Ferries group earnings rise 9%

IRISH Continental Group’s 9% rise in earnings in the third quarter is “a solid statement in a challenging market”, according to NCB Stockbrokers.

EBITDA in the three months to September 30 rose to €25m while a 12% increase in operating profit to €19m for the period was delivered by the car ferries and shipping group. Sales for the quarter were up from €80.6m to €81.2m.

NCB’s John Sheehan said: “This is a solid statement in a challenging market. Cash generation remains consistently high, with projected free cash flow of €37.6m in 2010 representing a yield of 10%. Capital expenditure needs remain minimal and this level of profitability and balance sheet underpins the 6.7% yield. The stock trades on 12.8 x 2010 EPS and we maintain our buy stance.”