Irish Continental Group returns to profit despite quiet summer

Ferry operator, Irish Continental Group, has posted pre-tax profits of €3.3 million in the six months to the end of June 2002.

In the same period last year it reported a loss of €1.7 million and despite reporting weakness in its tourist and freight markets remains confident about its prospects for this year.

Announcing the results yesterday, the company suggested that additional charter income and tighter cost control will help to underpin profitability.

Trading in the first half of the year tends to be weaker than in the second half and the figures were broadly in line with market expectations with some analysts suggesting that the positive outturn was helped by the switch in the company's year end from October to December.

Managing director, Mr Eamonn Rothwell, said the summer had been a bit slower which was disappointing after a strong start to the year but believes the company will deliver a strong performance for the full-year.

Irish Continental achieved earnings per share of 10.4 cents and has declared a dividend of €6.84 cents, an increase of 20 per cent.

Turnover rose by 5 per cent to €145 million which the company said reflected a recovery in passenger numbers following the impact of foot and mouth disease in the previous year.

The group operates ferries between Ireland and the UK and Europe which trades as Irish Ferries.

During the first half of 2002 it reported the number of passenger cars using its ferries increased by 15 per cent to 174,000. Passenger numbers were up 10 per cent to 791,000 while freight volumes were just 2 per cent better at 90,000 units.

It also operates the Tara Travel agency which continued to struggle which has resulted in a restructuring and the closure of two of its seven branches in London. The company also charters ferries, which are providing substantial revenues.

The Pride of Bilbao and Egnatial II are chartered to P&O European Ferries and Hellenic Mediterranean Lines.

Earlier this year it announced an extension of the Pride of Bilboa charter for a further period of five years to October 2007.

Its Isle of Innisfree will also be leased for five years from July 2002.

Trading at its container and terminal division was slightly weaker at €54.2 million compared to €56.3 million in the same period last year.

During the first half of this year, Irish Continental Group generated cash flow of €31 million, up from €24.7 million in the same period last year.

This helped to reduce its net debt to €157 million down from €187 million at the end of last year.