Property sale helps port profit rise 168%

The Shannon Foynes Port Company reported a 168% increase in pre-tax profits to €2.96m in 2011 from €1.1m a year earlier, boosted by a once-off €1m property sale.

The company said key performance outputs from 2011 include an 8% increase in cargo throughput to 10.1m tonnes, which comes on top of the 23.5% increase recorded in 2010.

Turnover rose 2.2% to €10.1m, resulting in the operating margin increasing from 25.5% to 28.1%.

The company’s debt was reduced to €14.5m from its 2007 peak of €16.6m, despite investment expenditure of €4.1m incurred in the intervening period.

Port chairman Michael Collins said: “The improvement in profit, tonnages and operating margins in what continues to be an extremely challenging environment confirms the steady progress achieved at Shannon Foynes Port Company over recent years. This is best illustrated by the 180% increase in margins when compared to 2007 levels and is a reason for confidence for the future.”

Profit on disposal of assets was €879,000 net of tax, primarily relating to the disposal of land at Limerick. The company had a profit attributable to the shareholder of approximately €2.73m.

Company chief executive Patrick Keating said: “The company’s improvement in tonnages and financial performance is all the more noteworthy considering the prevailing economic conditions and credit restrictions on the investment sector, which continue to impact on the break bulk and dry bulk trades for the construction sector.”

Mr Keating’s total remuneration package including pension contribution fell €14,000 to €178,000.