TIDMIRSH
_________________
Preliminary Statement of Results for the year ended 31 December
2022
Irish Continental Group (ICG), the leading Irish-based maritime
transport group, reports its financial performance for the year
ended 31 December 2022.
Highlights
Financial Summary
2022 2021 Change
Revenue EUR584.9m EUR334.5m +74.9%
EBITDA EUR127.2m EUR52.3m +143.2%
Operating profit / (loss) EUR66.7m EUR(0.2)m
Basic earnings per share 33.6c (2.6)c
Net debt EUR(171.1)m EUR(142.2)m (20.3%)
Net debt (pre-IFRS 16) EUR(128.7)m EUR(84.6)m (52.1%)
ROACE 17.5% (0.1%) +17.6 pts
Volume movements
2022 2021
'000 '000 Change
RoRo units 696.6 290.0 +140.2%
Cars 573.4 203.6 +181.6%
Containers shipped (teu) 322.6 346.6 (6.9%)
Port lifts 319.6 335.5 (4.7%)
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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 9 on page 25 of the Condensed
Financial Statements.
-- Revenue increased by EUR250.4 million (74.9%) to EUR584.9 million.
-- EBITDA increase of EUR74.9 million to EUR127.2 million principally due to
increased revenues and a continued focus on costs.
-- The Ferries Division's Dover -- Calais service was further expanded by
the introduction the Isle of Inisheer to the route on 26 April 2022. The
introduction of the third vessel is the culmination of our planned
investment for the route. This has made Irish Ferries a genuine
alternative for all customers on the Channel route, with Irish Ferries
now offering up to 30 sailings per day on the Dover -- Calais route.
-- The fleet was also increased with the acquisition of a container vessel,
the CT Pachuca, bringing the total owned fleet to six ferries and eight
container ships.
-- The Group commenced operations at a container depot at the new Dublin
Inland Port in January 2022 following an earlier public tender. This is
an important facility 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.
-- During 2022, the Group took delivery of a further five remote control
semi-automated electric rubber-tyred gantry cranes (RTGs), which brings
the total number of electrically powered units at DFT to nine. Of the
nine RTG's, six are fully commissioned and in use, with a further three
to be commissioned in Q2 of 2023, continuing our transition to this more
environmentally efficient mode of operation. The Group has also ordered
one new electrically powered ship-to-shore crane (STS) for delivery in
2023. The equipment replacement programme puts us on track to achieve
emissions reduction targets of net zero emissions by 2030 in our terminal
operations.
-- The Group had strong cash generation during the year with cash generated
from operations of EUR132.0 million (2021 EUR67.0 million). Cash outflows
included strategic capital expenditure of EUR57.4 million (2021: EUR41.7
million), share buybacks of EUR49.2 million (2021: EUR19.8 million) and
dividends paid of EUR24.2 million (2021: EURnil). Net debt at year end
was EUR171.1 million (EUR128.7 million pre-IFRS 16) which was 1.2 times
EBITDA under banking covenant definitions. The Group is in a strong
financial position with available liquidity comprising cash and committed
bank facilities of EUR67.4 million at 31 December 2022.
Commenting on the results, Chairman John B. McGuckian said;
"2022 has been a year not just of recovery but of building for
long-term growth. With the Covid-19 pandemic now behind us, we have
turned our full attention to maximising the opportunities that have
arisen for the Group over the last two years. We come out of the
pandemic with operations larger than we had at its commencement,
and with a balance sheet that remains strong. 2022 saw the
completion of our planned fleet investment for the Dover -- Calais
route. The entry to this route has been a long-term objective for
the Group and the expansion to a three ship operation during 2022
allows us to compete effectively on this route. While there is some
uncertainty around economic growth rates, we look forward to
continued growth during 2023 through the leveraging of our recent
investments and the continued support of all customers."
9 March 2023
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
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Media enquiries:
Q4 Public Relations Tel: +353 1 475 1444 Email:
press@q4pr.ie
Results
Financial Highlights
2022 2021 Change
Revenue EUR584.9m EUR334.5m +74.9%
EBITDA EUR127.2m EUR52.3m +143.2%
Operating profit / (loss) EUR66.7m EUR(0.2)m
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The overall financial outcome for the Group was a profit before
tax of EUR62.5 million (2021: loss of EUR4.1 million) while
operating profit was EUR66.7 million (2021: loss of EUR0.2
million). EBITDA generated was EUR127.2 million (2021: EUR52.3
million) from total revenues of EUR584.9 million (2021: EUR334.5
million).
EBITDA increased significantly on the prior year in our Ferries
Division where EBITDA was EUR95.7 million (2021: EUR23.2 million).
The division saw increased revenues from the easing of travel
restrictions and expansion 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 increased EBITDA of EUR31.5
million (2021: EUR29.1 million) through a continued focus on cost
optimisation and increases in revenue.
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. Cash
generated from operations amounted to EUR132.0 million (2021:
EUR67.0 million) and together with loan drawdowns, this funded
strategic capital expenditure of EUR57.4 million, share buybacks of
EUR49.2 million and dividends of EUR24.2 million. Net debt at 31
December 2022 stood at EUR171.1 million (2021: EUR142.2 million).
It is testament to the strength of the business and the balance
sheet that, despite challenging trading conditions, we had the
ability to continue investing in the future growth of our
business.
Operational Review
ICG operates through two divisions; the Ferries Division and the
Container and Terminal Division. The Ferries Division, which owns
and manages the Group's fleet, 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 terminals in
Dublin and its terminal operations in Belfast.
Ferries Division
Financial summary
2022 2021 Change
Revenue* EUR399.9m EUR175.5m +127.9%
EBITDA EUR95.7m EUR23.2m +312.5%
Operating profit / (loss) EUR46.4m EUR(17.4)m
--------- ----------
*Includes inter-segment revenue of EUR35.3 million (2021:
EUR13.8 million)
Operational Highlights
2022 2021 Change
Volumes '000 '000
Cars 573.4 203.6 +181.6%
Passengers 2,315.0 667.8 +246.7%
RoRo freight units 696.6 290.0 +140.2%
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Revenue in the division was 127.9% higher than the previous year
at EUR399.9 million (2021: EUR175.5 million). Revenue in the first
half of the year increased by 166.9% to EUR167.9 million (2021:
EUR62.9 million), while in the second half revenue increased by
106.0%, to EUR232.0 million (2021: EUR112.6 million). EBITDA
increased to EUR95.7 million (2021: EUR23.2 million) while
operating profit was EUR46.4 million compared with a loss of
EUR(17.4) million in 2021.
