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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Irish Continental Group Plc | LSE:ICGC | London | Ordinary Share | IE00BLP58571 | UTS (COMP 1 ORD EUR0.065 & 10 RED) (CDI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 435.00 | 420.00 | 450.00 | 0.00 | 16:29:55 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Transportation Services, Nec | 572M | 61.6M | 0.3605 | 15.95 | 982.46M |
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TIDMICGC
Half Year Report 2018
Thursday 30 August 2018
Interim Management Report
for the half year ended 30 June 2018
Irish Continental Group plc (ICG) the leading Irish-based maritime
transport group, reports its financial performance for the half year
ended 30 June 2018.
Highlights
Six months to
Financial summary 30 June
2018 2017 Change
Revenue EUR157.2m EUR156.1m +0.7%
EBITDA (pre non-trading items) EUR26.1m EUR29.6m -11.8%
EBIT (including non-trading items) EUR30.1m EUR48.4m -37.8%
Basic earnings per share 15.3c 22.8c -32.9%
Adjusted earnings per share 8.1c 9.3c -12.9%
Net cash EUR54.6m EUR26.7m -
----------------------------------- --------- --------- ------
Six months to
Volume movements 30 June
2018 2017
'000 '000 Change
RoRo units 143.1 138.6 +3.2%
Cars 170.9 174.5 -2.1%
Containers shipped (teu) 164.6 163.1 +0.9%
Port lifts 154.8 147.2 +5.2%
------------------------- ------- ------ ------
-- EBITDA reduction of EUR3.5m principally due to an EBITDA reduction of
EUR3.6 million from external charter activities following the sale of
vessels Jonathan Swift and Kaitaki
-- Jonathan Swift sold in April 2018 for a cash consideration of EUR15.5
million (profit before tax of EUR13.7 million) following the May 2017
sale of the Kaitaki for a cash consideration of EUR45.0 million (profit
before tax of EUR29.3 million)
-- Fuel costs increase EUR2.8 million (14.3%) to EUR22.4 million
-- Delay in delivery of W.B. Yeats cruise ferry by shipbuilder affected
planned schedules in 2018
-- Technical difficulties on flagship Ulysses reduced fleet capacity in June
2018 and into July 2018
-- Additional fleet investment of EUR165.2 million announced in January 2018
-- Interim dividend increased by 5% to 4.21 cent, (2017: 4.01cent)
Commenting on the results Chairman John B McGuckian said:
"I am pleased to report a resilient performance in the first six months
of the financial year with growth in revenue of 0.7% to EUR157.2
million. This performance for the first half of the financial year is
underpinned by increased freight volumes and good volume growth in the
container and terminal division. While our first half EBITDA is down
EUR3.5 million on the same period in the prior year, it should be noted
that this is principally due to the reduced chartering income in the
Group following the sale of the Kaitaki and Jonathan Swift which were
sold for a combined total of EUR60.5 million in cash (profit of EUR42.4
million). Summer trading has been difficult for the ferries division
principally due to technical difficulties on the flagship Ulysses and
the late delivery of the W.B. Yeats. We would like to apologise again
for any disruption these schedule changes caused to our tourism and
freight customers. We look forward to the delivery of the W.B. Yeats in
late 2018 which will bring cost savings and significant additional
earnings potential for the group."
Enquiries:
-------------------------------------- --------------------------------------
Eamonn Rothwell, Chief Executive Tel: +353 1 607 5628 Email:
Officer info@icg.ie
-------------------------------------- --------------------------------------
David Ledwidge, Chief Financial Tel: +353 1 607 5628 Email:
Officer info@icg.ie
-------------------------------------- --------------------------------------
Media enquiries:
Q4 Public Relations Tel: +353 1 475 1444 Email: press@q4pr.ie
------------------- -----------------------------------------
Results
Six months to 30 Change
Financial Highlights June % Full Year
2018 2017 2017
Revenue EUR157.2m EUR156.1m +0.7% EUR335.1m
EBITDA (pre non-trading items) EUR26.1m EUR29.6m -11.8% EUR81.0m
EBIT* (including non-trading items) EUR30.1m EUR48.4m -37.8% EUR89.0m
------------------------------------ --------- --------- ------ ---------
*Non-trading items EUR13.7 million 30 June 2018 (30 June 2017: EUR29.3
million, 31 December 2017: EUR28.7 million)
The Board of Irish Continental Group plc (ICG) reports that, in the
seasonally less profitable first half of the year, the Group recorded
revenue of EUR157.2 million compared with EUR156.1 million in the same
period in 2017, an increase of 0.7%. Earnings before interest, tax,
depreciation and amortisation (EBITDA) before non-trading items were
EUR26.1 million compared with EUR29.6 million in the same period in
2017. The decline in EBITDA was principally due to a EUR3.6 million
reduction in external charter earnings following the sale of the
Jonathan Swift in April 2018 and sale of the Kaitaki in the prior year.
Group fuel costs increased by EUR2.8 million (14.3%) to EUR22.4 million
from EUR19.6 million. Non-trading items before tax comprising gains on
disposal of vessels of EUR13.7 million (30 June 2017: EUR29.3 million)
were recognised in the period. Earnings before interest and tax (EBIT)
were EUR30.1 million compared with EUR48.4 million in 2017. Profit
before tax was EUR29.7 million compared with EUR47.5 million in the
first half of 2017. The tax charge amounted to EUR0.6 million (2017:
EUR4.5 million).
There was a net finance charge of EUR0.4 million (2017: EUR0.9 million)
which includes net bank interest payable of EUR0.5 million (2017: EUR0.8
million) and a net pension interest income of EUR0.1 million (2017: cost
EUR0.1 million). Basic EPS was 15.3c compared with 22.8c in the first
half of 2017. Adjusted EPS (before non-trading items and net pension
interest cost) amounted to 8.1c (2017: 9.3c).
Operational Review
Ferries Division
Six months to Change
Financial Highlights 30 June % Full Year
2018 2017 2017
Revenue* EUR90.9m EUR93.7m -3.0% EUR212.1m
EBITDA (pre non-trading items) EUR18.8m EUR22.9m -17.9% EUR67.3m
EBIT** (including non-trading items) EUR24.1m EUR43.0m -44.0% EUR77.8m
------------------------------------- -------- --------- ------ ---------
*Includes intersegment revenue of EUR3.5 million (30 June 2017: EUR3.4
million)
**Non-trading items EUR13.7 million 30 June 2018 (30 June 2017: EUR29.3
million, 31 December 2017: EUR28.7 million)
Six months to Change
Operational Highlights 30 June % Full Year
2018 2017 2017
Volumes '000 '000 '000
Cars 170.9 174.5 -2.1% 424.0
Passengers 679.7 700.4 -2.9% 1,649.8
RoRo freight 143.1 138.6 +3.2% 287.5
----------------------- ------- ------ ------ ---------
The division comprises Irish Ferries, a leading provider of passenger
and freight ferry services between Ireland and both the UK and
Continental Europe, and the chartering of vessels to third parties.
Irish Ferries operated 2,428 sailings in the period, 102 less than in
the prior period.
