Strength of sterling against euro leads to fall in ferry company’s profits

PROFITS at the company that operates the Cork to Swansea ferry route fell slightly last year to E4,114.

According to accounts just filed at the Companies Registration Office, the company took a hit of over E250,000 on the strength of sterling against the euro, which reduced its annual earnings.

Had this foreign exchange loss been excluded, Swansea Cork Ferries would have made a profit of 258,447.

The company also recorded a small dip in annual turnover in the year to end December 2001 from E14.2 million to E14.1m. The accounts show that the drop came from its passenger ferry business, with turnover here down from E12.9m to E12.8m.

But the freight carrying side made up most of the shortfall, increasing its turnover from E1.26m to E1.35m.

Cash at bank fell from E1.2m to E997,479, though shareholders’ funds were up a touch at E1.38m. The number of people employed by the company dropped from 43 to 40, mainly as a result of a fall in the number of sales people employed.

However, its wages and salary bill for the year was up at E1.36m, giving an average annual salary of E33,564 per employee.

The company's directors booked a 17% rise in their pay, taking home a total of 300,308, including the salary paid to the managing director Thomas Hunter McGowan.

The company is owned by its directors, who include Desmond Morrissey, Ann Murphy, Frank Boland, Antonis Linardos and Xenophon Voudouroglou.

Even with the dip in profits, the past two years have been much better for the company, after it lost nearly E100,000 in 2001. The success of the service to Swansea is a boost to the Cork economy.

According to a report three years ago by UCC economists, the activities of the company generated nearly E35 million for the local economy and support more than 500 jobs.