Fuel costs were EUR104.6 million, an increase of EUR61.5 million
on the prior year. The division achieved a return on capital
employed of 14.9% (2021: (5.9%)). In total, Irish Ferries operated
13,865 sailings in 2022 (2021: 6,331), the increase due to
additional sailings on the Irish Ferries Dover -- Calais service,
commenced in June 2021, as it moved to a three vessel operation
during 2022.
Car and Passenger markets
It is estimated that the overall car market, on the routes that
we operate (Republic of Ireland to UK/France and the Dover
Straits), grew by approximately 147.2% in 2022 to 4,131,000 cars.
While encouraging, this level of car carryings is still 23.9%
behind 2019 levels.
Irish Ferries' car carryings during the year were increased over
the previous year by 181.6% to 573,400 cars (2021: 203,600 cars).
The increase in carryings versus 2021 levels is primarily due to
the lifting of Covid-19 travel restrictions and the expansion to a
three ship service on the Dover -- Calais route.
The total sea passenger market (i.e. comprising car, coach and
foot passengers on the Republic of Ireland to UK/France and the
Dover Straits) increased by 95.5% on 2021 to a total of 16.6
million passengers. Irish Ferries' passenger numbers carried
increased by 246.7% at 2,315,000 (2021: 667,800).
.
RoRo Freight
The RoRo freight market between the Republic of Ireland to the
UK and France and the Dover Straits fell slightly in 2022. The
total number of trucks and trailers decreased by 1.1%, to
approximately 4,389,700 units.
Irish Ferries' freight carryings, at 696,600 freight units
(2021: 290,000 freight units), increased by 140.2% versus the prior
year. The increased carryings over market performance was enabled
through the additional capacity of the three vessel service on the
Dover -- Calais route.
Chartering
The Group continued to charter a number of vessels to third
parties during 2022. Overall external charter revenues were EUR17.2
million in 2022 (2021: EUR8.1 million). Of our eight owned LoLo
container vessels, five are currently on charter 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
2022 2021 Change
Revenue* EUR221.5m EUR174.0m +27.3%
EBITDA EUR31.5m EUR29.1m +8.2%
Operating profit EUR20.3m EUR17.2m +18.0%
--------- --------- ------
*Includes inter-segment revenue of EUR1.2 million (2021: EUR1.2
million)
Operational Highlights
2022 2021 Change
Volumes '000 '000
Containers shipped (teu) 322.6 346.6 (6.9%)
Port lifts 319.6 335.5 (4.7%)
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Revenue in the division increased to EUR221.5 million (2021:
EUR174.0 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
74% (2021: 72%) 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 8.2% to EUR31.5 million
(2021: EUR29.1 million) while operating profit grew 18.0% to
EUR20.3 million (2021: EUR17.2 million). The division achieved a
return on capital employed of 29.3% (2021: 25.5%).
In Eucon, overall container volumes shipped were down 6.9%
compared with the previous year at 322,600 teu (2021: 346,600 teu).
Despite the reduction in volumes in Eucon and strong increases in
the cost base, revenue and profitability increased due to recovery
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 down 4.7%
at 319,600 lifts (2021: 335,500 lifts). DFT's volumes were down
4.5%, while BCT's volumes were down 5.1%. While the reduction in
volumes is disappointing, we are encouraged by the continued
Revenue growth in the terminals offsetting the additional
costs.
Group Finance Review
Cash Flow
A summary cash flow is presented below:
2022 2021
EURm EURm
Operating profit / (loss) (EBIT)* 66.7 (0.2)
Depreciation and amortisation 60.5 52.5
------ ------
EBITDA* 127.2 52.3
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Working capital movements 1.2 11.7
Retirement benefit scheme movements 1.1 0.6
Share-based payment expense 3.0 1.3
Other movements (0.5) 1.1
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Cash generated from operations 132.0 67.0
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Interest paid (4.0) (8.4)
Tax paid (1.7) (0.8)
Capital expenditure excluding strategic capital
expenditure (18.3) (13.5)
------ ------
Free cash flow before strategic capital expenditure* 108.0 44.3
Strategic capital expenditure (57.4) (41.7)
Free cash flow after strategic capital expenditure 50.6 2.6
------------------------------------------------------- ------ ------
Proceeds on disposal of property, plant and equipment 3.0 2.8
Share issue 0.1 0.7
Settlement of employee equity plans through market
purchases (2.9) (1.0)
Dividends paid (24.2) -
Share buyback (49.2) (19.8)
------ ------
Net cash flows (22.6) (14.7)
------------------------------------------------------- ------ ------
*Additional information in relation to these Alternative
Performance Measures ("APMs") is disclosed on page 25.
EBITDA for the year was EUR127.2 million (2021: EUR52.3
million). There was a net inflow of EUR1.2 million due to positive
working capital movements, retirement benefit scheme movements of
EUR1.1 million, share-based payment expense of EUR3.0 million and
other net cash outflows amounting to EUR0.5 million, yielding cash
generated from operations amounting to EUR132.0 million (2021:
EUR67.0 million).
Interest paid was EUR4.0 million (2021: EUR8.4 million) while
taxation paid was EUR1.7 million (2021: EUR0.8 million).
Capital expenditure outflows amounted to EUR75.7 million (2021:
EUR55.2 million) which included EUR57.4 million of strategic
capital expenditure. Strategic capital expenditure included the
purchase of an eighth container vessel (the CT Pachuca), the
purchase of the Isle of Inisheer and RTG's for Dublin Ferryport
Terminal.
There was EUR24.2 million (2021: EURnil) of dividends paid
during the year. There was EUR49.2 million (2021: EUR19.8 million)
expended in buying back the Group's equity.
The above cash flows resulted in a year-end net debt of EUR171.1
million (2021: EUR142.2 million), which comprised gross borrowings
of EUR167.7 million (2021: EUR123.1 million), lease obligations of
EUR42.4 million (2021: EUR57.6 million) offset by cash balances of
EUR39.0 million (2021: EUR38.5 million). The key net debt / EBITDA
ratio was 1.2 times (2021: 2.6 times) under banking covenant
definitions (see Appendix for further information).
