Irish Continental Group (ICG) has recorded a pre-tax profit of €2.6 million (£2.1 million) in the six months ended April 30th, 1999, compared with a loss of €1.3 million, in the comparable six months in 1998. Traditionally the company incurs a loss in the first half but a pick-up in freight levels led to the profit this year.
The company is looking for further growth in the second half. Managing director, Mr Eamonn Rothwell, said he would not be unhappy with brokers' projections. This would imply a 14 per cent rise in earnings per share to around 99 cents for the full year.
ICG has implemented a 10 per cent increase in ferry fares from this month to compensate for the abolition of duty free sales. This, said Mr Rothwell, might affect underlying growth.
Sales in the first six months grew by 23.4 per cent to €94.5 million. Basic earnings per share amounted to 9.7 cents compared with a loss of 5.0 cents. Shareholders are to benefit from the better results; the interim dividend is being raised from 3.29 cents to 3.96 cents.
Both divisions, ferries, and container and terminal, enjoyed sales and profit growth. Ferries showed a rise in sales from €43.5 million to €50.2 million and a increase in operating profits from €1.8 million to €4.6 million.
Passenger numbers on the Irish Sea grew by 9 per cent to 518,000 while passenger numbers on the French route increased by 55 per cent to 35,000. RoRo freight volumes were 20 per cent higher at 80,000 units.
The container and terminal division increased sales by 5 per cent from €33.6 million to €35.3 million while acquisitions contributed another €9.6 million. Operating profit rose from €2.4 million to €2.8 million.
The volume of containers rose by 4 per cent to 109,000.
During the first six months, the group invested €27.2 million, most of which, was invested in the new fast ferry "Jonathan Swift".
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