ICG revenues fall 25% in 4 months

REVENUES for the first four months of 2009 at ferry and freight services business, Irish Continental Group (ICG) fell by 25%, on a year-on-year basis, according to the latest trading update from the group, issued yesterday.

In the statement, ICG said that the revenues of €76.2m, for the period, were offset to a degree by a 24% decline (to €68.2m) in operating costs, thanks mainly to lower payroll, fuel and port charges.

Earnings before interest, tax, depreciation and amortisation (EBITDA), for the first four months, amounted to €8m – which was down from €12.2m for the same period last year.

ICG’s tough start to the year spread to its passenger numbers too – with 5% less cars being carried compared to the same period last year (98,000 in total between the beginning of January and the end of April) and a 10% total passenger decline, on a year-on-year basis, when foot and coach passengers are included.

However, the group did see a 28% like-for-like rise in car passenger levels over the Easter holiday period; attributing the rise to “extremely competitive” fare offerings it has introduced. The year-to-date has also seen a 23% reduction in freight cargo business.

Although, the long-running takeover saga surrounding ICG ended in failure last month, after the One-51/Doyle Shipping Group-led Moonduster consortium failed to agree funding arrangements with its bankers, ICG said yesterday that it remains in a strong liquid position and has shaved nearly €11m off its net debt since the start of this year, bringing it down to approximately €38m.

With regard to its outlook for the year ahead, the group said that it will continue to “actively manage” its cost base, with significant payroll reductions – including a pay freeze for employees – planned to, as the board said, “leave us in a strong position to benefit when the markets, in which we operate, recover”.

While the cost management issue will not result in redundancies, ICG will continue its policy of not replacing those employees who leave naturally – a policy which has seen the group’s workforce fall by about 8% – to 438 people – over the last year.