ICG reports 25% decline in revenues

LISTED FERRY company Irish Continental Group (ICG) yesterday reported a 25 per cent decline in its revenues for the first four months of this year.

Revenues fell to €76.2 million due to the effects of the recession. This was partly offset by a 24 per cent reduction in its expenses to €68.2 million. This was due to lower payroll, fuel and vessel charter costs, and reduced port charges.

Eamonn Rothwell, ICG’s chief executive, said the company had introduced a pay freeze while its headcount has declined by about 25 so far this year.

"Our cost management is probably a little ahead of where the market expected us to be," he told The Irish Times.

Mr Rothwell said bonus payments would be made by ICG this year. “The bonuses will be lower but we reserve the right to pay certain bonuses for exceptional performance,” he said.

ICG reported earnings before interest, tax, depreciation and amortisation (Ebitda) of €8 million compared with €12.2 million in 2008.

ICG said cars numbers declined by 5 per cent to 98,000 in the weeks between January 1st this year and May 9th. But the company said car volumes rose by 28 per cent over the busy Easter period.

Total passenger volumes, including lower-yielding foot and coach customers, fell by 10 per cent to 391,000.

Mr Rothwell said the trend towards late booking meant it was not possible for him to forecast how ICG will perform in the crucial summer months. “I would take heart from Easter,” he added.

In terms of its roll-on, roll-off freight business, Irish Ferries carried 71,000 units, down 23 per cent year on year. This was due to increased capacity from competitors on both the Dublin to Holyhead and Dublin to Liverpool routes at a time when freight demand declined due to the sharp economic downturn.

ICG’s container volumes shipped fell by 29 per cent to 133,000.

ICG said its net debt is about €38 million, down from €48.7 million at the end of December 2008.

“Liquidity remains strong with gross cash balances of €28 million,” the company added.

ICG confirmed yesterday that it would pay €1 a share to investors through the redemption of certain stock. This will cost the company about €25 million and will be paid on May 29th.

ICG’s share price closed yesterday in Dublin at €10.85, down 3.6 per cent on the day.