Significant decline in earnings expected in ICG’s full-year results
In January, the group reported that operating profit fell (on a year-on-year basis) from €37.5m to €24.1m in the first nine months of last year, with group revenue declining from €265.5m to €197.8m over the same timeframe. However, it did add that net debt had been reduced to its lowest level for 16 years, during the nine months. The group owns the Irish Ferries and Eucon companies among others.
Yesterday, in a results preview note — ICG is scheduled to publish its latest set of annual results next Tuesday — Goodbody Stockbrokers said that it expects the figures to include a 45% drop in adjusted earnings per share to 89c, a 19% fall in group revenue and a €16m drop in earnings before interest, tax, depreciation and amortisation (EBITDA) to €50m.
“Further, declines in volumes passing through the ports sees our port charges and associated charges decline by 20% — broadly in line with the expected fall in revenues,” said Goodbody analyst, Dan Cavanagh.
Analysts are also anticipating more visibility on certain factors, including booking trends coming into the summer season, any recovery in the freight market and to what degree passengers are switching to ferries as airline prices increase.
While a mention from ICG management regarding the group’s Pride of Bilbao ferry may be forthcoming, it is not expected to be overly detailed.
The vessel is chartered out to P&O Ferries in a deal which concludes in October. It was announced at the beginning of the year that P&O wouldn’t be renewing its interest.
While ICG said it had received expressions of interest — from potential purchasers and those wishing to charter it — management added that it viewed the issue as one for 2011, as the agreement runs until the final quarter of this year.
Although ICG is in a closed period it is believed that no progress has been made on the Pride of Bilbao issue in the last couple of months.
