Irish Continental Group's pretax profits jump 22%

Pretax profits at Irish Continental Group (ICG) jumped by more than 22 per cent in 2007, to €40.7 million, according to preliminary results released yesterday which were ahead of market expectations.

The group benefited from interruptions to the operations of the Stena group in the first half of 2007.

Earnings before interest tax depreciation and amortisation in the first half of 2007 were up €17 million, while in the seasonally more significant second half the increase was €3 million.

Chairman John McGuckian said the latter half of 2007 "was more challenging with higher oil prices and slowing economic growth".

On current trading, the group said car volumes to date at Irish Ferries are down 11 per cent on the preceding year. The group added that roll on/roll off freight is down 1 per cent.

It added that these year-on-year declines were partly explained by its competitor's lost sailings in early 2007 "and as such are broadly in line with our expectations".

In the container market, load-on, load-off volumes were up 8 per cent.

The group said it had decided, on legal advice, not to make a €6.47 payment to the Moonduster consortium, which had claimed reimbursement of expenses arising from its bid for the company last year.

There was no comment from the Moonduster consortium. Legal correspondence on the issue between ICG and Moonduster is ongoing.

A charge to ICG of €10.1 million related to the takeover issue in 2007.

It comprised just under €5 million that was re-imbursed to Aella, a vehicle of ICG chief executive Eamonn Rothwell, which made a failed bid for the company last year, and a remaining amount of €5 million plus, which went on third-party costs incurred by the group in dealing with the takeover issue.

The container and terminal division saw operating profit grow to €9.2 million from €3.6 million, though Mr Rothwell said the 2006 figure had not been satisfactory.

"We're on a good footing there for 2008," he said.