269.3 249.7
----------- ----------- ------------
Total equity and liabilities 604.1 595.6 511.9
----------- ----------- ------------
The analysis of key movements in the period since 31 December
2021 is set out below.
The principal movements in property, plant and equipment and
intangible assets relate to the purchases of the Isle of Inisheer
and CT Pachuca vessels, 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 depreciation charges offset by the
addition of new container leases. 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 measure pension obligations were
reviewed against the background of market conditions as at 30 June
2022. This review resulted in a change in discount and inflation
rate assumptions while other assumptions were retained at 31
December 2021 levels. A net actuarial gain of EUR25.5 million arose
in HY 2022, comprising losses on assets below previous return
assumptions together with reductions in liabilities attributable to
the change in financial assumptions.
Shareholders' equity increased to EUR251.1 million from EUR249.7
million over the period. The movements primarily comprised of the
profit for the financial period of EUR14.5 million, net actuarial
gains of EUR25.5 million arising on retirement benefit schemes less
share buybacks totalling EUR18.2 million and provision for the 2021
final dividend of EUR16.1 million.
Cash Flow and Financing
A summary of cash flows in the half year to 30 June 2022 is
presented below:
HY 2022 HY 2021 FY 2021
EURm EURm EURm
Operating profit / (loss) 17.4 (10.3) (0.2)
Depreciation, impairment and amortisation 29.9 23.0 52.5
------- ------- -------
EBITDA* 47.3 12.7 52.3
------- ------- -------
Working capital movements 23.4 6.1 11.7
Pension payments in excess of service costs 0.6 - 0.6
Other movements (2.2) 0.1 1.4
------- ------- -------
Cash generated from operations 69.1 18.9 66.0
------- ------- -------
Interest paid (1.6) (2.8) (8.4)
Tax paid (0.8) (0.3) (0.8)
Intangible asset additions (0.1) (0.6) -
Capital expenditure excluding strategic capital
expenditure (10.2) (10.2) (13.5)
------- ------- -------
Free cash flow before strategic capital
expenditure* 56.4 5.0 43.3
------- ------- -------
Strategic capital expenditure (51.6) (10.4) (41.7)
Free cash flow after strategic capital expenditure* 4.8 (5.4) 1.6
--------------------------------------------------- ------- ------- -------
Proceeds on disposal of property, plant and
equipment 1.5 1.4 2.8
Share issue 0.1 0.2 0.7
Share buyback (17.0) - (19.8)
------- ------- -------
Net cash flows (10.6) (3.8) (14.7)
Opening net debt (142.2) (88.5) (88.5)
Lease liability non-cash movements (1.5) (19.3) (38.5)
Translation / other (0.2) (0.5) (0.5)
------- ------- -------
Closing net debt (154.5) (112.1) (142.2)
------- ------- -------
*Additional information in relation to these Alternative
Performance Measures (APMs) is disclosed in the Appendix.
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 2022 increased to
EUR154.5 million from EUR142.2 million at 31 December 2021.
Cash generated from operations in the period amounted to EUR69.1
million, a EUR50.2 million improvement on the prior period. Total
capital expenditure including intangibles amounted to EUR61.9
million, of which EUR44.2 million related to the acquisition and
commissioning of vessels with the balance spent on other assets.
Overall net cash outflows in the period of EUR10.6 million,
combined with the recognition of lease liabilities of EUR1.5
million, mainly relating to container 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
Bank
Origination Loans & Lease
Cash Fees PP Notes Liabilities Net Debt
EURm EURm EURm EURm EURm
At 31 December 2021 38.5 0.7 (123.8) (57.6) (142.2)
Lease liability
non-cash
movements - - - (1.5) (1.5)
Cash flows 0.2 - (21.2) 10.4 (10.6)
Translation / other (0.1) (0.2) - 0.1 (0.2)
----- ----------- --------- ------------ --------
At 30 June 2022 38.6 0.5 (145.0) (48.6) (154.5)
----- ----------- --------- ------------ --------
The borrowing facilities available to the Group at 30 June 2022
were as follows;
Borrowing Facilities
Committed Committed
facilities facilities
Facility Committed drawn undrawn
EURm EURm EURm EURm
Revolving credit 125.0 75.0 35.0 40.0
Private placement 264.8 50.0 50.0 -
Bank loans 60.0 60.0 60.0 -
Lease liabilities 48.6 48.6 48.6 -
Overdraft and other 15.4 15.4 - 15.4
-------- --------- ----------- -----------
513.8 249.0 193.6 55.4
-------- --------- ----------- -----------
At 30 June 2022, the Group had total lending facilities of
EUR513.8 million available, of which EUR249.0 million were
committed facilities. EUR193.6 million of the committed facilities
were drawn. In addition to the committed lines of credit, the Group
had arranged uncommitted facilities of EUR264.8 million with
utilisation dates expiring within two years.
Dividend and Share Buyback
Following the easing of travel restrictions and the consequent
improvement in passenger revenues together with the continuation of
strong performance in all other revenue streams, the Board
considered it appropriate to recommence the payment of dividends.
The Company paid a final dividend in respect of financial year 2021
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. The total
amount paid was EUR16.1 million.
The Directors have declared an interim dividend of 4.64 cent per
share (2021: EURnil) payable on 7 October 2022 to shareholders on
the register on 16 September 2022. The estimated amount payable
will be EUR8.2 million.
In the period ended 30 June 2022, the Company bought back
4,260,000 of its shares on the market for a total consideration of
EUR17.0 million. In the period since 30 June 2022 up to the
publication of this report, the Company bought back a further
920,000 shares for a total consideration of EUR3.3 million, of
which EUR1.2 million was contracted for at 30 June 2022.
Fuel
HY 2022 HY 2021 Change % FY 2021
Fuel costs EUR58.0m EUR22.7m +155.5% EUR55.1m
-------- -------- -------- --------
Group fuel costs in the first half of 2022 amounted to EUR58.0
million (2021: EUR22.7 million). The movement in fuel costs was due
to higher global fuel costs and an increase in sailings associated
with the Dover -- Calais service.