Balance Sheet
A summary balance sheet is presented below:
2022 2021
EURm EURm
Property, plant & equipment and intangible assets 364.2 330.1
Right-of-use assets 41.4 57.2
Long term receivable 10.5 13.6
Retirement benefit surplus 33.6 6.7
Other assets 85.2 65.8
Cash and bank balances 39.0 38.5
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Total assets 573.9 511.9
-------------------------------------------------- ----- -----
Non-current borrowings 160.4 115.8
Non-current lease liabilities 30.7 37.5
Retirement benefit obligations 0.4 1.4
Other non-current liabilities 4.7 1.5
Current borrowings 7.3 7.3
Current lease liabilities 11.7 20.1
Other current liabilities 97.9 78.6
----- -----
Total liabilities 313.1 262.2
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Total equity 260.8 249.7
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Total equity and liabilities 573.9 511.9
-------------------------------------------------- ----- -----
The total net surplus of all defined benefit pension schemes at
31 December 2022 was EUR33.2 million in comparison to a EUR5.3
million surplus at 31 December 2021. The movement principally
reflects a net actuarial gain of EUR29.4 million comprising a fall
in asset values reflective of the investment market and a reduction
in obligations due to higher discount rates. 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 trade receivables. The
movement in non-current borrowings principally relates to the
drawdown during 2022 of EUR52.0 million worth of loans, offset by
EUR7.6 million worth of scheduled repayments.
Shareholders' equity increased to EUR260.8 million from EUR249.7
million at 31 December 2021. The movement includes the profit for
the financial period of EUR59.8 million, actuarial gains arising on
retirement benefit schemes of EUR29.4 million, dividends paid of
EUR24.2 million and buyback of equity of EUR49.2 million.
Financing
The borrowing facilities available to the Group at 31 December
2022 were as follows;
Borrowing Facilities
Committed Committed
facilities facilities
Facility Committed drawn undrawn
EURm EURm EURm EURm
Private placement loan
notes 258.0 50.0 50.0 -
Bank term loans 56.2 56.2 56.2 -
Revolving credit 125.0 75.0 62.0 13.0
Overdraft and other 16.0 16.0 0.6 15.4
-------- --------- ----------- -----------
455.2 197.2 168.8 28.4
------------------------- -------- --------- ----------- -----------
At 31 December 2022, the Group had total lending facilities of
EUR455.2 million available of which EUR197.2 million were committed
facilities. Of these, EUR168.8 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 2022,
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 2022 was 2.40% (2021: 1.60%) for
remaining terms of between three months and 7.5 years. In addition
to borrowings, the Group has recognised lease liabilities at 31
December 2022 relating to right-of-use assets amounting to EUR42.4
million.
These facilities, together with undrawn committed facilities of
EUR28.4 million and cash generated from operations, will be used to
support the long-term strategic development of the Group.
Fuel
2022 2021 Change
Fuel costs EUR124.0m EUR55.1m +125.0%
------------ --------- -------- -------
Group fuel costs in 2022 amounted to EUR124.0 million (2021:
EUR55.1 million). Bunker consumption was 161,900 tonnes in 2022
(2021: 129,400 tonnes). The increase in consumption was primarily
due to increased sailings on the Dover -- Calais service. The
average cost per tonne of heavy fuel oil (HFO) fuel in 2022 was 47%
higher than in 2021 while marine gas oil (MGO) was 107% higher than
in 2021.
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
Following the easing of travel restrictions and the subsequent
increase in our tourism carryings, the Directors declared and paid
during 2022 a final dividend of 9.00 cent per ordinary share for
2021 and an interim dividend of 4.64 cent per ordinary share for
2022. Dividends paid during the year totalled EUR24.2 million.
Payment of dividends had been suspended during 2020 and 2021 due to
the effects of the Covid-19 travel restrictions on the financial
performance of the Group.
During the year, the Company bought back a total of 12.0 million
shares which were cancelled. The total consideration paid for these
shares was EUR49.2 million (2021: EUR19.8 million). The Directors
are proposing a final dividend in respect of 2022 of 9.45 cent per
share subject to shareholder approval at the AGM on 11 May 2023,
which will be paid on 9 June 2023 to shareholders on the register
at close of business on 19 May 2023.
Exit of United Kingdom from the European Union
The Group remains concerned at 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. The Group notes the proposals
contained in the recent Windsor Framework, which as yet is not
ratified by the UK Government and the EU. We welcome this
initiative to introduce appropriate checks on goods moving between
Britain and Ireland including movements via ports in Northern
Ireland.
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 further
initiatives across the Group and continued initiatives that
commenced in prior years, highlights of which include the
significant progress we have made in reducing the emissions of our
container terminal operations. Continuing our expansion and
modernisation programme at Dublin Port, 2022 was a year of further
material investment in this business. With the investment we have
made and continue to make in more environmentally friendly terminal
equipment, we are on course to achieve a reduction in the emissions
from our container terminal operations of 70 per cent by 2025 over
the course of the programme. With the progress made to date and the
expected future investment, we expect to achieve our target of net
zero emissions in our container terminal operations by 2030. We
also continue to develop our environmental reporting processes in
co-ordinating the collection of relevant data and considering how
best this can be harnessed to affect behaviours in order to drive
further improvement. This also provides the basis for increasing
transparency over our sustainability credentials. We continue to
engage with our stakeholders to understand their key pressing and
material issues which we will evaluate and implement in our day to
day business when appropriate.
We introduced the Isle of Inisheer onto our Dover -- Calais
service as the third vessel on 26 April 2022. Joining the Isle of
Inishmore and the Isle of Innisfree, this service now offers up to
30 sailings per day. Having commenced in June 2021, our service on
Dover -- Calais offers a genuine alternative for all users of the
Channel Route.
The Group also purchased a container vessel, the CT Pachuca,
during the year. This brings the total number of container vessels
owned by the Group to eight and upon delivery the vessel was
chartered to Group subsidiary Eucon.
During 2022, the Group took delivery of a further five remote
control semi-automated electric RTG's which brings the total number
of electrically powered RTG's at DFT to nine. Of the nine RTG's,
six are fully commissioned and in use with a further three to be
commissioned during Q2 2023 continuing our transition to this more
environmentally efficient mode of operation. The Group has also
ordered one new electrically powered ship-to-shore crane (STS) for
delivery in 2023. The deployment of these electric cranes puts us
on track to meet our emissions reduction targets of net zero
emissions by 2030.
Belfast Container Terminal (BCT) 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 2022. The project included extensive
civil works and the delivery of two new ship-to-shore gantry cranes
along with eight new electrically operated RTGs of which five are
now in service. A further three RTG's are scheduled to be
commissioned in the second half of 2023. As per the investment in
DFT, this investment is essential to reducing emissions in our
terminal operations.