Revenue in the division was EUR90.9 million (2017: EUR93.7 million)
while EBITDA was EUR18.8 million (2017: EUR22.9 million). EBIT decreased
to EUR24.1 million (2017: EUR43.0 million).
In the first half of 2018 total cars carried were 170,900, down 2.1% on
the same period in the previous year. Total passenger carryings
decreased by 2.9% to 679,700 in the period. RoRo freight volumes were up
3.2% to 143,100 units, when compared with the first half of 2017.
Estimates of market development on shipping routes serving the Republic
of Ireland in the period compared to last year were a decline of 1.0%
for tourism cars and an increase of 4.0% for RoRo freight. The Irish
Ferries performance against the market was adversely affected by a major
disruption to schedules on the Dublin/ Holyhead route in the final week
of June due to technical difficulties affecting the flagship vessel
Ulysses. These related to the Ulysses's starboard controllable pitch
propeller which required an out of schedule drydock and the leadtime to
machine specialist parts. This level of cancellation was unprecedented
given that vessel's previous 99% schedule integrity since entering
service in 2001 to 2017. While Irish Ferries undertook mitigating
actions to reduce the effect of the disruption by rescheduling other
vessels in its fleet, the disruption resulted in a significant reduction
in Irish Ferries RoRo capacity in June.
In the prior half year, the division had benefitted from charter income
on the Kaitaki which was sold in May 2017 and the Westpac Express which
was redelivered to the Group in November 2017. The charter revenues
earned in the half year to 30 June 2017 on these charters were EUR3.6
million with an EBITDA contribution of EUR3.6 million. The Westpac
Express was renamed the Dublin Swift following an extensive
refurbishment programme to bring the vessel up to Irish Ferries
passenger service standards. Since April 2018 the Dublin Swift operates
the Dublin Holyhead fast service replacing the Jonathan Swift which was
sold. The division's other vessel chartering activities were comparable
with the prior year. The container vessel Ranger remains on time charter
to a third party while the other three "Elb" vessels remain on time
charter to the Group's container shipping subsidiary Eucon.
Container and Terminal Division
Six months to 30 Change
Financial Highlights June % Full Year
2018 2017 2017
Revenue* EUR70.4m EUR66.4m +6.0% EUR131.9m
EBITDA EUR7.3m EUR6.7m +9.0% EUR13.7m
EBIT EUR6.0m EUR5.4m +11.1% EUR11.2m
--------------------- -------- -------- ------ ---------
*Includes intersegment revenue of EUR0.6 million (30 June 2017: EUR0.6
million)
Six months to 30 Change
Operational Highlights June % Full Year
2018 2017 2017
Volumes '000 '000 '000
Containers shipped (teu*) 164.6 163.1 +0.9% 321.4
Port lifts 154.8 147.2 +5.2% 296.8
-------------------------- -------- -------- ------ ---------
*teu: twenty foot equivalent units
The Container and Terminal Division includes the intermodal shipping
line Eucon as well as the division's strategically located container
terminals in Dublin and in Belfast.
Revenue in the division increased by 6.0% to EUR70.4 million (2017:
EUR66.4 million), EBITDA increased to EUR7.3 million (2017: EUR6.7
million) while EBIT increased to EUR6.0 million (2017: EUR5.4 million).
Total containers shipped were up 0.9% at 164,600 teu (2017: 163,100
teu). Containers handled at the Group's terminals in Dublin Ferryport
Terminals (DFT) and Belfast Container Terminal (BCT) were up 5.2% to
154,800 lifts (2017: 147,200 lifts). DFT's volumes were up 6.0%, while
BCT's lifts were up 4.0%.
Balance Sheet
A summary balance sheet as at 30 June 2018 is presented below:
Six months to 30
Balance Sheet June Full Year
2018 2017 2017
EURm EURm EURm
Property, plant & equipment and intangible
assets 289.2 192.0 250.0
Retirement benefit surplus 10.0 7.9 8.1
Other current assets 64.5 48.1 44.9
Cash and bank balances 180.0 68.7 90.3
----------------------------------------------- -------- -------- ---------
Total assets 543.7 316.7 393.3
----------------------------------------------- -------- -------- ---------
Non-current borrowings 124.8 1.7 50.0
Retirement benefit obligation 2.9 2.9 3.4
Other non-current liabilities 1.7 1.7 1.5
Current borrowings 0.6 40.3 0.7
Other current liabilities 173.4 78.8 113.9
----------------------------------------------- -------- -------- ---------
Total liabilities 303.4 125.4 169.5
----------------------------------------------- -------- -------- ---------
Total equity 240.3 191.3 223.8
----------------------------------------------- -------- -------- ---------
Total equity and liabilities 543.7 316.7 393.3
----------------------------------------------- -------- -------- ---------
The principal movements in the property, plant and equipment and
intangible assets in the half year to 30 June relates to progress in the
construction of the two new vessels being undertaken by company
Flensburger Schiffbau-Gesselschaft & Co.KG in Germany, refurbishment of
the Dublin Swift, scheduled replacement expenditure less depreciation
charge in the period.
The movement in other current assets in the period includes a prepayment
in relation to the second new vessel announced in January 2018 of
EUR14.9 million. The movement in other current liabilities includes
seasonal cash inflows included as deferred revenue expected to unwind in
the second half year of EUR19.9 million and an increase in the accrual
in respect of work in progress balance on the W.B. Yeats of EUR33.1
million.
The total net surplus of all defined benefit pension schemes at 30 June
2018 was EUR7.1 million in comparison to a net surplus of EUR4.7 million
at 31 December 2017. The assumptions used to value pension obligations
were updated to reflect conditions at 30 June 2018 but did not have a
material effect on movements in pension obligations compared to 31
December 2017.
Shareholders' equity increased to EUR240.3 million from EUR223.8 million
at 31 December 2017. The movements primarily comprised of the profit for
the financial period of EUR29.1 million, the actuarial gain arising on
retirement benefit schemes of EUR1.8 million and less dividends paid of
EUR15.4 million.
Cash Flow
A summary of cash flows in the half year to 30 June 2018 is presented
below:
Six months to
Cash Flow 30 June Full Year
2018 2017 2017
EURm EURm EURm
Operating profit (EBIT)* 30.1 48.4 89.0
Non trading items (13.7) (29.3) (28.7)
Depreciation 9.7 10.5 20.7
-------------------------------------------- ------- ------ ---------
EBITDA* (pre non-trading items) 26.1 29.6 81.0
-------------------------------------------- ------- ------ ---------
Working capital movements 21.4 19.4 (1.9)
Pension payments in excess of service costs (0.5) (0.5) (1.1)
Other 1.2 0.4 0.5
-------------------------------------------- ------- ------ ---------
Cash generated from operations 48.2 48.9 78.5
-------------------------------------------- ------- ------ ---------
Interest paid (0.4) (0.8) (1.1)
Tax paid (0.7) (0.5) (5.6)
Capex (31.6) (13.2) (17.0)
-------------------------------------------- ------- ------ ---------
Free cash flow* 15.5 34.4 54.8
-------------------------------------------- ------- ------ ---------
Net asset sales 14.8 44.7 44.7
Dividends (15.4) (14.6) (22.2)
Share issue 0.1 0.8 3.3
Settlement of equity plans through market
purchase of shares - - (3.0)
Net cash flows 15.0 65.3 77.6
-------------------------------------------- ------- ------ ---------
*Additional information in relation to these Alternative Performance
Measures ("APMs") is disclosed on page 19.