The Group has in place fuel surcharge mechanisms for freight
customers, which mitigate the effects of euro movements in 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.
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
route represents a strategic milestone in the development of the
Group. A second vessel was introduced onto the route in December
2021, with a third vessel commencing sailings in May 2022. With the
three vessel service operating up to 30 sailings per day, the Group
offers a competitive alternative to the existing operators on that
route. [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 RTGs will be delivered in Q3 2022, with two RTGs
commissioned during Q4 2022 and the remaining three commissioned in
Q1 2023. The Group has also placed an order for a new ship to shore
crane for delivery in 2023 as a replacement for an existing unit
which is nearing end of life. 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, developments are continuing in
conjunction with Belfast Harbour Commissioners as part of their
GBP40 million modernisation programme for the container terminal.
Completion of the final phase, including the construction of two
new RTG stacks and commissioning of the final three of eight RTGs
already delivered is now expected in the first half of 2023
following some delays.
Sustainability
The Group continues to focus on sustainable development across
its operations. In the 2021 Annual Report, the Group committed to a
70% reduction in Scope 1 and 2 emissions from its Dublin (DFT) and
Belfast (BCT) terminal operations by 2025 and has targeted net zero
DFT and BCT terminal operations by 2030. To reinforce these
commitments made, five new electric rubber-tyred gantry (RTG)
cranes at DFT, two of which are new additions to the fleet to meet
increased operational demands while the remaining three cranes are
to replace end of life diesel units. We have also further enhanced
the electrical infrastructure at DFT, including investment in new
medium voltage switchgear and transformers to support the ongoing
electrification of the terminal.
The Group employs a range of technical and operational measures
to improve the environmental performance of its vessels, as
outlined in the Sustainability and ESG section of the 2021 Annual
Report. The Group is closely monitoring any regulatory developments
by the International Maritime Organization (IMO), European
Commission and UK Government as proposals to help achieve
decarbonisation goals for the maritime industry are further refined
and formalised. The Group has aligned its decarbonisation strategy
with the IMO and EU goals and will adjust accordingly to achieve,
at a minimum, all required targets. These regulatory targets
currently set are:
-- A 40% reduction in carbon intensity from shipping operations by 2030
compared to 2008 levels (IMO)
-- A 50% reduction in all greenhouse gas (GHG) emissions from shipping
operations by 2050 compared to 2008 levels (IMO)
-- A 6% reduction in GHG intensity from shipping operations by 2030 compared
to 2020 levels (EU)
-- A 75% reduction in GHG intensity from shipping operations by 2050
compared to 2020 levels (EU)
-- The Group looks forward to reporting on its progress against these
targets in the 2022 Annual Report.
The Company is participating in a number of feasibility studies
into initiatives towards achievement of the above industry
targets.
The Group first outlined its approach to managing climate risks
in the 2021 Annual Report. In line with its Climate Risk Framework,
the Group has begun its stakeholder engagement program, including
supplier engagement through the Group's published Supplier Code of
Conduct to help identify material climate-related issues affecting
its key stakeholder groups. Further details on the rollout of the
Group's Climate Risk Framework will be provided in the 2022 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 62 to 71 of the
2021 Annual Report are categorised as: commercial & market,
economic & political, business continuity, health & safety,
operational compliance, environmental protection, human capital,
financial loss, financial compliance, fraud, volatility, retirement
benefit scheme and information security & cyber threats.
These risks areas remain the most likely risks to affect the
Group during the second half of the financial year and the Group
will actively manage these and all other risks through its risk
management structure.
Going Concern
The Company had previously reported in its 2021 Annual Report
that it had modelled a number of scenarios for its businesses
including a re-imposition of travel restrictions in 2022. The
Company notes that no such restrictions have been introduced in HY
2022 and passenger revenue and volumes have increased significantly
on the prior period.
In the period since the removal of travel restrictions up to the
date of approval of these Condensed Financial Statements, the Group
has experienced increased passenger revenues aligned with its
previous projections. The Group has updated these projections based
on the continued gradual return of previous travel patterns.
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
There have been no material events affecting the Company since
30 June 2022.
Current Trading and Outlook
Trading volumes in the period 1 July to 20 August 2022 are as
follows:
H2 2022 Trading to date
1/7/22 -- 20/8/22 1/7/21 -- 20/8/21 Change %
Volumes '000 '000
Cars 161.8 46.2 +250.2%
RoRo freight units 100.8 41.0 +145.9%
Containers shipped (teu) 45.8 48.8 (6.1%)
Port lifts 44.4 47.9 (7.3%)
----------------- ----------------- --------
H2 2022 Trading to date
1/7/22 -- 20/8/22 1/7/21 -- 20/8/21 Change %
Volumes -- Legacy Routes '000 '000
Cars 79.2 36.7 +115.8%
RoRo freight units 40.0 37.9 +5.5%
----------------- ----------------- --------
Cumulatively to 20 August 2022, trading volumes are:
FY 2022 Trading to date
1/1/22 -- 20/8/22 1/1/21 -- 20/8/21 Change %
Volumes '000 '000
Cars 376.0 76.0 +394.7%
RoRo freight units 431.0 167.7 +157.0%
Containers shipped (teu) 215.1 225.5 (4.6%)
Port lifts 209.3 213.4 (1.9%)
----------------- ----------------- --------
FY 2022 Trading to date
1/1/22 -- 20/8/22 1/1/21 -- 20/8/21 Change %
Volumes -- Legacy Routes '000 '000
Cars 193.1 66.4 +190.8%
RoRo freight units 185.8 164.5 +12.9%
----------------- ----------------- --------
The trading performance for the year to date across all our
business has been strong. Despite significant cost pressures in
both divisions, we have managed to maintain and grow profitability.
The Group's cost base has been affected by higher global prices, in
particular fuel prices and charter rates. The Group so far has been
successful on passing these costs through to customers. It is
essential that the Group continues to do so.
The Ferries Division has enjoyed the benefit of a return to more
normal travel patterns although we are yet to reach pre-pandemic
levels. Cars volumes increased on our legacy routes by 190.8%
versus the same period in the prior year.
