Irish Ferries owner held back by Brexit uncertainty

The owner of Irish Ferries, Irish Continental Group, says the on-off threat of the UK crashing out of the EU has weighed on its business across the Irish Sea and that uncertainty continues.

In a trading update, the company said revenues so far this year for its operations, which include its ferries and container and terminals in Dublin and Belfast, were nonetheless up 10% from the same period in 2018.

Irish Continental Group shares have long been viewed as a ‘Brexit stock’ because its operations can be affected by the sharp drop in sterling and any decline in tourism numbers crossing the Irish Sea since the UK referendum in 2016.

The shares, which rose by around 1% in the latest session, have gained 6% since this time last year.

Roll-on-roll-off freight numbers rose 10.5% and container freight numbers increased 5.7%. The number of cars carried by its ferries division rose by only 1.6%, as tourism revenues gained “in line with volumes in a competitive marketplace”, it said. The company reiterated its plans to take delivery of a new ship for Holyhead in late 2020.

“There is continuing uncertainty over the timing and manner of the proposed exit of the United Kingdom from the European Union,” the company said.

“During the period the group experienced some volatility in carryings as key Brexit dates were approached and subsequently postponed.

“The overall effect of this continuing uncertainty is generating negative impact on consumer sentiment and trade flows as investment decisions are delayed.”

To the end of October, revenues in the container and terminal division rose over 9% to €131m.