Ferry group grows revenue by nearly 6% despite effects of poor weather

Ferry and freight services group Irish Continental has seen revenues grow by nearly 6% in the year to date, despite the negative effects of a weather-wracked first two months.

However, the business also reported a near 40% year-on-year increase in pre-tax losses.

ICG — which owns Irish Ferries and freight firm Eucon — yesterday said group revenue amounted to €76.7m for the first four months of 2014; up 5.8% on the €72.5m reported for the same period last year.

However, operating losses widened from €1.1m to €2.6m, pre-tax losses were up from €3.1m to €4.3m, and operating costs rose by 9%, to €73.8m, due to costs relating to its new vessel, the Epsilon, which has been trading since last December. That addition also drove earnings before certain charges down from €4.8m to €2.9m.

Container freight levels increased 1% year-on-year to the middle of this month. Ferry volumes (car and passengers) represent a healthy recovery, after weather affected figures of 0% and minus-4%, respectively, in the first two months of this year.

Net debt in the first four months was reduced by €21m, to €72.3m. That near 23% drop was boosted by an accelerated charter payment from the early sale of ICG’s Pride of Bilbao vessel.

Given ICG’s business is heavily weighted towards the second half of the year, when a higher proportion of operating profit is generated, yesterday’s update wasn’t received too negatively.

“The trading update is broadly in line with our expectations, with the all important second half to come,” noted Jack Diskin of Goodbody Stockbrokers.

“As a result, we do not envisage making any material changes to our forecasts for full-year EBITDA of €49m-€50m, which is underpinned by the economic recovery in both the UK and Ireland. Therefore, the business is set for another year of strong cash generation.”