Trading in the key summer months of July and August was ahead of
expectations.
Our RoRo freight business, despite the disruption of Brexit has
continued to grow. RoRo volume growth on our legacy routes has
increased by 12.9% year to date. This has been primarily driven by
a return of freight traffic to the landbridge routes at the expense
of the direct European routes.
Following the entry of the Isle of Inisheer to service on the
Dover -- Calais route in April 2022, we have been operating a full
service with three vessels on the route. Performance on the route
continues to match our expectations.
The Container and Terminal Division has continued to increase
its level of profitability despite the significant cost pressures
faced by the division. The division has successfully passed on
increased fuel and charter costs to customers. Dublin Ferryport
Inland Depot has been operational since January 2022, allowing for
the storage and handling of empty containers off-site therefore
allowing increased capacity at our shoreside container terminal in
Dublin Port.
Board Changes
The Board of Irish Continental Group plc is pleased to announce
the co-option to the Board of Éimear Moloney as a non-executive
Director. The appointment is effective immediately.
Éimear has over 20 years' experience in capital markets and most
recently held a senior executive position with Zurich Life
Assurance (Ireland) plc, with responsibility for managing asset
allocation across various geographic portfolios. She has acquired
extensive knowledge of capital markets, macro-economics and
strategy to drive shareholder returns. Éimear holds non-executive
directorships at listed companies Kingspan Group plc, where she is
a member of the Audit & Compliance Committee, and Hostelworld
Group plc, where she chairs the Audit Committee. She also holds a
non-executive directorship at privately owned Chanelle
Pharmaceuticals Group and was previously a non-executive Director
at Yew Grove Reit plc. Éimear holds a B.A. Accounting and Finance
and MSc. Investment and Treasury from Dublin City University and is
a fellow of the Institute of Chartered Accountants in Ireland. She
is also a member of the Institute of Directors in Ireland.
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
https://www.globenewswire.com/Tracker?data=hZclZz54FsHlSt81FSn2j-vQa3kh4hXr14XqHkJdY_T2tZire6QteKAKdLPXI1M1YjNwOJjIXxauMxztsJZN_g==
www.icg.ie.
John B. McGuckian
Chairman
24 August 2022
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
2022 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 2022, 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
24 August 2022
CONDENSED CONSOLIDATED
INCOME STATEMENT
FOR THE HALF YEARED 30 JUNE 2022
Notes HY 2022 HY 2021 FY 2021
Unaudited Unaudited Audited
EURm EURm EURm
Revenue 4 263.1 141.6 334.5
Depreciation, impairment and amortisation (29.9) (23.0) (52.5)
Employee benefits expense (12.1) (10.3) (20.8)
Other operating expenses (203.7) (118.6) (261.4)
--------- --------- -------
Operating profit / (loss) 17.4 (10.3) (0.2)
Finance income 0.1 - 0.1
Finance costs (2.1) (1.9) (4.0)
--------- --------- -------
Profit / (loss) before taxation 15.4 (12.2) (4.1)
Income tax expense (0.9) (0.5) (0.8)
--------- --------- -------
Profit / (loss) for the financial period: all attributable
to equity holders of the parent 4 14.5 (12.7) (4.9)
----- --------- --------- -------
Earnings per ordinary share
-- expressed in cent per share
Basic 6 8.0c (6.8)c (2.6)c
----- --------- --------- -------
Diluted 6 8.0c (6.8)c (2.6)c
----- --------- --------- -------
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
FOR THE HALF YEARED 30 JUNE 2022
HY 2022 HY 2021 FY 2021
Unaudited Unaudited Audited
Notes EURm EURm EURm
Profit / (loss) for the financial period 14.5 (12.7) (4.9)
--------- --------- -------
Items that may be reclassified subsequently to profit
or loss:
Exchange differences on translation of foreign
operations (1.0) 0.8 1.3
Items that will not be reclassified subsequently to
profit or loss:
Actuarial gain on defined benefit pension schemes 13 25.5 15.9 7.1
Deferred tax on defined benefit pension schemes (1.2) (0.9) (0.9)
--------- --------- -------
Other comprehensive income for the financial period 23.3 15.8 7.5
--------- --------- -------
Total comprehensive income for the financial period:
all attributable to equity holders of the parent 37.8 3.1 2.6
--------- --------- -------
CONDENSED CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2022
30 Jun 22 30 Jun 21 31 Dec 21
Unaudited Unaudited Audited
Notes EURm EURm EURm
Assets
Non-current assets
Property, plant and equipment 7 369.5 314.8 328.2
Right-of-use assets 8 47.7 50.6 57.2
Intangible assets 1.9 1.7 1.9
Long term receivable 9 12.1 15.1 13.6
Retirement benefit surplus 13 31.2 16.1 6.7
Deferred tax asset 0.1 0.1 0.1
--------- --------- ---------
462.5 398.4 407.7
--------- --------- ---------
Current assets
Inventories 5.9 3.0 3.8
Trade and other receivables 97.1 63.1 61.9
Cash and cash equivalents 10 38.6 131.1 38.5
----- --------- --------- ---------
141.6 197.2 104.2
--------- --------- ---------
Total assets 604.1 595.6 511.9
--------- --------- ---------
Equity and liabilities
Equity
Share capital 11.6 12.2 11.9
Share premium 20.5 19.9 20.4
Other reserves (9.5) (9.1) (8.1)
Retained earnings 228.5 246.3 225.5
--------- --------- ---------
Equity attributable to equity holders 251.1 269.3 249.7
--------- --------- ---------
Non-current liabilities
Borrowings 10 137.2 109.5 115.8
Lease liabilities 10 31.4 34.0 37.5
Deferred tax liabilities 2.4 1.2 1.3
Provisions 0.1 0.2 0.2
Retirement benefit obligations 13 0.9 1.4 1.4
----- --------- --------- ---------
172.0 146.3 156.2
--------- --------- ---------
Current liabilities
Borrowings 10 7.3 83.3 7.3
Lease liabilities 10 17.2 16.4 20.1
Trade and other payables 137.3 78.0 75.5
Dividend payable 16.1 - -
Current income tax liabilities - 0.3 -
Provisions 3.1 2.0 3.1
--------- --------- ---------
181.0 180.0 106.0
--------- --------- ---------
Total liabilities 353.0 326.3 262.2
--------- --------- ---------
Total equity and liabilities 604.1 595.6 511.9
--------- --------- ---------
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE HALF YEARED 30 JUNE 2022 (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 2022 11.9 20.4 7.8 4.7 (20.6) 225.5 249.7