The Group commenced operations at the new Dublin Inland Port in
January 2022, under a 20 year lease agreement awarded following a
public tender process. Trading as Dublin Ferryport Inland Depot
(DFID), this facility will be used for the remote storage,
maintenance and upgrade of empty container boxes, releasing
valuable capacity for the handling of containers in the port area.
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. The Group has continued 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 2022,
including the commissioning of two additional electric cranes for
our Dublin Ferryport Terminal. Three further electric RTG's are on
site and will be commissioned in 2023.
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, the Group collates and
harnesses this data as a tool to promote environmental
responsibility within the workforce. While we recognise that there
is and always will be additional work to do in this space, we
consider the ongoing improvement and progress together with the
firm foundation established from prior years will enable the
further development of 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 and we will
recover the costs of same, either by increased efficiencies or by
passing associated costs through to customers.
The Group is aware that our stakeholders require us to be
environmentally focused and the Group is committed to continuous
improvement in everything that we do. Freight remains the backbone
of the local Irish and European economies. Our efforts in greening
the maritime industry is a vital part of moving the wider European
economy to a sustainable footing in the face of the rising
challenge from climate change.
Current Trading and Outlook
2023 Trading to date
1/1/23 -- 4/3/23 1/1/22 -- 4/3/22 Change
Volumes '000 '000
Cars 50.0 35.2 +42.0%
RoRo freight units 111.9 92.4 +21.1%
Containers shipped (teu) 53.7 56.2 (4.4%)
Port lifts 51.9 55.0 (5.6%)
---------------- ---------------- ------
We have experienced strong growth in car and RoRo freight
volumes in 2022, due partly to the unwinding of Covid-19
restrictions and also due to the expansion of our services on the
Dover -- Calais route. Container volumes were down slightly as they
are more impacted by the slowdown in world growth and international
trade volumes.
In the period from 1 January 2023 to 4 March 2023, Irish Ferries
carried 50,000 cars, an increase of 42.0% over the same period in
the prior year. While these increases are encouraging, it is over a
seasonally less significant time of the year for passenger travel.
We do see an opportunity for material growth in our passenger
business with the expected return to pre-pandemic levels.
RoRo volumes in the Ferries Division have also started strongly
in 2023. Overall, Irish Ferries RoRo volumes are up 21.1% on the
same period in the prior year to 111,900 RoRo units. We expect that
2023 sees a continuation of the trend of freight customers
returning to the landbridge and we are hopeful that the Windsor
Framework will remove the distortion from the non-implementation of
the Northern Ireland Protocol. We welcome recent calls for the
establishment of Green lanes on ferry routes between the UK and the
Republic of Ireland, for traffic destined for Northern Ireland.
This will ensure freight moves on and off the island of Ireland in
the most efficient, timely and environmentally friendly manner.
The Container and Terminal Division has seen a reduction in
containers shipped in the period from 1 January 2023 to 4 March
2023 of 4.4%. The number of terminal lifts has seen a similar drop
of 5.6% in the same period. This is indicative of a slowdown in the
global economy and is not unexpected. However, the recent and
ongoing investment in capacity expansion for longer term growth and
plant modernisation at our container terminals will provide a
platform for both growth and more efficient operations at our
Dublin terminal. This will be further aided by the operations at
our new Dublin Inland Port facility which commenced during
2022.
We note the ever-increasing expectations and regulatory
requirements to reduce the effects of our operations on the
environment. While the Group acknowledges that its operations have
an inevitable impact on the environment it does so in the knowledge
that it operates essential services from the island of Ireland,
which was clearly evident during the worst of the Covid-19
lockdowns. Our maritime transport operations remain the most
environmentally sustainable form of transport for facilitating
trade and movement of goods and people on and off the island.
Nevertheless, reducing our impact on the environment is embedded in
the Group's DNA through maximising the effectiveness and efficiency
in our operations while continuing to invest in appropriate
technologies to reduce our impact on the environment.
While there is some uncertainty around economic growth rates, we
look forward to continued growth during 2023 through the leveraging
of our recent investments and the continued support of all
customers.
Condensed Consolidated Income Statement
for the year ended 31 December 2022
Notes 2022 2021
EURm EURm
Revenue 2 584.9 334.5
Depreciation and amortisation (60.5) (52.5)
Employee benefits expense (26.8) (20.8)
Other operating expenses 2 (430.9) (261.4)
--------- ------------- -------
Operating profit / (loss) 66.7 (0.2)
Finance income 0.1 0.1
Finance costs (4.3) (4.0)
------------- -------
Profit / (loss) before taxation 62.5 (4.1)
Income tax expense 3 (2.7) (0.8)
--------- ------------- -------
Profit / (loss) for the financial year: all attributable
to equity holders of the parent 59.8 (4.9)
------------- -------
Earnings per ordinary share
-- expressed in euro cent per share
Basic 4 33.6 (2.6)
------------------------------------------------ --------- ------------- -------
Diluted 4 33.2 (2.6)
------------------------------------------------ --------- ------------- -------
Condensed Consolidated Statement of Comprehensive Income
for the year ended 31 December 2022
2022 2021
Notes EURm EURm
Profit / (loss) for the financial
year 59.8 (4.9)
----- -------
Items that may be reclassified subsequently to
profit or loss:
Currency translation adjustment (2.5) 1.3
Items that will not be reclassified subsequently
to profit or loss:
Actuarial gain on defined benefit
obligations 7 29.4 7.1
Deferred tax on defined benefit
pension schemes (2.4) (0.9)
----- -------
Other comprehensive income for the financial year 24.5 7.5
----- -------
Total comprehensive income for the
financial year: all attributable
to equity holders of the parent 84.3 2.6
----- -------
