Irish Ferries owner sees first-half losses widen as pandemic effect lingers

Irish Continental Group (ICG) shares fell by over 3% as the Irish Ferries owner said it will continue to shelve investor dividends on the back of a widening in first-half losses due to the lingering negative impact of the pandemic on tourism.

ICG reported a €12.2m pre-tax loss for the first half of this year, compared to a loss of €11.2m for the first half of 2020. However, revenues for the six months to the end of June grew by over 8%, year-on-year, to €141.6m.

“The continuation of the Covid-19 pandemic in the first half of the year continued to create an exceptionally challenging trading environment for the group,” said chairman John B McGuckian.

“Travel restrictions in place in the first half of the year have materially reduced our passenger business,” he said.

Mr McGuckian said ICG welcomed the introduction of the EU’s digital Covid certificate and the recent easing of restrictions for non-essential passenger travel. However, he said the timing of such moves “limits the benefits for our key summer season”.

Despite restrictions, ICG said it managed to maintain services on all its shipping routes, “maintaining critical logistical links to the island of Ireland”.

“These services have facilitated not only key logistical links to Britain and the EU, but have facilitated passenger travel for essential purposes allowing for the movement of critical staff and the repatriation of citizens,” the group said.

Regarding Brexit and its freight operations, ICG said it is still concerned over a lack of implementation of appropriate checks on goods arriving into the North from Britain, which are required under the Northern Ireland Protocol.

ICG said, with the lingering Covid threat to business, it would be “prudent” not to declare a dividend. However, it said there has been an uplift in passenger numbers and its freight volumes have remained robust.