The net cash flows drove the improvement in the net cash position from
EUR39.6 million at 31 December 2017 to EUR54.6 million at 30 June 2018.
The net cash flows comprised EBITDA (pre non-trading items) for the
period of EUR26.1 million, the net proceeds from the sale of the
Jonathan Swift of EUR14.8 million and an overall positive seasonal
working capital movement of EUR21.4 million largely attributable to
higher deferred revenue balances ahead of the peak summer tourism
trading. These positive movements are offset by capital expenditure
outflows in the period of EUR31.6 million which include payments
relating to the two vessels under construction, the W.B. Yeats and the
second new build vessel, the Dublin Swift refurbishment and replacement
expenditure. During the period the final dividend for 2017 amounting to
EUR15.4 million was paid.
Financing
Net cash
Cash Borrowings Net Cash
EURm EURm EURm
At 1 January 2018 90.3 (50.7) 39.6
Cash flows 89.7 (74.7) 15.0
At 30 June 2018 180.0 (125.4) 54.6
------------------ ----- ---------- --------
The net cash position of the Group at 30 June 2018 was EUR54.6 million,
an increase of EUR15.0 million from the opening position at 1 January
2018. Following the refinancing programme concluded during 2017, in June
2018 the Group drew down funding of EUR75.0 million on a European
Investment Bank facility which is repayable over 12 years at a fixed
rate of 1.724%. In the same month the Group also concluded a further
EUR80.0 million committed 12 year amortising facility with the European
Investment Bank at a fixed interest rate of 1.616%. This additional
facility will be utilised to part fund the second new build vessel which
was announced earlier in January 2018.
The borrowing facilities available to the Group at 30 June 2018 were as
follows;
Borrowing Facilities
Committed Committed
facilities facilities
Facility Committed drawn undrawn
EURm EURm EURm EURm
Revolving Credit 125.0 75.0 - 75.0
Private Placement 235.8 50.0 50.0 -
European Investment Bank 155.0 155.0 75.0 80.0
Overdraft and other 15.8 15.8 0.4 15.4
531.6 295.8 125.4 170.4
------------------------- -------- --------- ----------- -----------
At 30 June 2018 the Group had total lending facilities of EUR531.6
million available of which EUR295.8 million were committed facilities.
EUR125.4 million of the committed facilities were drawn and a further
EUR80.0 million were drawn post the period end. All the amounts drawn
together with the post period drawing, EUR205.4 million in total, have
been contracted at a weighted average fixed interest rate of 1.60% over
the remaining terms of between 3 and 12 years. In addition to the
committed lines of credit, the Group had arranged uncommitted facilities
of EUR235.8 million with utilisation dates expiring between 2.5 and 5
years.
These facilities together with cash from operations will be used to
support the long-term investment opportunities including the delivery of
two new cruise ferries.
Dividend
The Board has declared an interim dividend of 4.21 cent per ICG Unit
payable on 5 October 2018 to shareholders on the register at 21
September 2018.
Fuel
Six months to 30 Change
June % Full Year
2018 2017 2017
Fuel costs EUR22.4m EUR19.6m +14.3% EUR40.3m
----------- -------- -------- ------ ---------
Group fuel costs in the first half of 2018 amounted to EUR22.4 million
(2017: EUR19.6 million). The increase in fuel costs was due to the
increase in the average global US Dollar cost of fuels consumed of 27%
compared to the first half of 2017 offset by the benefit of average
weaker Euro/ US Dollar exchange rates of 10%.
The Group has in place fuel surcharge mechanisms for freight customers
across the Group which mitigated the increase in Euro fuel costs through
increased surcharge revenues. In the reporting period the Group had not
engaged in financial derivative trading to hedge its fuel costs.
Fleet Update
In January 2018 the Group announced that it had entered into an
agreement with the German company Flensburger Schiffbau-Gesselschaft &
Co.KG ("FSG") whereby FSG has agreed to build a second cruise ferry for
ICG at a contract price of EUR165.2 million for expected delivery in
2020. It is intended that this vessel will service the Dublin Holyhead
route alongside the existing Ulysses with the chartered Epsilon being
returned to its owners.
In April the sale of the Jonathan Swift fastcraft was completed when the
vessel was delivered to buyers, Balearia Eurolineas Maritimas S.A. for a
consideration of EUR15.5 million. The profit on sale of EUR13.7 million
is reported as a non-trading item in the period.
The Dublin Swift (ex Westpac Express) replaced the Jonathan Swift on the
Dublin Holyhead fastcraft service. The Dublin Swift which had been
redelivered to the Group from charterers in November 2017 underwent an
extensive refurbishment programme to bring her up to Irish Ferries
passenger service standards prior to entering service with Irish
Ferries.
The W.B. Yeats, a cruise ferry currently under construction by FSG, was
due to enter service with Irish Ferries during July 2018 to provide
enhanced services on the overnight Dublin Cherbourg route. This vessel
was launched on schedule on 19 January 2018. Due to extraordinary
circumstances beyond the Group's control, the subsequent delivery of the
W.B. Yeats has been delayed by FSG. This necessitated Irish Ferries
cancelling until further notice the 2018 schedule of this vessel due to
the unavailability of a suitable alternative vessel. Irish Ferries very
much regrets the inconvenience these cancellations caused our customers
88% of whom were accommodated on alternative Irish Ferries sailings or
via landbridge. The Group has not yet received a reconfirmed delivery
date but the expectation is that the vessel will be delivered in late
2018. All contract payments made to FSG are covered by financial
guarantees with 80% of the contract price not becoming due until
delivery.
The delay in delivery of the W.B. Yeats has required alteration to the
Autumn/ Winter fleet allocations but Irish Ferries will be in a position
to undertake all previously provided services with the existing fleet.
However certain revenue growth opportunities will be capacity
constrained pending commencement into service of the W.B. Yeats.
The Ulysses entered service with Irish Ferries in 2001 and in the 16
years to 2017 achieved schedule integrity of 99%. In the final week of
June 2018 at the commencement of the peak car tourism season technical
issues with the vessels starboard controllable pitch propeller caused
significant disruption to schedules. This disruption continued into the
first four weeks of July. While Irish Ferries was able to mitigate
potential losses through fleet reassignment and additional fastcraft
services the disruption did have an impact in the period to 30 June 2018
and will have a further material impact on the full year results.
Related Party Transactions
There were no related party transactions in the half year that have
materially affected the financial position or performance of the Group
in the period. In addition, there were no changes in related party
transactions from the last annual report that could have a material
effect on the financial position or performance of the Group in the
first six months of 2018.
Principal Risks and Uncertainties
The Group has a risk management structure in place which is designed to
identify, manage and mitigate the threats to the business on an ongoing
basis. The principal risks and uncertainties faced by the Group as set
out in detail on pages 44 to 47 of the 2017 Annual Report are; serious
accident or incident, mechanical and other failure, hazardous accidents,
fuel contamination, competitive activity, fuel prices, economic and
political events, IT systems, failure and data breach, volatility, fraud
risk, and retirement benefit scheme risks.