Condensed Consolidated Statement of Financial Position
as at 31 December 2022
2022 2021
Notes EURm EURm
Assets
Non-current assets
Property, plant and equipment 362.3 328.2
Intangible assets 1.9 1.9
Right-of-use assets 41.4 57.2
Retirement benefit surplus 7 33.6 6.7
Finance lease receivable 10.5 13.6
Deferred tax asset 0.1 0.1
449.8 407.7
-------------------------------------- ----- ----- -----
Current assets
Inventories 5.2 3.8
Trade and other receivables 79.9 61.9
Cash and bank balances 5 39.0 38.5
----- ----- -----
124.1 104.2
-------------------------------------- ----- ----- -----
Total assets 573.9 511.9
----- -----
Equity and liabilities
Equity
Share capital 11.1 11.9
Share premium 20.5 20.4
Other reserves (8.2) (8.1)
Retained earnings 237.4 225.5
----- -----
Equity attributable to equity holders 260.8 249.7
-------------------------------------- ----- ----- -----
Non-current liabilities
Borrowings 5 160.4 115.8
Lease liabilities 5 30.7 37.5
Deferred tax liabilities 3.6 1.3
Provisions 1.1 0.2
Retirement benefit obligation 7 0.4 1.4
----- ----- -----
196.2 156.2
-------------------------------------- ----- ----- -----
Current liabilities
Borrowings 5 7.3 7.3
Lease liabilities 5 11.7 20.1
Trade and other payables 96.2 75.5
Provisions 1.7 3.1
116.9 106.0
-------------------------------------- ----- ----- -----
Total liabilities 313.1 262.2
----- -----
Total equity and liabilities 573.9 511.9
----- -----
Condensed Consolidated Statement of Changes in Equity
for the year ended 31 December 2022
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2022 11.9 20.4 (8.1) 225.5 249.7
Profit for the financial year - - - 59.8 59.8
Other comprehensive income - - (2.5) 27.0 24.5
------- ------- -------- -------- ------
Total comprehensive income for
the financial year - - (2.5) 86.8 84.3
------- ------- -------- -------- ------
Employee share-based payments
expense - - 3.0 - 3.0
Share issue - 0.1 - - 0.1
Dividends - - - (24.2) (24.2)
Share buyback (0.8) - 0.8 (49.2) (49.2)
Settlement of employee equity
plans through market purchase - - - (2.9) (2.9)
Transferred to retained earnings
on exercise of share options - - (1.4) 1.4 -
------- ------- -------- -------- ------
(0.8) 0.1 (0.1) 11.9 11.1
--------------------------------- ------- ------- -------- -------- ------
Balance at 31 December 2022 11.1 20.5 (8.2) 237.4 260.8
------- ------- -------- -------- ------
Analysed as follows:
Share capital 11.1
Share premium 20.5
Other reserves (8.2)
Retained earnings 237.4
------
260.8
--------------------------------- ------- ------- -------- -------- ------
Other Reserves comprise the following:
Share
Capital Options Translation
Reserve Reserve Reserve Total
EURm EURm EURm EURm
Balance at 1 January 2022 7.8 4.7 (20.6) (8.1)
------- ------- ----------- -----
Employee share-based payments
expense - 3.0 - 3.0
Other comprehensive income - - (2.5) (2.5)
Share buyback 0.8 - - 0.8
Transferred to retained earnings
on exercise of share options - (1.4) - (1.4)
------- ------- ----------- -----
0.8 1.6 (2.5) (0.1)
--------------------------------- ------- ------- ----------- -----
Balance at 31 December 2022 8.6 6.3 (23.1) (8.2)
------- ------- ----------- -----
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 Cash Flows
for the year ended 31 December 2022
2022 2021
Notes EURm EURm
Profit / (loss) for the financial year 59.8 (4.9)
Adjustments for:
Finance costs (net) 4.2 3.9
Income tax expense 2.7 0.8
Retirement benefit scheme movements 6 1.1 0.6
Depreciation of property, plant and
equipment 38.5 31.9
Depreciation of right-of-use assets 21.6 20.3
Amortisation of intangible assets 0.4 0.3
Share-based payment expense 3.0 1.3
(Decrease) / increase in provisions (0.5) 1.1
Working capital movements 6 1.2 11.7
----- ------ ---------
Cash generated from operations 132.0 67.0
Income taxes paid (1.7) (0.8)
Interest paid (4.0) (8.4)
------ ---------
Net cash inflow from operating activities 126.3 57.8
------ ---------
Cash flow from investing activities
Net proceeds on disposal of property,
plant and equipment 3.0 2.8
Lease inception costs - (0.3)
Purchases of property, plant and equipment
and intangible assets 6 (75.7) (55.2)
Net cash outflow from investing activities (72.7) (52.7)
------ ---------
Cash flow from financing activities
Share buyback (49.2) (19.8)
Dividends (24.2) -
Repayment of lease liabilities 6 (21.0) (19.8)
Repayment of bank loans (7.6) (87.5)
Drawdown of bank loans 52.0 10.0
Settlement of employee equity plans
through market purchases (2.9) (1.0)
Proceeds on issue of ordinary share
capital 0.1 0.7
Net cash outflow from financing activities (52.8) (117.4)
Net increase / (decrease) in cash and
cash equivalents 0.8 (112.3)
Cash and cash equivalents at the beginning
of the year 38.5 150.4
Effect of foreign exchange rate changes (0.3) 0.4
------ ---------
Cash and cash equivalents at the end
of the year 5 39.0 38.5
----- ------ ---------
Notes to the Condensed Financial Statements
for the year ended 31 December 2022
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 2022 except as noted below.
The financial information does not include all the information and
disclosures required in the annual financial statements. The 2022
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 auditor has reported on the
financial statements for the year ended 31 December 2022 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 2021 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 2022
Standard Description Effective Date
for periods commencing
----------------------------- --------------------------------- -----------------------
IFRS 16 (amendment) Covid-19 related rent concessions 1 April 2021
beyond 30 June 2021
----------------------------- --------------------------------- -----------------------
IAS 37 (amendments) Onerous Contracts - Cost of 1 January 2022
Fulfilling a Contract
----------------------------- --------------------------------- -----------------------
Annual Improvements 1 January 2022
to IFRS Standards 2018--2020
----------------------------- --------------------------------- -----------------------
IAS 16 (amendments) Property, Plant and Equipment 1 January 2022
- Proceeds before Intended
Use
----------------------------- --------------------------------- -----------------------
IFRS 3 (amendments) Reference to the Conceptual 1 January 2022
Framework
----------------------------- --------------------------------- -----------------------
The above amended standards have been applied in the preparation
of the financial statements for the year ended 31 December 2022 but
did not have any material impact on the results or financial
position of the Group.