------- -------- ------- ------- ----------- --------- ------
Profit for the financial
period - - - - - 14.5 14.5
Other comprehensive income - - - - (1.0) 24.3 23.3
------- -------- ------- ------- ----------- --------- ------
Total comprehensive income
for the financial period - - - - (1.0) 38.8 37.8
Employee share-based
payments expense - - - 0.7 - - 0.7
Share issue - 0.1 - - - - 0.1
Share buyback (0.3) - 0.3 - - (18.2) (18.2)
Dividends - - - - - (16.1) (16.1)
Settlement of share
options through market
purchase - - - - - (2.9) (2.9)
Transfer to retained
earnings on exercise of
options - - - (1.4) - 1.4 -
Total movements in the
financial period (0.3) 0.1 0.3 (0.7) (1.0) 3.0 1.4
Balance at 30 June 2022 11.6 20.5 8.1 4.0 (21.6) 228.5 251.1
-------------------------- ------- -------- ------- ------- ----------- --------- ------
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
-------------------------- ------- -------- ------- ------- ----------- --------- ------
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE FINANCIAL YEARED 31 DECEMBER 2021 (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 2021 12.2 19.7 7.5 5.1 (21.9) 243.3 265.9
------- ------- -----------
Loss for the financial period - - - - - (4.9) (4.9)
Other comprehensive income - - - - 1.3 6.2 7.5
------- -------- ------- ------- ----------- --------- ------
Total comprehensive income for the financial period - - - - 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)
Transfer to retained earnings on exercise of
options - - - (1.7) - 1.7 -
Total movements in the financial period (0.3) 0.7 0.3 (0.4) 1.3 (17.8) (16.2)
Balance at 31 December 2021 11.9 20.4 7.8 4.7 (20.6) 225.5 249.7
--------------------------------------------------- ------- -------- ------- ------- ----------- --------- ------
CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE HALF YEARED 30 JUNE 2022
HY 2022 HY 2021 FY 2021
Unaudited Unaudited Audited
Notes EURm EURm EURm
Profit / (loss) for the financial year 14.5 (12.7) (4.9)
Adjustments for:
Finance costs (net) 2.0 1.9 3.9
Income tax expense 0.9 0.5 0.8
Retirement benefit scheme movements 14 0.6 - 0.6
Depreciation of property, plant and equipment 18.9 15.1 31.9
Amortisation of intangible assets 0.2 0.1 0.3
Depreciation of right-of-use assets 10.8 7.8 20.3
Share-based payment expense less market purchase cost (2.2) 0.1 0.3
Increase in provisions - - 1.1
Working capital movements 14 23.4 6.1 11.7
------------- --------- --------------- -------
Cash generated from operations 69.1 18.9 66.0
--------- --------------- -------
Income taxes paid (0.8) (0.3) (0.8)
Interest paid (1.6) (2.8) (8.4)
--------- --------------- -------
Net cash inflow from operating activities 66.7 15.8 56.8
--------- --------------- -------
Cash flow from investing activities
Net proceeds on disposal of property, plant and equipment 1.5 1.4 2.8
Purchases of property, plant and equipment and intangible
assets 14 (61.9) (21.2) (55.2)
Lease inception costs - - (0.3)
Net cash outflow from investing activities (60.4) (19.8) (52.7)
--------- --------------- -------
Cash flow from financing activities
Dividends paid to equity holders of the Company 5 - - -
Repayment of lease liabilities 14 (10.4) (7.8) (19.8)
Proceeds on issue of ordinary share capital 0.1 0.2 0.7
Repayments of bank loans (3.8) (7.8) (87.5)
Drawdown of bank loans 25.0 - 10.0
Share buy back (17.0) - (19.8)
--------- --------------- -------
Net cash outflow from financing activities (6.1) (15.4) (116.4)
Net increase / (decrease) in cash and cash equivalents 0.2 (19.4) (112.3)
Cash and cash equivalents at the beginning of the
period 38.5 150.4 150.4
Effect of foreign exchange rate changes (0.1) 0.1 0.4
--------- --------------- -------
Cash and cash equivalents at the end of the period 10 38.6 131.1 38.5
------------- --------- --------------- -------
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE HALF YEARED 30 JUNE 2022
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
2022 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
2022 do not constitute the statutory financial statements of the Group;
-- the figures disclosed relating to 31 December 2021 have been derived from
the statutory financial statements for the financial year ended 31
December 2021 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 2022 and the comparative amounts for the
half year ended 30 June 2021 have been neither audited nor reviewed by
the auditors of the Group.
2. Accounting policies
The Group Condensed Financial Statements for the six months
ended 30 June 2022 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 2021, which is available at www.icg.ie.
Amendments to accounting standards IFRS 3, IAS 37 and IAS 8
became effective for the Group commencing 1 January 2022. The
adoption of these amendments did not have a material impact on
these financial statements. Information about the impact of new
accounting standards that are not effective for the current
reporting period are set out on pages 139 and 140 of the Group's
Annual Report for the year ended 31 December 2021.
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 2021. 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 and adoption of the going concern assumption.
In relation to the valuation of retirement benefit obligations
set out in note 13 to these Condensed Consolidated Financial
Statements there have been changes made to the discount rate and
inflation assumptions compared to those used at 31 December 2021
which have resulted in a material reduction in the valuation of
retirement benefit obligations reflected through an actuarial
credit of EUR38.3 million which was offset by experience
adjustments and return on scheme assets totalling EUR12.8 million,
resulting in a EUR25.5 million actuarial gain being recorded in the
Statement of Comprehensive Income. Furthermore, in relation to one
vessel which had reached 25 years since construction, the directors
reassessed the remaining useful life increasing it to 10 years from
5 years, reducing the depreciation charge in the half year ended by
EUR0.8 million. Other than noted in the foregoing, there have been
no material changes to key estimates that had previously been made
in the prior year financial statements to 31 December 2021.
