A stronger performance in the second half of 2000 by Irish Continental Group (ICG) has prompted upgrades of profit forecasts, with brokers recommending the stock as a buy for investors.
NCB Stockbrokers said the results showed the group has come through a tough year but that growth should be resumed this year. It said the key challenge for 2001 is to restore profitability at the container and terminal division, which incurred losses of €500,000 (£393,500) last year, mainly due to higher fuel and haulage costs, and start-up losses on new routes.
The economic environment remains favourable while ICG's fleet renewal programme should allow it to exploit new opportunities.
NCB raised its forecasts for 2001 and 2002 by 8 per cent and 10 per cent respectively, with pre-tax profits to increase to €22.2 million this year and €26.4 million in 2002. Davy is also positive about ICG and has upgraded its forecasts. It is predicting that pre-tax profits will increase to €21.8 million this year and €25.6 million in 2002.
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