Buoyant Fastnet Line embarks on funds move
The company is embarking on raising further funds to improve the service through a Business Expansion Scheme (BES).
Despite some early hiccups, business is good and already the company is preparing to purchase a new vessel to replace the MV Julia, which could be sailing the route as early as 2015.
Fastnet Line chairman Conor Buckley said projections showed that 85,000 passengers were likely to use the service before the end of the year, which was up on predictions.
“We initially thought we’d be carrying 80,000 passengers but it will be higher than that. Increased visitors are noticeable on both sides of the Irish Sea,” Mr Buckley said.
He said it was hoped in the next few years that the service will see upwards of 100,000 passengers using the ferry route.
The south-west region has suffered considerably from the loss of a ferry service since 2006 when Swansea-Cork ferries ceased its service. However, things are looking up and Mr Buckley said he was confident for the future.
“We expect the business to be in profit next year, albeit a small profit. We got through this year on a shoestring. The key now is to build reserves,” Mr Buckley said.
The company is already looking for a replacement vessel for the Finnish-built MV Julia.
“We won’t be able to afford a new vessel, but we will have to upgrade with a more modern one which will probably cost in the region of €15m to €20m. We would hope to have a replacement vessel in service sometime between 2015 and 2017,” Mr Buckley said.
The Business Expansion Scheme (BES) which the company launched is expected to attract high-rate taxpayers seeking to shelter their tax liability.
The company aims to raise a maximum of €1,372,000 through BES to ensure working capital remains in place to increase sales development.
It will be seeking a minimum investment per person of €5,000 with a maximum investment of €150,000.
Mr Buckley said the investment must be received on or before December 31, 2010, to enable BES investors to claim the tax relief in the 2010 tax year.
The scheme will enable individuals to deduct the cost of their qualifying investment from their total income for tax purposes, thereby obtaining relief at their highest marginal rates of tax.
For the tax year 2010 the thresholds are €125,000 for adjusted income and €80,000 for specified reliefs. The total amount of specified reliefs an individual may claim in any one year will be limited to the greater of €80,000 or 20% of their adjusted income.