These risks continue to be the most likely risks to affect the Group but
the following are noted as likely to impact the second half year
results;
-- Delay in delivery of the vessel W.B. Yeats from its contractual delivery
date resulting in changes to that vessels proposed 2018 schedule
-- Volatility in exchange rates
-- Volatility in fuel prices and continuing higher fuel costs versus the
prior year
There also remains continuing uncertainty over the manner of the
proposed exit of the United Kingdom from the European Union and the
impact this may have on the Group's operations. This uncertainty may
create both threats and opportunities though the impact cannot be
reliably measured at this point. The Group maintains close contact with
regulatory authorities and industry forums to monitor developments. The
Group's principal tangible assets vessels are internationally mobile,
having been constructed to specifications in excess of the Group's
requirements. There is no indication that ferry prices in the global
shipping market are being directly affected by Brexit uncertainty.
The Group actively manages these risks and all other risks through its
risk management structure.
Events after the Reporting Period
The Board has declared an interim dividend of 4.21 cent per ICG Unit in
respect of 2018.
There have been no other material events affecting the Group to report
since 30 June 2018.
Going Concern
After making enquiries, the Directors have reasonable expectation that
the Group has adequate resources to continue in operational existence
for a period of at least 12 months. In forming this view the Directors
have considered the future cash requirements of the Group's business in
the context of the economic environment over the next 12 months, the
principal risks and uncertainties facing the Group, the Group's budget
plan and the medium term strategy of the Group, including capital
investment plans. The future cash requirements have been compared to
bank facilities which are available to the Group. For this reason, they
continue to adopt the going concern basis in preparing this half yearly
financial report.
Current Trading and Outlook
Ferries
The performance of the Ferries Division in the second half of 2018 up to
25 August has been significantly affected by the major disruptions to
our schedules on the Dublin to Holyhead route during July. As mentioned
earlier, the Ulysses missed 5 weeks of summer service due to technical
issues with 4 of these weeks falling into the second half of the year.
The disruption not only affected Irish Ferries carryings but also the
overall performance of the markets in which we operate due to capacity
constraints in what was the peak car tourism period.
Activity in the Ferries Division in the period from 1 July 2018 to 25
August 2018 compared to the same period last year was;
-- Car carryings were 106,600 cars, a decrease of 8.5%
-- Total passengers carried were 413,200 passengers, a decrease of 11.0%
-- RoRo freight carryings were 37,800, a decrease of 11.7%
Cumulatively in the period from 1 January 2018 to 25 August 2018
compared to the same period last year activity was;
-- Car carryings were 277,600 cars, a decrease of 4.6%
-- Total passengers carried were 1,092,900 passengers, a decrease of 6.2%
-- RoRo freight carryings were 180,900 units, a decrease of 0.3%
Container and Terminal
Activity in the Container and Terminal division in the period from 1
July 2018 to 25 August 2018 compared to the same period last year was;
-- Containers shipped were 49,600 teu, an increase of 4.6%
-- Port lifts were 46,600 lifts, an increase of 5.2%
Cumulatively in the period from 1 January 2018 to 25 August 2018,
compared to the same period last year activity was;
-- Containers shipped were 214,200 teu, an increase of 1.8%
-- Port lifts were 201,400 lifts, an increase of by 5.2%
In the absence of unforeseen circumstances, the outlook for the Group
for the remainder of the year is for growth in our freight businesses in
line with market trends overall. Additional marketing initiatives are
being undertaken to drive the recovery in our tourism business. We look
forward to the delivery of the W.B. Yeats later in 2018 which will
enable the Group to bring its strategic growth initiatives back on
schedule. With our well positioned balance sheet, the Group remains in a
strong position to explore further growth opportunities.
Auditor Review
This half yearly financial report has neither been audited nor reviewed
by the auditors of the Group.
Forward-Looking Statements
This report contains certain forward-looking statements. These
statements are made by the Directors in good faith based on the
information available to them up to the time of their approval of this
report. These forward-looking statements should be treated with caution
due to the inherent uncertainties, including both economic and business
risk factors, underlying any such forward-looking information.
This report has been prepared for the Group as a whole and therefore
gives greater emphasis to those matters which are significant to Irish
Continental Group plc and its subsidiaries when viewed as a whole.
Website
This half yearly financial report and Interim Management Report are
available on the Group's website www.icg.ie.
John B. McGuckian
Chairman
29 August 2018
RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Half Yearly Financial
Report in accordance with the Transparency (Directive 2004/109/EC)
Regulations 2007 (as amended), the related Transparency Rules of the
Central Bank of Ireland and IAS 34, 'Interim Financial Reporting' as
adopted by the European Union.
Each of the directors confirm that to the best of their knowledge and
belief:
-- the Group Condensed Financial Statements for the half year ended 30 June
2018 have been prepared in accordance with the International Accounting
Standard applicable to interim financial reporting (IAS 34 Interim
Financial Reporting) adopted pursuant to the procedure provided for under
Article 6 of the Regulation (EC) No. 1606/2002 of the European Parliament
and the Council of 19 July 2002;
-- the Interim Management Report includes a fair review of the important
events that have occurred during the first six months of the financial
year, their impact on the Group Condensed Financial Statements for the
half year ended 30 June 2018, and a description of the principal risks
and uncertainties for the remaining six months; and
-- the Interim Management Report includes a fair review of related party
transactions that have occurred during the first six months of the
current financial year and that have materially affected the financial
position or the performance of the Group during that period, and any
changes in the related parties transactions described in the last Annual
Report that could have a material effect on the financial position or
performance of the Group in the first six months of the current financial
year.
On behalf of the Board
Eamonn Rothwell David Ledwidge
Director Director
29 August 2018
CONDENSED CONSOLIDATED
INCOME STATEMENT
FOR THE HALF YEARED 30 JUNE 2018
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
Notes 2018 2017 2017
Unaudited Unaudited Audited
EURm EURm EURm
Revenue 3 157.2 156.1 335.1
Depreciation and amortisation (9.7) (10.5) (20.7)
Employee benefits expense (11.3) (10.0) (22.5)
Other operating expenses (119.8) (116.5) (231.6)
--------------------------------------- ----- ---------- ---------- ----------
16.4 19.1 60.3
Non- trading items 5 13.7 29.3 28.7
--------------------------------------- ----- ---------- ---------- ----------
Operating profit 30.1 48.4 89.0
Finance income 0.1 - -
Finance costs (0.5) (0.9) (1.3)
--------------------------------------- ----- ---------- ---------- ----------
Profit before taxation 29.7 47.5 87.7
Income tax expense (0.6) (4.5) (4.4)
--------------------------------------- ----- ---------- ---------- ----------
Profit for the financial period: all
attributable to equity holders of the
parent 29.1 43.0 83.3
--------------------------------------- ----- ---------- ---------- ----------
Earnings per ordinary share
-- expressed in cent per share
Basic 6 15.3c 22.8c 44.1c
--------------------------------------- ----- ---------- ---------- ----------
Diluted 6 15.2c 22.6c 43.8c
--------------------------------------- ----- ---------- ---------- ----------
The accompanying notes form an integral part of the half-year report.