Impact of Covid-19
The Group's financial results had been impacted in the financial
years 2020 and 2021 as a result of the imposition of travel
restrictions by governments in response to the emergence of the
Covid-19 pandemic. These travel restrictions were removed in early
2022 in the jurisdictions in which the Group offers travel
services. Following removal, patterns of travel have gradually
returned towards pre-pandemic levels. The Group has revisited its
previous assessment of the impact of Covid-19 both on whether it
continues to be an indicator of impairment and the continued use of
the going concern basis.
Impairment Indicators
At 31 December 2021, the Group reported that it had performed an
assessment of possible indicators of impairment with a focus on the
economic performance of assets, technological developments, new
rules and regulations, shipbuilding costs and carrying value versus
market capitalisation. The Group noted that there were no
indicators of a general decline in the market value of the types of
vessels included in the Group's fleet, Nonetheless, in referencing
accounting standard IAS 36: Impairment of assets, management
assessed that the depressed profitability for financial years 2020
and 2021 as a result of the impact of the Covid-19 travel
restrictions amounted to an indicator of impairment for its ferry
fleet. The Group performed an exercise to assess the recoverable
amount
of the ferry fleet at 31 December 2021 and concluded that no
provision for impairment against the carrying value of the Group's
ferry fleet was required at 31 December 2021. A similar assessment
had been performed at 30 June 2021 which also concluded that no
provision for impairment against the carrying value of the Group's
ferry fleet was required at that date.
At 30 June 2022, the Group has performed an updated assessment
of possible indicators of impairment. In considering economic
performance, the Group notes that the half-year result to 30 June
2022 was broadly aligned with the base scenario used for the value
in use exercise at 31 December 2021. The Group concluded that no
indicators of impairment existed at 30 June 2022 and a
recoverability assessment for impairment purposes was not
required.
Going Concern
The Company previously reported in its 2021 Annual Report that
it had modelled a number of scenarios for its businesses including
the re-imposition of travel restrictions. Based on that modelling,
the Directors reported their conclusion that the Group retained
sufficient liquidity to operate for the period up to March 2023.
The Company notes that the trading result for the half year to 30
June 2022 was aligned with the base scenario previously modelled
and ahead of the downside scenario. The Group has extended the
outlook period of these projections to August 2023. On the basis of
these updated 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.
4. 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. These segments are the basis on which the Group reports
internally and are the only two revenue generating segments of the
Group.
The Ferries segment derives its revenue from the operation of
combined RoRo passenger ferries and the chartering of vessels. The
Container and Terminal segment derives its revenue from the
provision of door-to-door and feeder LoLo freight services,
stevedoring and other related terminal services.
Segment information about the Group's operations is presented
below.
i) Revenue Analysis
By business segment:
HY 2022 HY 2021 FY 2021
EURm EURm EURm
Ferries
Passenger 58.5 10.1 59.0
Freight 85.5 44.0 94.6
Charter 23.3 8.8 20.7
Other 0.6 - 1.2
------- ------- -------
167.9 62.9 175.5
------- ------- -------
Container and Terminal
Freight 111.0 85.2 174.0
------- ------- -------
Inter-segment revenue (15.8) (6.5) (15.0)
------- ------- -------
Total 263.1 141.6 334.5
------- ------- -------
The removal of Covid-19 related travel restrictions led to a
significant increase in passenger traffic, while the commencement
of the Dover -- Calais service increased both passenger and freight
revenues versus HY 2021.
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 2022 HY 2021 FY 2021
EURm EURm EURm
Ireland 87.2 68.9 135.6
United Kingdom 64.4 14.5 64.1
Netherlands 47.9 35.5 73.7
Belgium 24.0 17.4 36.7
France 7.6 0.6 4.5
Poland 7.6 1.0 4.5
Other 24.4 3.7 15.4
------- ------- -------
263.1 141.6 334.5
------- ------- -------
No single external customer in the current or prior financial
periods amounted to 10 per cent of the Group's revenues.
ii) Profit / (loss) for the financial year
Ferries Container and Terminal Group Total
HY 2022 HY 2021 FY 2021 HY 2022 HY 2021 FY 2021 HY 2022 HY 2021 FY 2021
EURm EURm EURm EURm EURm EURm EURm EURm EURm
Operating
profit /
(loss) 5.7 (18.9) (17.4) 11.7 8.6 17.2 17.4 (10.3) (0.2)
Finance
income 0.1 - - - - 0.1 0.1 - 0.1
Finance
costs (1.5) (1.4) (2.0) (0.6) (0.5) (2.0) (2.1) (1.9) (4.0)
Profit /
(loss)
before
tax 4.3 (20.3) (19.4) 11.1 8.1 15.3 15.4 (12.2) (4.1)
Income tax
expense (0.1) 0.1 (0.1) (0.8) (0.6) (0.7) (0.9) (0.5) (0.8)
------- ------- -------- ------- ------- ------- ------- ------- -------
Profit /
(loss)
for the
financial
year 4.2 (20.2) (19.5) 10.3 7.5 14.6 14.5 (12.7) (4.9)
------- ------- -------- ------- ------- ------- ------- ------- -------
iii) Statement of Financial Position
Ferries Container and Terminal Group Total
30 Jun 22 30 Jun 21 31 Dec 21 30 Jun 22 30 Jun 21 31 Dec 21 30 Jun 22 30 Jun 21 31 Dec 21
EURm EURm EURm EURm EURm EURm EURm EURm EURm
Assets
Segment
assets 446.2 365.3 367.0 119.3 99.2 106.4 565.5 464.5 473.4
Cash and cash
equivalents 36.8 115.1 29.9 1.8 16.0 8.6 38.6 131.1 38.5
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Consolidated
total
assets 483.0 480.4 396.9 121.1 115.2 115.0 604.1 595.6 511.9
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Liabilities
Segment
liabilities 100.2 49.3 49.8 42.5 33.8 31.7 142.7 83.1 81.5
Borrowings
and lease
liabilities 154.9 196.0 140.0 38.1 47.2 40.7 193.0 243.2 180.7
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Consolidated
total
liabilities* 255.1 245.3 189.8 80.6 81.0 72.4 335.7 326.3 262.2
--------- --------- --------- --------- --------- --------- --------- --------- ---------
* Consolidated total Group liabilities above exclude EUR17.3
million of liabilities relating to dividends payable of EUR16.1
million and share buyback consideration accrued of EUR1.2 million
which are not allocated at a divisional level (HY 2021: EURnil; FY
2021: EURnil).
