ICG eyes further growth despite sterling weakness following Brexit

Irish Continental Group (ICG) which is the parent company of Irish Ferries, has said it is confident that 2017 will be another year of growth, despite the twin threats of Brexit and rising fuel prices.

The group yesterday reported a near 12% rise in pre-tax profits, for 2016, to €60.4m and a 1.5% rise in yearly revenue to €325.4m.

Earnings per share rose almost 9% to 31.4c, net debt fell over 14% to €37.9m and a 5% increase in final dividend took the dividend for the full year to 11.58c per share. A 10.6% rise brought earnings, on an earnings before interest, tax, depreciation, and amortisation basis, to a record high of €83.5m.

While actual passenger figures were slightly down by 3.2% at 1.62 million, car volumes were up, helping boost Irish Ferries revenues 3% to €209.8m and earnings by 11% to €71m. Revenues rose nearly 5% in the container and terminal division.

Management said while business has benefited from economic growth and lower fuel prices, sterling’s post-Brexit referendum weakening has been negative.

“The group is a net receiver of sterling which means a weaker sterling exchange rate has had a negative effect on year-on-year comparisons. This has been a significant headwind for the group in 2016, as sterling weakened materially during our peak summer season,” said chairman John B McGuckian.

“The weakening of sterling reduced our average tourism yields. However, this was partially offset by the reduction in sterling-denominated costs,” he said. ICG said that trading conditions are favourable and 2017 should be a strong year.

“We look forward to another year of volume growth in our markets, but with higher fuel prices and weaker sterling,” said Mr. McGuckian.