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
FOR THE HALF YEARED 30 JUNE 2018
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
Unaudited Unaudited Audited
Notes EURm EURm EURm
Profit for the financial period 29.1 43.0 83.3
-------------------------------------------- ----- --------- --------- ----------
Items that may be reclassified subsequently
to profit or loss:
Net settlement of cash flow hedge - 0.2 0.2
Exchange differences on translation
of foreign operations - 0.2 (0.6)
Items that will not be reclassified
subsequently to profit or loss:
Actuarial gain on defined benefit
pension schemes 11 1.8 17.6 17.5
Deferred tax on defined benefit
pension schemes (0.2) (0.1) (0.2)
-------------------------------------------- ----- --------- --------- ----------
Other comprehensive income for the
financial period 1.6 17.9 16.9
-------------------------------------------- ----- --------- --------- ----------
Total comprehensive income for the
financial period: all attributable
to equity holders of the parent 30.7 60.9 100.2
-------------------------------------------- ----- --------- --------- ----------
The accompanying notes form an integral part of the half-yearly report.
CONDENSED CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2018
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
Unaudited Unaudited Audited
Notes EURm EURm EURm
Assets
Non-current assets
Property, plant and equipment 7 288.8 191.4 249.5
Intangible assets 0.4 0.6 0.5
Retirement benefit surplus 11 10.0 7.9 8.1
------------------------------------- ----- --------- --------- ----------
299.2 199.9 258.1
------------------------------------- ----- --------- --------- ----------
Current assets
Inventories 2.8 2.2 2.7
Trade and other receivables 61.7 45.9 42.2
Cash and bank balances 8 180.0 68.7 90.3
------------------------------------- ----- --------- --------- ----------
244.5 116.8 135.2
------------------------------------- ----- --------- --------- ----------
Total assets 543.7 316.7 393.3
------------------------------------- ----- --------- --------- ----------
Equity and liabilities
Equity
Share capital 12.4 12.3 12.3
Share premium 18.9 16.4 18.9
Other reserves (11.9) (12.2) (13.1)
Retained earnings 220.9 174.8 205.7
------------------------------------- ----- --------- --------- ----------
Equity attributable to equity holders 240.3 191.3 223.8
------------------------------------- ----- --------- --------- ----------
Non-current liabilities
Borrowings 8 124.8 1.7 50.0
Deferred tax liabilities 1.0 0.9 0.8
Provisions 0.5 0.6 0.5
Deferred grant 0.2 0.2 0.2
Retirement benefit obligation 11 2.9 2.9 3.4
------------------------------------- ----- --------- --------- ----------
129.4 6.3 54.9
------------------------------------- ----- --------- --------- ----------
Current liabilities
Borrowings 8 0.6 40.3 0.7
Trade and other payables 172.0 72.3 112.4
Current income tax liabilities 0.8 5.8 0.9
Provisions 0.5 0.6 0.5
Deferred grant 0.1 0.1 0.1
------------------------------------- ----- --------- --------- ----------
174.0 119.1 114.6
------------------------------------- ----- --------- --------- ----------
Total liabilities 303.4 125.4 169.5
------------------------------------- ----- --------- --------- ----------
Total equity and liabilities 543.7 316.7 393.3
------------------------------------- ----- --------- --------- ----------
The accompanying notes form an integral part of the half-yearly report.
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE HALF YEARED 30 JUNE 2018 - UNAUDITED
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2018 12.3 18.9 (13.1) 205.7 223.8
Impact of adopting IFRS 15
at 1 January 2018 - - - (0.1) (0.1)
Restated balance at 1 January
2018 12.3 18.9 (13.1) 205.6 223.7
------------------------------ ------- -------- --------- --------- ------
Profit for the financial
period - - - 29.1 29.1
Other comprehensive income - - - 1.6 1.6
------------------------------ ------- -------- --------- --------- ------
Total comprehensive income
for the financial period - - - 30.7 30.7
Employee share-based
payments expense - - 1.2 - 1.2
Share issue 0.1 - - - 0.1
Dividends (note 4) - - - (15.4) (15.4)
------------------------------ ------- -------- --------- --------- ------
0.1 - 1.2 15.3 16.6
Balance at 30 June 2018 12.4 18.9 (11.9) 220.9 240.3
------------------------------ ------- -------- --------- --------- ------
Analysed as follows:
Share capital 12.4
Share premium 18.9
Other reserves (11.9)
Retained earnings 220.9
------------------------------ ------- -------- --------- --------- ------
240.3
------------------------------ ------- -------- --------- --------- ------
Other Reserves comprise the following:
Share
Capital Options Translation
Reserve Reserve Reserve Total
EURm EURm EURm EURm
Balance at 1 January 2018 7.3 1.5 (21.9) (13.1)
------------------------------ ------- ------- ----------- ------
Employee share-based payments
expense - 1.2 - 1.2
- 1.2 - 1.2
------------------------------ ------- ------- ----------- ------
Balance at 30 June 2018 7.3 2.7 (21.9) (11.9)
------------------------------ ------- ------- ----------- ------
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE HALF YEARED 30 JUNE 2017 - UNAUDITED
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2017 12.2 15.7 (11.8) 128.3 144.4
----------------------------------- ------- -------- --------- --------- ------
Profit for the financial period - - - 43.0 43.0
Other comprehensive income - - (0.1) 18.0 17.9
----------------------------------- ------- -------- --------- --------- ------
Total comprehensive income for
the financial period - - (0.1) 61.0 60.9
Employee share-based payments
expense - - 0.4 - 0.4
Share issue 0.1 0.7 - - 0.8
Dividends (note 4) - - - (14.6) (14.6)
Transferred to retained earnings
on exercise of share options - - (0.7) 0.7 -
Settlement of equity plans through
market purchase of shares - - - (0.6) (0.6)
----------------------------------- ------- -------- --------- --------- ------
0.1 0.7 (0.4) 46.5 46.9
----------------------------------- ------- -------- --------- --------- ------
Balance at 30 June 2017 12.3 16.4 (12.2) 174.8 191.3
----------------------------------- ------- -------- --------- --------- ------
Analysed as follows:
Share capital 12.3
Share premium 16.4
Other reserves (12.2)
Retained earnings 174.8
----------------------------------- ------- -------- --------- --------- ------
191.3
----------------------------------- ------- -------- --------- --------- ------
Other Reserves comprise the following:
Share
Capital Options Hedging Translation
Reserve Reserve Reserve Reserve Total
EURm EURm EURm EURm EURm
Balance at 1 January 2017 7.3 2.4 (0.2) (21.3) (11.8)
--------------------------------- ------- ------- ------- ----------- ------
Other comprehensive income - - 0.2 (0.3) (0.1)
Employee share-based payments
expense - 0.4 - - 0.4
Transferred to retained earnings
on exercise of share options - (0.7) - - (0.7)
--------------------------------- ------- ------- ------- ----------- ------
- (0.3) 0.2 (0.3) (0.4)
--------------------------------- ------- ------- ------- ----------- ------
Balance at 30 June 2017 7.3 2.1 - (21.6) (12.2)
--------------------------------- ------- ------- ------- ----------- ------
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE YEAR FINANCIALED 31 DECEMBER 2017 - AUDITED
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2017 12.2 15.7 (11.8) 128.3 144.4
----------------------------------- ------- ------- --------- --------- ------
Profit for the financial year - - - 83.3 83.3
Other comprehensive income - - (0.4) 17.3 16.9
Total comprehensive income for
the financial year - - (0.4) 100.6 100.2
Employee share-based payments
expense - - 1.1 - 1.1
Share issue 0.1 3.2 - - 3.3
