#ICGHalfYearReport- Irish Continental Group have released their Half-Yearly Financial Report for the Half Year Ended 30th June 2013.
In a comment by ICG chairman, John B. McGuckian he stated; 'This was a positive half years trading with increases in revenue and operating profit driven mainly by higher freight carryings and lower fuel costs, partially offset by weaker passenger markets. Summer trading has been encouraging across most business areas, with volume growth in passenger and freight offset by weaker sterling, which affects tourism yields".
Results
In the prior year the Group disposed of its subsidiary Feederlink and the comparatives set out in the Interim Management Report have been restated to exclude trading from discontinued operations.
The Board of Irish Continental Group plc (ICG) reports that, in the seasonally less profitable first half of the year, the Group recorded revenue of €120.9 million compared with €117.0 million in the same period in 2012, an increase of 3.3%.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was €15.8million compared with €14.1 million in the same period in 2012.
Operating profit was €6.4 million compared with €4.9 million in 2012.Group fuel costs were €23.9 million compared with €25.7million in the same period in 2012.
There was a net finance charge of €3.1million (2012: €1.2 million) which includes a net pension expense of €1.0 million (2012: €0.8 million) and net bank interest payable of €2.1million (2012: €0.4 million).
Profit before tax was €3.3 million compared with €3.7 million in the first half of 2012. The tax charge amounted to €0.3 million (2012: €0.3million).
On a continuing basis EPS was 16.4c compared with 13.7c in the first half of 2012. Adjusted EPS (before non-trading items and net pension interest expense) amounted to 21.8c (2012: 16.9c).
Dividend
The Board declares an interim dividend of 33centper ICG Unit payable on4October to shareholders on the register at 20 September 2013.
Operational Review: Ferries Division
The division comprises Irish Ferries, a leading provider of passenger and freight ferry services between Ireland and both the UK and Continental Europe (in this 40th anniversary year), and the bareboat chartering of multipurpose ferries to third parties. Irish Ferries operated 2,119 sailings in the period, up 1.5% on 2012.
Revenue in the division was €69.4 million (2012: €69.5 million). Profit from operations increased to €4.0 million (2012: €3.2 million), with a €1.3 million(7.0%) reductionin fuel costs to €17.2 million, partially offset by higher drydock costs incurred on one of the vessels in the fleet.
In the first half passengers carried were up 0.3% at 678,400 while total carscarried in the first half of 2013were 142,500, down 4.2% on the previous year, but at higher yields.
In RoRo freight, Irish Ferries' volumes were up 7.9% to99,700 units, when compared with the first half of 2012.
The MV Kaitaki as previously reported on Afloat.ie, remained on charter to P&O during the period, trading in New Zealand. The charter to P&O terminated on 30 June 2013 following which a new charter commenced, on 1 July 2013 to KiwiRail.
The new charter is for a period of 4 years with an option for the charterer to extend by a further 3 years.
Operational Review: Container and Terminal Divisions
The Container and Terminal Division include the shipping line EUCON as well as the division's strategically located container terminals in Dublin (DFT) and Belfast (BCT).
Turnover in the division was up 8.3 % to € 52.2million (2012: 48.2 million), while profit from operations was € 2.4 million (2012: €1.7 million) reflecting stronger shipping volumes. Fuel costs in the division were down 6.9% at €6.7 million.
Total containers shipped were up11.3% at 140,600 TEU (2012: 126,300 TEU). Units lifted at the division's port facilities in Dublin and Belfast were down 3.5% at 86,400 lifts (2012: 89,500 lifts) with an increase in Dublin being offset by a reduction in Belfast due to ship schedule changes.
Financial Position (EBITDA) for the period was €15.8million compared with €14.1 million in the same period in 2012. Cash flow generated from operations was €23.1million versus €17.6million in 2012.
Capital expenditure in the period was €6.6million (2012: €5.1million) while pension payments in excess of service costs amounted to €2.4 million (2012: €3.0 million).
Free cash flow (net cash from operating activities after capital expenditure) was €14.2million compared with €11.9million in the previous half year.
Net debt at the end of the period a mounted to €105.4million and this compares with €116.0 million at 31 December 2012.
The final dividend for 2012, amounting to €12.3 million was paid during the period. Shareholders equity decreased to €11.8million from €18.0million at 31 December 2012.
The main reasons for the decrease were primarily due to the dividend paid of €12.3 million offset by €6.0 million of total comprehensive income, which includes an actuarial gain arising on the retirement benefit obligation of €2.0 million and a profit for the period of € 3.0 million.
For a further in depth analysis of ICG's Half Yearly Financial Report for the Half Year Ended 30th June 2013, click this link to download a PDF copy.
