2003 'challenging year' for Irish Continental

Ferry group Irish Continental has reported turnover up 4% to €304.3m for the year ending December 2003. Pre-tax profits for what the company called 'a challenging year' declined 13% to €22.5m, excluding an exceptional charge of €4.8m for restructuring.

Operating profit before depreciation, amortization and exceptional items for the year was €53.4m, down from €63.2m in 2002. Operating profit before exceptional items for the year was €28.9m, against €34.8m the previous year.

The Ferries Division reported turnover of €170.2m, down from €172.3m in 2002. The core Irish Ferries operation contributed profit before financing and restructuring charges of €21m, down from €25m the previous year.

Irish Ferries Passenger revenue rose for the year to €100.9 from €99.9 and freight revenue increased to €56m, from €54m in 2002. During the year the group operated a total of 5004 sailings, 4% more than the previous year's 4,821 sailings.

The number of cars carried during the year was up 2% at 407,000 while its Roll-on Roll-off units was up 9% at 201,000. The company said the increased volume, however, was offset by currency effects resulting from the stronger euro and a competitive pricing environment.

Looking ahead the company said: "Arising from this very competitive pricing environment, we continue to focus on generating cost savings from our operations. The fall in the value of the US dollar is favourable to us, although this is partially offset by continued high oil prices and the strength of the Euro versus Sterling where the bulk of our passenger revenue is generated", it said.

"The success of our current cost saving programme will be critical to the success of the Group going forward. With our quality asset base and continued strong cash flow we are well positioned for the future", it added.

The company also announced today that chairman Tom Toner is to retire on 30 April after 16 years in the role. He will be succeeded by John McGuckian, currently senior independent non-executive director. Liam Booth, who served as Director of the company since 1987, will also retire from the Board on April 30.