Dividends (note 4) - - - (22.2) (22.2)
Settlement of equity plans through
market purchase of shares - - - (3.0) (3.0)
Transferred to retained earnings
on exercise of share options - - (2.0) 2.0 -
----------------------------------- ------- ------- --------- --------- ------
0.1 3.2 (1.3) 77.4 79.4
----------------------------------- ------- ------- --------- --------- ------
Balance at 31 December 2017 12.3 18.9 (13.1) 205.7 223.8
----------------------------------- ------- ------- --------- --------- ------
Analysed as follows:
Share capital 12.3
Share premium 18.9
Other reserves (13.1)
Retained earnings 205.7
----------------------------------- ------- ------- --------- --------- ------
223.8
----------------------------------- ------- ------- --------- --------- ------
Other Reserves comprise the following:
Share
Capital Options Hedging Translation
Reserve Reserve Reserve Reserve Total
EURm EURm EURm EURm EURm
Balance at 1 January 2017 7.3 2.4 (0.2) (21.3) (11.8)
--------------------------------- ------- -------- ------- ----------- ------
Other comprehensive income - - 0.2 (0.6) (0.4)
Employee share-based payments
expense - 1.1 - - 1.1
Transferred to retained earnings
on exercise of share options - (2.0) - - (2.0)
--------------------------------- ------- -------- ------- ----------- ------
- (0.9) 0.2 (0.6) (1.3)
--------------------------------- ------- -------- ------- ----------- ------
Balance at 31 December 2017 7.3 1.5 - (21.9) (13.1)
--------------------------------- ------- -------- ------- ----------- ------
CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE HALF YEARED 30 JUNE 2018
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
Unaudited Unaudited Audited
Notes EURm EURm EURm
Net cash inflow from operating
activities 12 47.1 47.6 71.8
-------------------------------------- ----- --------- --------- ----------
Cash flow from investing activities
Net proceeds on disposal of property,
plant and equipment 5 14.8 44.7 44.7
Purchases of property, plant and
equipment (31.6) (13.2) (17.0)
Net cash (outflow)/ inflow from
investing activities (16.8) 31.5 27.7
-------------------------------------- ----- --------- --------- ----------
Cash flow from financing activities
Dividends paid to equity holders
of the Company 4 (15.4) (14.6) (22.2)
Repayments of bank borrowings - (37.7) (77.7)
Repayments of obligations under
finance leases (0.3) (0.4) (0.7)
Proceeds on issue of ordinary share
capital 0.1 0.8 3.3
Settlement of equity plans through
market purchase of shares - (0.6) (3.0)
New bank loans raised 8 75.0 - 49.0
-------------------------------------- ----- --------- --------- ----------
Net cash inflow/ (outflow) from
financing activities 59.4 (52.5) (51.3)
Net increase in cash and cash
equivalents 89.7 26.6 48.2
Cash and cash equivalents at the
beginning of the period 90.3 42.2 42.2
Effect of foreign exchange rate
changes - (0.1) (0.1)
-------------------------------------- ----- --------- --------- ----------
Cash and cash equivalents at the
end of the period 8 180.0 68.7 90.3
-------------------------------------- ----- --------- --------- ----------
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE HALF YEARED 30 JUNE 2018
1. General information
The Group Condensed Financial Statements are considered non-statutory
financial statements for the purposes of the Companies Act 2014 and in
compliance with section 340(4) of that Act we state that:
-- the Group Condensed Financial Statements for the half year to 30 June
2018 have been prepared to meet our obligation to do so under the
Transparency (Directive 2004/109/EC) Regulations 2007 (as amended);
-- the Group Condensed Financial Statements for the half year to 30 June
2018 do not constitute the statutory financial statements of the Group;
-- The figures disclosed relating to 31 December 2017 have been derived from
the statutory financial statements for the financial year ended 31
December 2017 which were audited, received an unqualified audit report
and have been filed with the Registrar of Companies; and
-- The interim figures included in the Group Condensed Financial Statements
for the six months ended 30 June 2018 and the comparative amounts for the
six months ended 30 June 2017 have been neither audited nor reviewed.
Certain financial measures set out in our Half Yearly Report to 30 June
2018 are not defined under International Financial Reporting Standards
(IFRS). Presentation of these Alternative Performance Measures ("APMs")
provides useful supplementary information which, when viewed in
conjunction with the Group's IFRS financial information, allows for a
more meaningful understanding of the underlying financial and operating
performance of the Group. These non-IFRS measures should not be
considered as an alternative to financial measures as defined under
IFRS. Descriptions of the APMs included in this report are disclosed
below.
APM Description Benefit of APM
EBITDA EBITDA represents earnings before Eliminates the effects
non-trading items*, interest, tax, of financing and accounting
depreciation and amortisation. decisions to allow
assessment of the profitability
and performance of
the Group.
-------- ---------------------------------------- --------------------------------
EBIT EBIT represents earnings before interest Measures the Group's
and tax. earnings from ongoing
operations.
-------- ---------------------------------------- --------------------------------
Free Free cash flow comprises operating Assesses the availability
cash cash flow less capital expenditure. to the Group of funds
flow for reinvestment or
for return to shareholders.
-------- ---------------------------------------- --------------------------------
Net debt Net debt comprises total borrowings Measures the Group's
less cash and cash equivalents. ability to repay its
debts if they were
to fall due immediately.
-------- ---------------------------------------- --------------------------------
Adjusted EPS is adjusted to exclude non-trading A key indicator of
EPS items and net interest cost on defined long term financial
benefit obligations performance and value
creation of a public
listed company.
-------- ---------------------------------------- --------------------------------
*Non-trading items are material non-recurring items that derive from
events or transactions that fall outside the ordinary activities of the
Group and which individually, or, if of a similar type, in aggregate,
are separately disclosed by virtue of their size or incidence.
In addition to the above APMs the Group utilises additional APMs of
Return on Average Capital Employed and Schedule Integrity in relation to
full year performance which are not meaningful at the half year due to
seasonality.
2. Accounting policies
The Group Condensed Financial Statements for the six months ended 30
June 2018 have been prepared in accordance with the Transparency
(Directive 2004/109/EC) Regulations 2007 (as amended), the related
Transparency Rules of the Central Bank of Ireland and with IAS 34
'Interim Financial Reporting' as adopted by the European Union.
The accounting policies and methods of computation applied in preparing
these Group Condensed Financial Statements are consistent with those set
out in the Group Annual Report for the financial year ended 31 December
2017, which is available at www.icg.ie, except for the application of
IFRS 9 'Financial instruments' and IFRS15 'Revenue from contracts with
customers' as of 1 January 2018.
As required by IAS 34 the nature and effect of these changes are
disclosed below. A number of amendments to IFRSs became effective for
the financial year beginning on 1 January 2018 which did not have any
impact on the Group's accounting policies and did not require
retrospective adjustments.