Standards effective for the Group from 1 January 2023 or
later
Standard Description Effective Date
for periods commencing
------------------------ ------------------------------ -----------------------
IAS 1 (amendments) Classification of liabilities 1 January 2023
as current or non-current *
------------------------ ------------------------------ -----------------------
IAS 1 (amendments) Disclosure of Accounting 1 January 2023
Policies
------------------------ ------------------------------ -----------------------
IAS 1 (amendments) Non-current Liabilities with 1 January 2023
Covenants *
------------------------ ------------------------------ -----------------------
IFRS 17 Insurance Contracts 1 January 2023
------------------------ ------------------------------ -----------------------
IAS 8 (amendments) Definition of Accounting 1 January 2023
Estimates
------------------------ ------------------------------ -----------------------
IAS 12 (amendments) Deferred Tax related to assets 1 January 2023
and liabilities arising from
a single transaction
------------------------ ------------------------------ -----------------------
IFRS 16 (amendments) Lease Liability in a Sale 1 January 2023
and Leaseback *
------------------------ ------------------------------ -----------------------
IFRS 10 Consolidated Sale or Contribution of Assets TBD *
Financial Statements between an Investor and its
and IAS 28 Investments Associate or Joint Venture
in Associates and Joint
Ventures (amendments)
------------------------ ------------------------------ -----------------------
* Not yet endorsed by the EU
The above standards and amendments standards have not been
applied in the preparation of the financial statements for the year
ended 31 December 2022. 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 Executive 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:
2022 2021
EURm EURm
Ferries
Passenger 162.7 59.0
Freight 184.7 94.6
Charter and other 52.5 21.9
------ ------
399.9 175.5
----------------------- ------ ------
Container and Terminal
Freight 221.5 174.0
------ ------
Inter-segment revenue (36.5) (15.0)
------ ------
Total 584.9 334.5
----------------------- ------ ------
By geographic origin of booking:
2022 2021
EURm EURm
Ireland 202.4 135.6
United Kingdom 142.2 64.1
Netherlands 99.7 73.7
Belgium 47.7 36.7
France 20.2 4.5
Poland 18.8 4.5
Austria 10.8 0.8
Other 43.1 14.6
----- -----
584.9 334.5
--------------- ----- -----
No single external customer in the current or prior financial
year amounted to 10 per cent of the Group's revenues.
ii) Profit / (loss) for the financial year
Ferries Container & Terminal Group Total
2022 2021 2022 2021 2022 2021
EURm EURm EURm EURm EURm EURm
Operating profit /
(loss) 46.4 (17.4) 20.3 17.2 66.7 (0.2)
Finance income 0.1 - - 0.1 0.1 0.1
Finance costs (3.1) (2.0) (1.2) (2.0) (4.3) (4.0)
Profit / (loss) before
tax 43.4 (19.4) 19.1 15.3 62.5 (4.1)
Income tax expense (1.3) (0.1) (1.4) (0.7) (2.7) (0.8)
----- ------ ---------- ---------- ------ -----
Profit / (loss) for
the financial year 42.1 (19.5) 17.7 14.6 59.8 (4.9)
----------------------- ----- ------ ---------- ---------- ------ -----
iii) Other operating expenses
Ferries Container & Terminal Group Total
2022 2021 2022 2021 2022 2021
EURm EURm EURm EURm EURm EURm
Fuel 104.6 43.1 19.4 12.0 124.0 55.1
Labour 48.3 28.7 12.6 9.7 60.9 38.4
Port costs 69.0 44.0 35.2 33.7 104.2 77.7
Haulage - - 56.6 50.0 56.6 50.0
Other 61.3 20.7 60.4 34.5 121.7 55.2
Inter-segment (1.2) (1.2) (35.3) (13.8) (36.5) (15.0)
----- ----- ---------- ---------- ------ ------
Other operating
expenses 282.0 135.3 148.9 126.1 430.9 261.4
---------------- ----- ----- ---------- ---------- ------ ------
iv) Statement of Financial Position
Container &
Ferries Terminal Group Total
2022 2021 2022 2021 2022 2021
EURm EURm EURm EURm EURm EURm
Assets
Segment assets 422.5 367.0 112.4 106.4 534.9 473.4
Cash and cash
equivalents 34.5 29.9 4.5 8.6 39.0 38.5
-------- ------- ------ -------------- ------ -----
Consolidated total
assets 457.0 396.9 116.9 115.0 573.9 511.9
--------------------- -------- ------- ------ -------------- ------ -----
Liabilities
Segment liabilities 66.7 49.8 36.3 31.7 103.0 81.5
Borrowings and lease
liabilities 174.6 140.0 35.5 40.7 210.1 180.7
-------- ------- ------ -------------- ------ -----
Consolidated total
liabilities 241.3 189.8 71.8 72.4 313.1 262.2
--------------------- -------- ------- ------ -------------- ------ -----
3. Income tax expense
2022 2021
EURm EURm
Current tax 2.7 0.7
Deferred tax - 0.1
---- ----
Income tax expense for the year 2.7 0.8
---------------------------------- ---- ----
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 EUR2.7 million (2021: EUR0.7 million) and a
deferred tax charge of EURnil million (2021: EUR0.1 million.
The total expense for the year is reconciled to the accounting
profit as follows:
2022 2021
EURm EURm
Profit / (loss) before tax 62.5 (4.1)
Tax at the domestic income tax rate of 12.5% (2021:
12.5%) 7.8 -
Losses not eligible for surrender under loss provisions - 2.4
Effect of tonnage relief (6.6) (2.2)
Difference in effective tax rates 0.3 0.8
Other items 1.2 (0.2)
----- -----
Income tax expense recognised in the Consolidated
Income Statement 2.7 0.8
-------------------------------------------------------- ----- -----
4. Earnings per share
2022 2021
Number of shares '000 '000
Shares in issue at the beginning of the year 182,795 186,980
Effect of shares issued during the year 23 134
Effect of share buybacks and cancellation in the year (5,044) (398)
------- -------
Weighted average number of ordinary shares for the
purpose of basic earnings per share 177,774 186,716
Dilutive effect of employee equity plans where vesting
conditions not met 2,363 -
------- -------
Weighted average number of ordinary shares for the
purposes of diluted earnings per share 180,137 186,716
------------------------------------------------------- ------- -------
Denominator for earnings and diluted earnings per share
calculations
Equity awards under the ICG Performance Share Plan are initially
treated as contingently issued shares because any shares which may
in future be issued are contingent on the satisfaction of
performance conditions set at the date of grant, in addition to the
passage of time. Where the performance conditions have been met at
the end of the performance period and the awards remain
unexercised, they are no longer treated as contingently issuable
and are treated as issued shares from the end of the performance
period and included in the weighted average number of ordinary
shares for the purpose of basic earnings per share.
Those contingently issuable shares for which the performance
period has not yet expired, are included in the weighted average
number of ordinary shares for the purposes of diluted earnings per
share unless the performance conditions governing their
exercisability have not been met at the reporting date.