iv) Seasonality
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 2022 HY 2021 FY 2021
EURm EURm EURm
Interim dividend - - -
Final dividend - - -
------- ------- -------
- - -
------- ------- -------
No dividends were paid in the six months ended 30 June 2022. The
final dividend of 9.0 cent per ordinary share in respect of the
financial year ended 31 December 2021, approved by shareholders on
11 May 2022, was paid on 7 July 2022 and amounted to EUR16.1
million. This was accrued in the Condensed Statement of Financial
Position at 30 June 2022.
The Directors have declared an interim dividend of 4.64 cent per
ordinary share in respect of 2022 which will be paid on 7 October
2022 to shareholders on the register on 16 September 2022.
6. Earnings per share
HY 2022 HY 2021 FY 2021
Number of shares '000 '000 '000
Weighted average number of ordinary shares for the
purpose of basic earnings per share 181,178 187,011 186,715
Effect of dilutive potential ordinary shares: Share
options 615 - -
------- ------- ---------
Weighted average number of ordinary shares for the
purpose of diluted earnings per share 181,793 187,011 186,715
------- ------- ---------
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.
Profit / (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 HY
2022 2021 FY 2021
Earnings EURm EURm EURm
Earnings for the purpose of basic and diluted earnings
per share -- Profit / (loss) for the financial period
attributable to equity holders of the parent 14.5 (12.7) (4.9)
Effect of net interest income on defined benefit pension
schemes (0.1) - (0.1)
----- ------ -------
Earnings for the purpose of adjusted earnings per
share 14.4 (12.7) (5.0)
----- ------ -------
Cent Cent Cent
----- ------ -------
Basic earnings per share 8.0 (6.8) (2.6)
----- ------ -------
Diluted earnings per share 8.0 (6.8) (2.6)
----- ------ -------
Adjusted basic earnings per share 8.0 (6.8) (2.7)
----- ------ -------
Adjusted diluted earnings per share 8.0 (6.8) (2.7)
----- ------ -------
7. 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
2021 0.6 481.3 61.6 26.2 569.7
Additions 1.4 58.8 0.6 0.3 61.1
Disposals - (7.7) (0.5) - (8.2)
Reclassification - - (1.8) 1.8 -
Currency
adjustment - (1.1) (0.1) - (1.2)
------------- ------- ------------ ------------- -----
At 30 June 2022 2.0 531.3 59.8 28.3 621.4
------------- ------- ------------ ------------- -----
Accumulated
depreciation
At 31 December
2021 - 187.2 43.9 10.4 241.5
Charge for period - 17.0 1.7 0.2 18.9
Disposals - (7.7) (0.5) - (8.2)
Currency
adjustment - (0.2) (0.1) - (0.3)
------------- ------- ------------ ------------- -----
At 30 June 2022 - 196.3 45.0 10.6 251.9
------------- ------- ------------ ------------- -----
Carrying amount
At 30 June 2022 2.0 335.0 14.8 17.7 369.5
------------- ------- ------------ ------------- -----
At 31 December
2021 0.6 294.1 17.7 15.8 328.2
------------- ------- ------------ ------------- -----
At 30 June 2021 0.6 279.7 18.3 16.2 314.8
------------- ------- ------------ ------------- -----
8. Right-of-use assets
Plant, Equipment Land and
Vessels and Vehicles Buildings Total
EURm EURm EURm EURm
Cost
At 31 December 2021 49.2 12.1 35.1 96.4
Additions - 1.5 - 1.5
Disposals (2.8) (0.3) - (3.1)
Currency adjustment - - (0.2) (0.2)
------- ------------------- ------------------- -----
At 30 June 2022 46.4 13.3 34.9 94.6
------- ------------------- ------------------- -----
Accumulated
depreciation
At 31 December 2021 27.5 5.0 6.7 39.2
Charge for period 8.6 1.0 1.2 10.8
Disposals (2.8) (0.3) - (3.1)
Currency adjustment - - - -
------- ------------------- ------------------- -----
At 30 June 2022 33.3 5.7 7.9 46.9
------- ------------------- ------------------- -----
Carrying amount
At 30 June 2022 13.1 7.6 27.0 47.7
------- ------------------- ------------------- -----
At 31 December 2021 21.7 7.1 28.4 57.2
------- ------------------- ------------------- -----
At 30 June 2021 21.0 5.6 24.0 50.6
------- ------------------- ------------------- -----
Additions of right-of-use assets include EURnil million (2021:
EURnil) of directly attributable costs relating to new leases
commenced in the period.
9. Lease receivable
30 Jun 22 30 Jun 21 31 Dec 21
EURm EURm EURm
Operating activities
Current finance lease receivable 3.0 2.9 3.0
Non-current finance lease receivable 12.1 15.1 13.6
--------- --------- ---------
Total 15.1 18.0 16.6
--------- --------- ---------
Beginning of reporting period 16.6 19.4 19.4
Amounts received (1.8) (1.8) (3.6)
Net benefit recognised in period 0.3 0.4 0.8
--------- --------- ---------
End of reporting period 15.1 18.0 16.6
--------- --------- ---------
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 2022 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.