IFRS 9 Financial Instruments
In the current period the Group has applied IFRS 9 Financial Instruments
(as revised in July 2014) and the related consequential amendments to
other IFRSs. IFRS 9 introduces new requirements for 1) the
classification and measurement of financial assets and financial
liabilities, 2) impairment for financial assets and 3) general hedge
accounting. Details of these new requirements as well as their impact on
the Group's consolidated financial statements are described below.
a) Classification and measurement of financial assets
The date of initial application (i.e. the date on which the Group has
assessed its existing financial assets and financial liabilities in
terms of the requirements of IFRS 9) is 1 January 2018. Accordingly, the
Group has applied the requirements of IFRS 9 to instruments that have
not been derecognised as at 1 January 2018 and has not applied the
requirements to instruments that had already been derecognised as at 1
January 2018. Comparative amounts have not been restated.
All recognised financial assets that are within the scope of IFRS 9 are
required to be subsequently measured at amortised cost or fair value on
the basis of the entity's business model for managing the financial
assets and the contractual cash flow characteristics of the financial
assets.
The directors of the Company reviewed and assessed the Group's existing
financial assets as at 1 January 2018 based on the facts and
circumstances that existed at that date and concluded that on initial
application of IFRS 9 the impact on the Group's financial assets as
regards classification and measurement was that;
i) Financial assets previously classified as held-to-maturity and
loans and receivables under IAS 39 that were measured at amortised cost
continue to be measured at amortised cost under IFRS 9 as they are held
within a business model to collect contractual cash flows and these cash
flows consist solely of payments of principal and interest on the
principal amount outstanding.
ii) The Group does not hold any financial assets which meet the
criteria for classification at fair value reported in other
comprehensive income or fair value reported in profit and loss.
b) Impairment of financial assets
In relation to the impairment of financial assets, IFRS 9 requires the
application of an expected credit loss model as opposed to an incurred
credit loss model under IAS 39. The expected credit loss model requires
the Group to account for expected credit losses and changes in those
expected credit losses at each reporting date to reflect changes in
credit risk since initial recognition of the financial assets. In other
words, it is no longer necessary for a credit event to have occurred
before credit losses are recognised.
As at 1 January 2018, the directors of the Company reviewed and assessed
the Group's existing financial assets for impairment using reasonable
and supportable information that is available without undue cost or
effort in accordance with the requirements of IFRS 9 to determine the
credit risk of the respective items at the date they were initially
recognised. In respect of trade receivables the Group applied the
simplified approach to measuring expected credit losses using a lifetime
expected loss allowance.
The application of the expected credit loss model has not resulted in
any material change to the previously reported carrying value of
financial assets.
c) Classification and measurement of financial liabilities
IFRS 9 introduced a change in the classification and measurement of
financial liabilities relating to the accounting for changes in the fair
value of a financial liability designated as at FVTPL attributable to
changes in the credit risk of the issuer.
d) General hedge accounting
In accordance with IFRS 9's transition provisions for hedge accounting,
the Group has applied the IFRS 9 hedge accounting requirements
prospectively from the date of initial application on 1 January 2018.
Hedging positions that existed during 2017 and which were closed out by
31 December 2017 were therefore not in scope of the transition
provisions. Prior year amounts have not been restated.
The Group did not have any hedging positions in place at 1 January 2018
which were qualifying hedging relationships previously under IAS 39 and
subsequently under IFRS 9. Therefore the application of IFRS 9 hedge
accounting requirements has had no impact on the results and financial
position of the Group at 1 January 2018 or in the half year ended 30
June 2018.
e) Disclosures in relation to the initial application of IFRS 9
The table below illustrates the classification and measurement of
financial assets and financial liabilities under IFRS 9 and IAS 39 at
the date of initial application, 1 January 2018.
Original
IAS 39 IFRS 9
Previous IAS 39 IFRS 9 carrying carrying
classification classification amount amount
EURM EURM
Trade and other Loans and
receivables receivables Amortised cost 42.2 42.2
Cash and cash Loans and
equivalents receivables Amortised cost 90.3 90.3
----------------- ----------------- ------------------ --------- ---------
The change in measurement category of the different financial assets has
had no impact on their respective carrying amounts on initial
application. There was no change in the classification and measurement
of financial liabilities on transition to IFRS 9.
The application of IFRS 9 has had no impact on the Condensed
Consolidated Income Statement, Condensed Consolidated Statement of
Comprehensive Income, Condensed Statement of Financial Position and the
Condensed Statement of Cash Flows in the period ended 30 June 2018.
IFRS 15 Revenue from contracts with customers
With effect from 1 January 2018, the Group has adopted IFRS 15 Revenue
from contracts with customers applying the modified retrospective
approach for the first application. Using the five-step model, the Group
carried out a review of the main revenue streams applying the
requirements of IFRS 15 and ensured that the same principles are being
applied consistently across the Group. The Group's revenue streams and
recognition policy are as follows;
a) Passenger Revenue
For passenger revenue, the transaction price is fixed at the time of
booking and each sector of travel is identified as a single performance
obligation in the contract. On a one-way booking there is one sector. On
a return booking there are two sectors. Passenger revenue for each
performance obligation, which is based on the respective standalone
selling price for each sector, is recognised over time commencing on
departure and based on elapsed scheduled time to destination. Ticket
breakage (i.e. deferred untraveled revenue) is recognised in full once
the original booked travel date has expired based on the no refund
policy in the booking terms.
b) Ro-Ro Freight Revenue
Similar to passenger revenue, the transaction price is fixed at the time
of booking and each sector of travel is identified as a single
performance obligation in the contract. On a one-way booking there is
one sector. On a return booking there are two sectors. Ro-Ro freight
revenue for each performance obligation, which is based on the
respective standalone selling price for each sector, is recognised over
time commencing on departure and based on elapsed scheduled time to
destination. Where rebates are agreed, giving rise to variable
consideration, revenue is recognised net of the best estimate of the
most probable rebate amounts.
c) On-Board Sales
Revenue in relation to on-board sales in restaurants and bars is
recognised at a point in time based on the transaction price at the time
of sale.
d) Retail Concessions
Licences are provided to certain operators of on-board retail, gaming
and cinema concessions based on contracted percentages of revenue earned
by the licence holders. Revenue is recognised based the related revenues
of the licence holders.
e) Container Shipping
The transaction price is fixed at the time of booking, with the
identifiable performance obligation to transport the booked unit from
the collection point to the delivery point, i.e. one sector. Container
shipping revenue is based on the respective standalone selling price for
each sector and, is recognised over time based on effort expended on
each activity (collection, shipping and delivery), undertaken in
fulfilment of the obligation. Recognition commences on date of
collection and ceases on delivery. Where rebates are agreed, giving rise
to variable consideration, revenue is recognised net of the best
estimate of the most probable rebate amounts.
f) Stevedoring
Contracts involving stevedoring services to lift and load containers on
and off vessels with revenue recognised over time in line with number of
containers loaded or discharged.
g) Chartering
Bareboat charter contracts involve the grant of a right to use a vessel.