A total of 664,484 (2021: 3,646,828) unvested share options
outstanding at the reporting date have been excluded from the
weighted average number of ordinary shares for the purposes of
diluted earnings per share as they were either antidilutive or had
not met the performance conditions governing their
exercisability.
The earnings used in both the adjusted basic and adjusted
diluted earnings per share are adjusted to take into account the
net interest on defined benefit obligations and the effect of
non-trading items after tax. The calculation of the basic and
diluted earnings per share attributable to ordinary equity holders
of the parent is based on the following data:
2022 2021
Earnings 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 59.8 (4.9)
Effect of net interest income on defined benefit
assets (0.1) (0.1)
------ -----
Earnings for the purpose of adjusted basic and
adjusted diluted earnings per share 59.7 (5.0)
------------------------------------------------------- ------ -----
Cent Cent
------ -----
Basic earnings per share 33.6 (2.6)
------------------------------------------------------- ------ -----
Diluted earnings per share 33.2 (2.6)
------------------------------------------------------- ------ -----
Adjusted basic earnings per share 33.6 (2.7)
------------------------------------------------------- ------ -----
Adjusted diluted earnings per share 33.1 (2.7)
------------------------------------------------------- ------ -----
5. 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:
Bank Loan Lease Origination
Cash Loans Notes Obligations 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)
----------------------------- ----- ------- ------ ----------- ----------- -------
Changes from cash
flows:
Repayment of borrowings - 7.6 - - - 7.6
Lease payments - - - 21.0 - 21.0
Loan drawdown - (52.0) - - - (52.0)
Net increase in
cash and cash equivalents 0.8 - - - - 0.8
Non-cash flow changes:
Amortisation - - - - (0.2) (0.2)
Lease liabilities
recognised - - - (6.2) - (6.2)
Currency adjustment (0.3) - - 0.4 - 0.1
----- ------- ------ ----------- ----------- -------
0.5 (44.4) - 15.2 (0.2) (28.9)
----------------------------- ----- ------- ------ ----------- ----------- -------
At 31 December 2022
Current assets 39.0 - - - - 39.0
Creditors due within
one year - (7.3) - (11.7) 0.2 (18.8)
Creditors due after
one year - (110.9) (50.0) (30.7) 0.3 (191.3)
----- ------- ------ ----------- ----------- -------
39.0 (118.2) (50.0) (42.4) 0.5 (171.1)
----------------------------- ----- ------- ------ ----------- ----------- -------
ii) The maturity profile and available borrowing and cash
facilities available to the Group at 31 December 2022 are set out
in the following table:
Maturity Profile
Less Between Between
On-hand than 1 -- 2 2 -- 5 More than
Facility Undrawn / drawn 1 year years years 5 years
EURm EURm EURm EURm EURm EURm EURm
Cash - - 39.0 - - - -
-------- ------- -------- ------- ------- ------- ---------
Committed lending
facilities
Bank overdrafts 15.4 15.4 - - - - -
Bank loans 131.2 13.0 118.2 7.5 69.5 22.5 18.7
Loan notes 50.0 - 50.0 - 50.0 - -
Origination fees (0.5) - (0.5) (0.2) (0.1) (0.1) (0.1)
Leases 42.4 - 42.4 11.7 4.1 7.2 19.4
-------- ------- -------- ------- ------- ------- ---------
Committed lending
facilities 238.5 28.4 210.1 19.0 123.5 29.6 38.0
-------- ------- -------- ------- ------- ------- ---------
Uncommitted lending
facilities
Bank loans 50.0
Loan notes 208.0
--------
Uncommitted lending
facilities 258.0
-------------------- -------- ------- -------- ------- ------- ------- ---------
Bank overdrafts facilities are stated net of trade guarantee
facilities utilised of EUR0.6 million (2021: 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.
6. Cash flow components
2022 2021
EURm EURm
Pension scheme movements
Retirement benefit obligations -- current service cost 1.7 1.7
Retirement benefit obligations -- payments (0.6) (1.1)
------ ------
Total retirement benefit scheme movements 1.1 0.6
---------------------------------------------------------- ------ ------
Repayments of lease liabilities
Lease payments (22.3) (21.1)
Interest element of lease payments 1.3 1.3
------ ------
Capital element of lease payments (21.0) (19.8)
Purchases of property, plant and equipment and intangible
assets
Purchases of property, plant and equipment (74.4) (45.6)
Purchases of intangible assets (0.4) (1.0)
Increase in capital asset prepayments (0.9) (8.6)
------ ------
Total purchases of property, plant and equipment and
intangible assets (75.7) (55.2)
Changes in working capital
Increase in inventories (1.4) (1.9)
(Increase) / decrease in receivables (17.0) 2.5
Increase in payables 19.6 11.1
------ ------
Total working capital movements 1.2 11.7
------ ------
7. Retirement benefit schemes
The principal assumptions used for the purpose of the actuarial
valuations were as follows:
2022 2021
Sterling Euro Sterling Euro
Discount rate 4.75% 3.65% 1.85% 1.20%
Inflation rate 2.90% 2.50% 3.60% 2.00%
Rate of increase of pensions 2.20% - 2.20% -
in payment 3.30% 1.50% 3.40% 1.00%
Rate of pensionable salary 0.00% - 0.00% -
increases 1.15% 1.40% 1.10% 1.20%
-------- ------------ --------- ------------
The average life expectancy used in the principal Group schemes
at age 60 is as follows:
2022 2021
Male Female Male Female
Irish Schemes:
Current retirees 26.7 years 29.6 years 26.6 years 29.5 years
Future retirees 29.1 years 31.6 years 29.0 years 31.5 years
UK Schemes:
Current retirees 27.7 years 29.5 years 27.8 years 29.4 years
Future retirees 29.2 years 30.9 years 29.3 years 30.9 years
---------- ---------- ---------- ----------
The amount recognised in the balance sheet in respect of the
Group's defined benefit obligations, is as follows:
Schemes with Liabilities Schemes with Liabilities
in in
Sterling Euro
2022 2021 2022 2021
Equities 10.8 13.5 63.2 68.9
Bonds 14.6 15.1 22.3 27.4
Property - - 0.1 1.0
Insurance contracts - - 7.4 10.9
Other 2.9 3.4 3.5 5.6
------------ ------------ ------------ ------------
Market value of scheme
assets 28.3 32.0 96.5 113.8
Present value of scheme
liabilities (16.5) (28.3) (75.1) (112.2)
------------ ------------ ------------ ------------
Surplus in schemes 11.8 3.7 21.4 1.6
------------------------ ------------ ------------ ------------ ------------
The movement during the year is reconciled as follows:
2022 2021
Movement in retirement benefit schemes EURm EURm
Opening surplus / (deficit) 5.3 (1.2)
Current service cost (1.7) (1.7)
Employer contributions paid 0.6 1.1
Net interest income 0.1 0.1
Actuarial gain 29.4 7.1
Other (0.5) (0.1)
----- -----
Net surplus 33.2 5.3
--------------------------------------- ----- -----
Schemes in surplus 33.6 6.7
Schemes in deficit (0.4) (1.4)
----- -----
Net surplus 33.2 5.3
--------------------------------------- ----- -----
8. 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 2022, 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.
