Irish Continental Group (ICG), the ferries company, is looking for further growth following the 37.9 per cent rise in pre-tax profits from £10.5 million to £14.5 million in the year to the end of October 31st last. The results were broadly in line with expectations and the shares were unchanged at 900p.

The underlying growth is less than might appears from the figures. The previous results were deflated by losses and write-offs at Bell Lines, which folded. If these are excluded, the underlying profit growth amounted to a more pedestrian 16.3 per cent.

Nevertheless, reflecting real growth, earnings per share increased by 26.9 per cent, from 44.2p to 56.1p, and shareholders are getting a bigger payout.

A final dividend of 4.32p per share has been declared, making a total of 6.48p, or 20 per cent higher than the previous year. There is a scrip alternative despite the adverse tax treatment in the Budget.

Group sales rose by 9.4 per cent from £127.2 million to £139.1 million. Growth was achieved in the ferries division, and the container and terminal division.

Turnover in the ferries division rose from £91.4 million to £96.5 million while profit before interest increased from £16.1 million to £19.7 million. Overall passenger numbers grew by 11 per cent to 1.56 million.

The chairman, Mr Tom Toner, said it was a record year for Irish Ferries on the Irish Sea, where passenger numbers grew by 19 per cent to 1.41 million. The growth "was particularly marked on the southern corridor route from Pembroke to Rosslare, where we had been capacity constrained for many years ".

ICG is a big cash generator and net cash flow from operations increased from £21 million to £29.4 million.

Net investment, however, amounted to £32.5 million - mainly the final payments on the Isle of Inishmore and expenditure on the Dublin Lo-Lo terminal - and this led to net debt of £82.6 million, representing a gearing of 88 per cent, up marginally from 86 per cent. Interest is covered a comfortable 3.5 times.