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Irish Ferries owner increases profits
Shipping, transport and leisure group ICG has reported a before-tax, first-half profit of EUR2.7m, up EUR1m from EUR1.7m in the same period last year.
Earnings per share were 10.6c compared with 6.4c in 2005.
In the group's ferries division, which includes Irish Ferries, revenue was EUR72.3m, with profit at EUR4.3m.
ICG blamed competition from airlines for creating tough market conditions in recent years. Total passenger numbers in the first half of the year were down 11%, while the total number of cars carried was down 10%.
"We have reduced frequency of our fast ferry from three to two round trips a day. This represents a reduction of frequency for passengers (but not freight) of 10%. Our total cars carried were down 10% at 145,000, which is in line with our reduction in capacity."
After a period in which Irish Ferries was at the centre of controversy over its staffing arrangements, ICG said today: "Our initiative to reduce our crewing costs to internationally competitive levels generated savings in line with expectations in the half year.
"Our vessels are now principally crewed by third party crewing agencies at internationally competitive cost levels. The severance costs involved on this amounted to a net EUR29.1m, which was taken as an exceptional charge against the 2005 results.
"The figure is net of a rebate of the statutory redundancy element of the severance package of EUR4.1m. Application has been made to the appropriate authorities for the refund of this rebate."
The company also said fuel costs remained high and were EUR2m more in Irish Ferries than in the same period last year. The company said it was recovering a substantial portion of the fuel increase through surcharges.
ICG chairman John B. McGuckian said: "We have achieved a solid result in challenging circumstances. Our labour cost savings and capacity management have compensated for a demanding trading environment."
Earnings per share were 10.6c compared with 6.4c in 2005.
In the group's ferries division, which includes Irish Ferries, revenue was EUR72.3m, with profit at EUR4.3m.
ICG blamed competition from airlines for creating tough market conditions in recent years. Total passenger numbers in the first half of the year were down 11%, while the total number of cars carried was down 10%.
"We have reduced frequency of our fast ferry from three to two round trips a day. This represents a reduction of frequency for passengers (but not freight) of 10%. Our total cars carried were down 10% at 145,000, which is in line with our reduction in capacity."
After a period in which Irish Ferries was at the centre of controversy over its staffing arrangements, ICG said today: "Our initiative to reduce our crewing costs to internationally competitive levels generated savings in line with expectations in the half year.
"Our vessels are now principally crewed by third party crewing agencies at internationally competitive cost levels. The severance costs involved on this amounted to a net EUR29.1m, which was taken as an exceptional charge against the 2005 results.
"The figure is net of a rebate of the statutory redundancy element of the severance package of EUR4.1m. Application has been made to the appropriate authorities for the refund of this rebate."
The company also said fuel costs remained high and were EUR2m more in Irish Ferries than in the same period last year. The company said it was recovering a substantial portion of the fuel increase through surcharges.
ICG chairman John B. McGuckian said: "We have achieved a solid result in challenging circumstances. Our labour cost savings and capacity management have compensated for a demanding trading environment."
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