Irish Continental asserts confidence
Operating profits fell to €4.2 million, compared with €5.5m in the same period in 2003. The interest charge fell from €3.6m to €2.8m, resulting in profit before tax of €1.4m compared with €1.9m in the first half of 2003. The tax charge was €0.2m (2003: €0.6 million).
Goodbody analyst Joe Gill said: “A combination of subdued demand, higher fuel costs, a labour dispute and the delayed opening of its terminal extension were responsible for the performance.”
Mr Gill said that the outlook statement from the company pointed to a number of factors which give management confidence:
A recovery in passenger and freight volumes;
The resolution of the staffing problems, which will lead to lower costs and;
The completion of the DFT terminal which will improve the performance of its container division asencouraging developments going forward.
“The introduction of a fuel surcharge in July should also help offset its cost base, but this is conditional on the response of competitors,” he added.
Merrion analyst John Mattimoe said while group operating profit of €4.2m (down €1.3m) was exactly in line with their forecast, there were significant variances in the company’s business sectors.
“Profits unexpectedly rose in the ferry division reflecting good cost management.
“However, the earnings before taxes performance in the container and terminal division was worse than expected,” he said.
Mr Mattimoe said the outlook comments were cautiously optimistic, due to a firming in the car market since mid-year and good ongoing freight demand.
The board of ICG also announced yesterday that it has decided to redeem one redeemable share per ICG unit for a cash consideration of 8.625 cent per redeemable share.
“This will be paid on 5 November 2004.
"The consideration represents an increase of 15% on the premium of 7.5 cent paid last year,” the company said.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