9. 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 2022 will be annexed to the annual return for 2022. The
auditor has made a report, without any qualification on their
audit, of the financial statements in respect of the financial year
ended 31 December 2022 and the Directors approved the financial
statements in respect of the financial year ended 31 December 2022
on 8 March 2023. A copy of the financial statements in respect of
the year ended 31 December 2021 has been annexed to the annual
return for 2022 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 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 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. Reconciliations of these APMs outlined
below are contained in the Appendix to this statement.
APM Description Benefit of APM
-------------------- ------------------------------------------- ------------------------------
EBITDA EBITDA represents earnings before Eliminates the effects
interest, tax, depreciation, impairment of financing and accounting
and amortisation. decisions to allow assessment
of the profitability
and performance of the
Group.
-------------------- ------------------------------------------- ------------------------------
EBIT EBIT represents earnings before interest Measures the Group's
and tax. earnings from ongoing
operations.
-------------------- ------------------------------------------- ------------------------------
Free cash flow Free cash flow comprises operating Assesses the availability
before strategic cash flow less capital expenditure to the Group of funds
capital expenditure before strategic capital expenditure for reinvestment or for
which comprises expenditure on vessels return to shareholders.
excluding annual overhaul and repairs,
and other assets with an expected
economic life of over 10 years which
increases capacity or efficiency of
operations.
-------------------- ------------------------------------------- ------------------------------
Net debt Net debt comprises total borrowings Measures the Group's
less cash and cash equivalents. ability to repay its
debts if they were to
fall due immediately.
-------------------- ------------------------------------------- ------------------------------
Leverage Measured based on bank covenant definitions Measures the Group's
being net debt excluding lease liabilities ability to draw funding.
over EBITDA adjusted for net lease
effects and non-cash trading items.
-------------------- ------------------------------------------- ------------------------------
Adjusted Basic EPS is adjusted to exclude the non- Directors consider Adjusted
Earnings Per trading items and net interest (income) Basic EPS to be a key
Share (EPS) / cost on defined benefit obligations. indicator of long-term
financial performance
and value creation of
a public listed company.
-------------------- ------------------------------------------- ------------------------------
ROACE ROACE represents return on average Measures the Group's
capital employed. Operating profit profitability and the
(before non-trading items) expressed efficiency with which
as a percentage of average capital its capital is employed.
employed (consolidated net assets,
excluding net (debt) / cash, retirement
benefit surplus / (obligation) and
asset under construction net of related
liabilities.
-------------------- ------------------------------------------- ------------------------------
Pre-IFRS 16 Use of the term Pre-IFRS 16 denotes Measurement of covenants
that the APM or IFRS measure has been for bank facility purposes
adjusted to remove the effects of
the application of IFRS 16: Leases.
-------------------- ------------------------------------------- ------------------------------
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.
--------- ---------------------------------------------------------------
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).
--------- ---------------------------------------------------------------
10. Events after the Reporting Date
The Board is proposing a final dividend of 9.45 cent per
ordinary share amounting to EUR16.1 million out of the
distributable reserves of the Company.
There have been no other material events affecting the Group
since 31 December 2022.
11. Board Approval
This preliminary announcement was approved by the Board of
Directors of Irish Continental Group plc on 8 March 2023.
12. 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 2023, will be notified to
shareholders in April 2023.
Appendix: Reconciliation of APMs
for the year ended 31 December 2022
Alternative Performance Measures
Certain financial measures set out in our Preliminary Statement
of Results for the year ended 31 December 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.
(i) 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 2022 2021
EURm EURm
Condensed Consolidated Income
Operating profit / (loss) Statement 66.7 (0.2)
Condensed Consolidated Income
Depreciation and amortisation Statement 60.5 52.5
------------------------------ ----- -----
EBITDA 127.2 52.3
-------------------------------------------------------------- ----- -----
(ii) Free Cash Flow
Free cash flow comprises Net Cash Inflow 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 2022 2021
EURm EURm
Net cash inflow from Condensed Consolidated Statement
operating activities of Cash Flows 126.3 57.8
Capital expenditure
excluding strategic Condensed Consolidated Statement
capital expenditure of Cash Flows * (18.3) (13.5)
--------------------------------- -------- --------
Free cash flow before
strategic capital expenditure 108.0 44.3
Condensed Consolidated Statement
Strategic capital expenditure of Cash Flows * (57.4) (41.7)
--------------------------------- -------- --------
Free cash flow after
strategic capital expenditure 50.6 2.6
------------------------------------------------------------------ -------- --------
* The total of the capital expenditure amounts set out above is
included as a single line item in the Condensed Consolidated
Statement of Cash Flows.
(iv) Leverage
The debt leverage ratio is based on the definition in our
lending agreements. The debt leverage ratio provides an indication
of the Group's debt capacity. The below table sets out the ratio at
the reporting date:
Financial Statement Reference 2022 2021
EURm EURm
EBITDA See Note (i) 127.2 52.3
Capital repayment on Condensed Consolidated Statement
lease receivable of Cash Flows 3.0 2.8
Lease payments Note 6 (22.3) (21.1)
--------------------------------- ------ ------
EBITDA for covenant
purposes 107.9 34.0
-------------------------------------------------------- ------ ------
Financial Statement Reference 2022 2021
EURm EURm
Net Debt (pre IFRS 16) See Note (iii) 128.7 84.6
Bank deposits subject
to lien 3.5 3.5
Trade guarantees Note 5 0.6 0.6
Origination fees Note 5 0.5 0.7
------------------------------ ----- ----
Net Debt for covenant
purposes 133.3 89.4
------------------------------------------------------- ----- ----
Covenant Level (Times) Times Times
Leverage ratio Max 3.0x (2021: Max 4.0x) 1.2x 2.6x
------------------------- ----- -----
(v) 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 4.
(END) Dow Jones Newswires
March 09, 2023 02:00 ET (07:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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