10. Net debt 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 Loan Lease Origination
Cash loans notes liabilities fees Total
EURm EURm EURm EURm EURm EURm
At 1 January
2022
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)
-----
Movements
during the
period
Cash flow
changes
Drawdowns - (25.0) - - - (25.0)
Repayments - 3.8 - 10.4 - 14.2
Other
movements 0.2 - - - - 0.2
Non cash flow
changes
Amortisation - - - - (0.2) (0.2)
Lease
liabilities
recognised - - - (1.5) - (1.5)
Currency
adjustment (0.1) - - 0.1 - -
----- -------- --------- ----------- ----------- -------
0.1 (21.2) - 9.0 (0.2) (12.3)
----- -------- --------- ----------- ----------- -------
At 30 June 2022
Current assets 38.6 - - - - 38.6
Creditors due
within one
year - (7.5) - (17.2) 0.2 (24.5)
Creditors due
after one
year - (87.5) (50.0) (31.4) 0.3 (168.6)
----- -------- --------- ----------- ----------- -------
38.6 (95.0) (50.0) (48.6) 0.5 (154.5)
----- -------- --------- ----------- ----------- -------
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)
----- -------- --------- ----------- ----------- -------
ii) The maturity profile and available borrowing and cash
facilities available to the Group at 30 June 2022 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 - - 38.6 - - - -
-------- ------- ------- ----- ------- ------- --------
Committed lending
facilities
Bank overdrafts 15.4 15.4 - - - - -
Bank loans 135.0 40.0 95.0 7.5 7.5 57.5 22.5
Loan notes 50.0 - 50.0 - - 50.0 -
Leases 48.6 - 48.6 17.2 4.0 8.2 19.2
Origination fees (0.5) - (0.5) (0.2) (0.2) (0.1) -
-------- ------- ------- ----- ------- ------- --------
Committed lending
facilities 248.5 55.4 193.1 24.5 11.3 115.6 41.7
-------- ------- ------- ----- ------- ------- --------
Uncommitted lending
facilities
Bank loans 50.0
Loan notes 214.8
--------
Uncommitted lending
facilities 264.8
--------
Bank overdrafts are stated net of trade guarantee facilities
utilised of EUR0.6 million.
At 30 June 2022 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.
11. 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.
12. 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 2021 Annual Report. There have been no changes to the risk
management procedures or policies since the 2021 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 22 30 Jun 21 31 Dec 21
Carrying Fair Carrying Fair Carrying Fair
value value value value value value
EURm EURm EURm EURm EURm EURm
Financial
assets
Lease
receivable 15.1 14.5 18.0 18.0 16.6 16.6
Trade and
other
receivables 94.0 94.0 60.2 60.2 58.9 58.9
Cash and
cash
equivalents 38.6 38.6 131.1 131.1 38.5 38.5
--------- --------- --------- --------- --------- ---------
Total
financial
assets 147.7 147.1 209.3 209.3 114.0 114.0
--------- --------- --------- --------- --------- ---------
Financial
liabilities
Borrowings 144.5 136.4 192.8 194.1 123.1 124.8
Dividend
payable 16.1 16.1 - - - -
Lease
liabilities 48.6 48.6 50.4 50.4 57.6 57.6
Trade and
other
payables 92.5 92.5 57.8 57.8 57.9 57.9
--------- --------- --------- --------- --------- ---------
Total
financial
liabilities 301.7 293.6 301.0 302.3 238.6 240.3
--------- --------- --------- --------- --------- ---------
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.
iii) Fair value of financial assets and financial liabilities
measured at amortised cost - continued
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 2022, 31 December 2021, and 30 June 2021, the Group
did not hold any positions relating to derivative financial
instruments.
13. Retirement benefit schemes
The assumptions used to value pension obligations were reviewed
against the background of market conditions as at 30 June 2022,
leading to a change in discount and inflation rate assumptions,
while demographic and other assumptions were retained at 31
December 2021 levels. Scheme assets have been valued as per
investment managers' valuations at 30 June 2022. 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 3.40% for Euro liabilities (31 December 2021: 1.20%)
and 3.65% for Sterling liabilities (31 December 2021: 1.85%).
At 30 June 2022, the Group's total obligation in respect of
defined benefit schemes totals EUR97.1 million (31 December 2021:
EUR140.5 million). The schemes held assets of EUR127.4 million (31
December 2021: EUR145.8 million), giving a net pension surplus of
EUR30.3 million (31 December 2021: EUR5.3 million).
The principal assumptions used for the purpose of the actuarial
valuations at 30 June 2022 were derived using techniques consistent
with those used for the assumptions used for the 31 December 2021
valuations. The assumptions, which were set after considering
independent actuarial advice and which are reflective of market
conditions that existed at 30 June 2022, were as follows:
30 Jun 22 30 Jun 21 31 Dec 21
Sterling Euro Sterling Euro Sterling Euro
Discount
rate 3.65% 3.40% 1.85% 1.15% 1.85% 1.20%
Inflation
rate 3.60% 2.30% 3.45% 1.70% 3.60% 2.00%
Rate of
increase of
pensions in
payment 2.20% - 3.40% 1.30% 3.25% 0.70% 2.20% - 3.40% 1.00%
Rate of 0.00% - 1.05% 0.00% -
pensionable 1.10% 1.30% 1.60% 1.10% 0.00% - 1.20%
salary
increases
--------------- ------- -------- ----------- --------------- ---------------
The movements in the net surplus on the retirement benefit
schemes were as follows:
HY 2022 HY 2021 FY 2021
Movement in retirement benefit schemes net surplus EURm EURm EURm
Opening surplus / (deficit) 5.3 (1.2) (1.2)
Current service cost (0.9) (0.9) (1.7)
Employer contributions paid 0.3 0.9 1.1
Net interest income 0.1 - 0.1
Actuarial gain 25.5 15.9 7.1
Currency adjustment / other - - (0.1)
------- ------- -------
Net surplus 30.3 14.7 5.3
------- ------- -------
Schemes in surplus 31.2 16.1 6.7
Schemes in deficit (0.9) (1.4) (1.4)
------- ------- -------
Net surplus 30.3 14.7 5.3
------- ------- -------
The movement in the net pension surplus since 31 December 2021
includes actuarial gains which are recognised in the Condensed
Consolidated Statement of Comprehensive Income.
