Irish Ferries owner in buyout proposal

The company that owns Irish Ferries has received an approach that could lead to a management buyout of the firm.

In a statement to the stock exchange this morning, Irish Continental Group (ICG) confirmed the approach from the management team and said the proposal placed a value of €18.50 per share unit. One ICG share unit includes one ordinary share and three redeemable preference shares.

The management team making the offer includes chief executive Eamonn Rothwell and directors Gearoid O'Dea and Tony Kelly.

The independent directors not involved in the offer said they are prepared to recommend the offer to shareholders at that price.

However, the offer remains subject to certain conditions, such as financing.

Meanwhile, Irish Continental Group released its preliminary results for the year ended December 31st, 2006.

Turnover for the year rose by 4.6 per cent to €312.1 million, compared with €298.5 million in 2005. Trading profit before non recurring items also climbed, increasing to €32.2 million from €18.1 million. The company attributed the rise in operating profit to the absence of industrial action during the period, compared with 2005, when its proposal to lay off workers sparked industrial action.

This led to restructuring costs of €29.1 million in 2005, which the company managed to turn into a net non recurring credit of €0.7 million in 2006. The credit was the result of offsetting restructuring charges of €3.7 million against a refund of seafarers' PRSI of €4.4 million.

"Our performance in freight was positive, while in the car market we performed in line with the market, which declined 3 per cent. We have reduced our cost base to enable us to compete more effectively in what is a demanding international marketplace," said chairman John B McGuckian.