HY HY FY
2022 2021 2021
Actuarial gains recognised in the Condensed Consolidated
Statement of Comprehensive Income EURm EURm EURm
Return on scheme assets excluding amounts recognised
as finance income 0.4 0.5 15.5
Remeasurement adjustments on scheme liabilities
- Changes in demographic assumptions - - (8.6)
- Changes in financial assumptions 38.3 5.2 0.1
- Experience adjustments (13.2) 10.2 0.1
------ ---- -----
Actuarial gains recognised in the Condensed Consolidated
Statement of Comprehensive Income 25.5 15.9 7.1
------ ---- -----
The actuarial gain arising on scheme assets, which are mainly
invested 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.
14. Cash flow components
HY HY FY
2022 2021 2021
EURm EURm EURm
Pension scheme movements
Retirement benefit obligations -- current service
cost 0.9 0.9 1.7
Retirement benefit obligations -- payments (0.3) (0.9) (1.1)
------ ------ ------
Total retirement benefit scheme movements 0.6 - 0.6
------ ------ ------
Repayments of lease liabilities
Lease payments (11.1) (8.5) (21.1)
Interest element of lease payments 0.7 0.7 1.3
------ ------ ------
Capital element of lease payments (10.4) (7.8) (19.8)
------ ------ ------
Purchases of property, plant and equipment and intangible
assets
Purchases of property, plant and equipment (61.1) (15.7) (45.6)
Purchases of intangible assets (0.1) (0.6) (1.0)
Increase in capital asset prepayments (0.7) (4.9) (8.6)
------ ------ ------
Total purchases of property, plant and equipment and
intangible assets (61.9) (21.2) (55.2)
------ ------ ------
Changes in working capital
Increase in inventories (2.1) (1.1) (1.9)
(Increase) / decrease in receivables (34.5) (2.7) 2.5
Increase in payables 60.0 9.9 11.1
------ ------ ------
Total working capital movements 23.4 6.1 11.7
------ ------ ------
Share buybacks
Charge against retained earnings (18.2) - (19.8)
Amounts settled post period end 1.2 - -
------ ------ ------
Total cash payments in period (17.0) - (19.8)
------ ------ ------
At 30 June 2022 and 30 June 2021, the overall working capital
movements amounted to EUR23.4 million and EUR6.1 million
respectively, which relate to seasonal working capital inflows that
are expected to unwind in the second half of the year.
15. 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 2022, 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.
16. 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 2021.
17. Composition of the entity
There have been no changes in the composition of the entity
during the half year ended 30 June 2022.
18. Commitments
HY 2022 HY 2021 FY 2021
EURm EURm EURm
Commitments for the acquisition of property, plant
and equipment -- approved and contracted for, but
not accrued 13.1 17.2 31.4
------- ------- -------
19. Events after the reporting period
There have been no material events occurring after the period
ended 30 June 2022.
20. Board approval
This interim report was approved by the Board of Directors of
Irish Continental Group plc on 24 August 2022.
APPENDIX: RECONCILIATION OF APMS
FOR THE HALF YEAR ENDED 30 JUNE 2022
Alternative Performance Measures
Certain financial measures set out in our Half-Yearly Financial
Report to 30 June 2022 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.
EBITDA
EBITDA represents earnings before non-trading items*, interest,
tax, depreciation and amortisation. As it eliminates the effects of
financing and depreciation decisions it allows for the assessment
of underlying cash profit generated from operations.
Financial Statement
Reference HY 2022 HY 2021 FY 2021
EURm EURm EURm
Operating profit / Condensed Consolidated
(loss) Income Statement 17.4 (10.3) (0.2)
Depreciation, impairment Condensed Consolidated
and amortisation Income Statement 29.9 23.0 52.5
------------------------- ------- ------- -------
EBITDA 47.3 12.7 52.3
------- ------- -------
Free Cash Flow
Free cash flow comprises Net Cashflow from Operating Activities
less capital expenditure. It is presented both before and after
strategic capital expenditure. Capital expenditure comprises
purchases of property, plant and equipment and intangible assets.
Strategic capital expenditure comprises expenditure on vessels
excluding annual overhaul and repairs, and other assets with an
expected economic life of over 10 years which increases capacity or
efficiency of operations.
It is presented as a measure of the availability to the Group of
funds for reinvestment or for return to shareholders.
Financial Statement
Reference HY 2022 HY 2021 FY 2021
EURm EURm EURm
Condensed Consolidated
Net cash inflow from Statement of Cash
operating activities Flows 66.7 15.8 56.8
Capital expenditure
excluding strategic
capital expenditure See note below (10.3) (10.8) (13.5)
----------------------- -------- -------- --------
Free cash flow before
strategic capital
expenditure 56.4 5.0 43.3
Strategic capital
expenditure See note below (51.6) (10.4) (41.7)
----------------------- -------- -------- --------
Free cash flow after strategic capital
expenditure 4.8 (5.4) 1.6
-------- -------- --------
The total of the capital expenditure amounts set out above in
included as a single line item in the Condensed Consolidated
Statement of Cash Flows
Net Debt
Net debt comprises total borrowings and lease liabilities
included as current and non-current liabilities less cash and cash
equivalents.
Net Debt is a measure of the Group's ability to repay its debts
if they were to fall due immediately. Net Debt (pre-IFRS16) is a
measure of net debt for banking covenant purposes which excludes
IFRS 16 lease liabilities.
Financial Statement
Reference HY 2022 HY 2021 FY 2021
EURm EURm EURm
Net Debt Note 10 154.5 112.1 142.2
Current lease
liabilities Note 10 (17.2) (16.4) (20.1)
Non-current lease
liabilities Note 10 (31.4) (34.0) (37.5)
------------------------- ------- ------- -------
Net Debt (pre-IFRS 16) 105.9 61.7 84.6
------- ------- -------
Adjusted Basic EPS
Basic EPS is adjusted to exclude non-trading items and net
interest cost on defined benefit obligations. 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.
It is used as a key indicator of long-term financial performance
and value creation of a public listed company.
The calculation of adjusted basic EPS is set out at Note 6.
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.
(END) Dow Jones Newswires
August 25, 2022 02:00 ET (06:00 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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