Time charter contracts involve (i) the grant of a right to use a vessel
and (ii) the provision of operation and maintenance services. The right
to use a vessel is treated as an operating lease and in scope of IAS 17/
IFRS 16. The provision of operation and maintenance services is in scope
of IFRS15 and revenue is recognised on a daily basis at the applicable
daily rate under the terms of the charter agreement.
For reporting purposes revenue recognised has been disaggregated into
categories which reflect how the nature, amount, timing and uncertainty
of revenue and cash flows are affected by economic factors. As revenues
are recognised over short time periods of no more than days, a key
determinant to categorising revenues is the whether they principally
arise from a business to customer or a business to business relationship
as this impacts directly on the uncertainty of cash flows.
The principal impact for ICG as a transport service provider is that
revenue from the provision of transport services will be recognised over
the performance period of the underlying contract obligations rather
than at the single point of vessel departure. Due to seasonality of the
Company's services and the relatively short journey times the impact on
adoption was a EUR0.1 million reduction in retained earnings as
previously reported at 31 December 2017. In the half year ended 30 June
2018, the effect of the change in policy on the Condensed Consolidated
Income Statement was to decrease operating profit by net EUR0.2 million,
comprising reductions of EUR0.6 million in revenue and EUR0.4 million in
other operating expenses.
There are a number of new standards, amendments to standards and
interpretations that are not yet effective and have not been applied in
preparing the Group Condensed Financial Statements. The principal new
standards, amendments to standards and interpretations, are as follows:
Title Effective date -- periods
beginning on or after
IFRS 16 Leases 1 January 2019
---------------------------- -------------------------
IFRS 17 Insurance Contracts* 1 January 2021
---------------------------- -------------------------
*Not yet endorsed by the EU
IFRS 16 Leases
IFRS 16 Leases sets out the principle for the recognition, measurement,
presentation and disclosure of leases for both lessee and lessor.
a) As Lessee
IFRS 16 eliminates the classification of leases as either operating
leases or finance leases and introduces a single lessee accounting model
where the lessee is required to recognise assets and liabilities for all
material leases.
On adoption of the standard the effects on the Group's financial
statements from a lessee perspective will be dependent on the transition
option chosen, the contractual terms at date of adoption and the Group's
marginal borrowing costs. The principal known material non-cancellable
leases that are expected to exist on the latest adoption date relate to
long term leases of property which have an outstanding term of 104 years
at 30 June 2018 with undiscounted commitments of EUR67 million at
current rental rates. The Group also charters vessels on short leases of
less than 12 months duration. The Group is continuing to assess its
options under IFRS 16 whether to continue the existing accounting
treatment of these short leases as operating leases or whether to treat
them as right of use assets on adoption of IFRS 16.
The application of IFRS 16 to leases is not expected to have a material
effect on Group net assets, but may have a material effect individually
on gross assets and gross liabilities. The effects on Group profits is
expected to be immaterial on a net basis with higher depreciation and
interest charges largely offset by a reduction in operating expenses.
The Group's current banking covenants allow for the effect of the
changes arising due to the adoption of IFRS 16.
b) As Lessor
The adoption of IFRS 16 is not expected to significantly change the
Group's lessor accounting in respect of bareboat contract revenues and
that element of time charter contract revenues which relate to the right
to use of a vessel.
The Group will apply IFRS 16 from its effective date 1 January 2019. The
Group is continuing its assessment of the impact of adoption and will
disclose additional information on the effects in the full year 2018
financial statements.
IFRS 17 Insurance Contracts
The Group is currently evaluating the impact IFRS 17 may have on the
Group financial statements which is currently not expected to be
material.
Other than the changes to assumptions used in relation to the valuation
of retirement benefit obligations there have been no material changes in
estimates in these half yearly financial information based on the
estimates that have previously been made in the prior year financial
statements to 31 December 2017.
3. Segmental information
The Board is deemed the chief operating decision maker within the Group.
Under IFRS 8: Operating Segments, the Group has determined that the
operating segments are (i) Ferries and (ii) Container and Terminal.
These segments are the basis on which the Group reports internally and
are the only two revenue generating segments of the Group. The principal
activities of the Ferries segment are the operation of combined RoRo
passenger ferries and chartering of vessels. The principal activities of
the Container and Terminal segment are the provision of door-to-door and
feeder LoLo freight services, stevedoring and other related terminal
services. There has been no change in the basis of segmentation or in
the basis measurement of segment profit or loss in the period.
i) Revenue Analysis
By business segment:
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
EURm EURm EURm
Ferries
Passenger 46.8 47.3 117.9
Freight 39.6 38.3 79.1
Charter 4.5 8.1 15.1
----------------------- --------- --------- ----------
90.9 93.7 212.1
----------------------- --------- --------- ----------
Container and Terminal
Freight 70.4 66.4 131.9
----------------------- --------- --------- ----------
Inter segment revenue (4.1) (4.0) (8.9)
Total 157.2 156.1 335.1
----------------------- --------- --------- ----------
By geographic origin of booking:
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
EURm EURm EURm
Ireland 65.6 66.8 162.8
United Kingdom 39.2 39.4 65.5
Netherlands 30.9 28.9 57.9
Belgium 14.6 14.3 27.6
France 3.5 3.1 7.4
Other 3.4 3.6 13.9
--------------- --------- --------- ----------
157.2 156.1 335.1
--------------- --------- --------- ----------
No single external customer in the current or prior financial periods
amounted to 10 per cent of the Group's revenues.
ii) Profit for the financial year
Ferries Container & Terminal Group Total
Half year Year Half year Year Half year Year
ended ended ended ended ended ended
2018 2017 2017 2018 2017 2017 2018 2017 2017
EURm EURm EURm EURm EURm EURm EURm EURm EURm
Operating
profit 10.4 13.7 49.1 6.0 5.4 11.2 16.4 19.1 60.3
Finance income 0.1 - - - - - 0.1 - -
Finance costs (0.5) (0.9) (1.2) - - (0.1) (0.5) (0.9) (1.3)
Non-trading
items 13.7 29.3 28.7 - - - 13.7 29.3 28.7
--------------- ----- ----- ------ ----- ----- ------ ----- ----- ------
Profit before
tax 23.8 42.1 76.6 5.9 5.4 11.1 29.7 47.5 87.7
Income tax
expense (0.2) (4.1) (3.5) (0.4) (0.4) (0.9) (0.6) (4.5) (4.4)
--------------- ----- ----- ------ ----- ----- ------ ----- ----- ------
Profit for
the financial
year 23.6 38.4 73.1 5.5 4.6 10.2 29.1 43.0 83.3
--------------- ----- ----- ------ ----- ----- ------ ----- ----- ------
iii) Statement of Financial Position
Ferries Container & Terminal Group Total
Half year Year Half year Year Half year Year
ended ended ended ended ended ended
2018 2017 2017 2018 2017 2017 2018 2017 2017
EURm EURm EURm EURm EURm EURm EURm EURm EURm
Assets
Segment assets 309.3 195.0 251.3 54.4 53.0 51.7 363.7 248.0 303.0
Cash and
cash equivalents 150.8 57.1 81.2 29.2 11.6 9.1 180.0 68.7 90.3
------------------- ----- ----- ------ ----- ----- ------ ----- ----- ------
Consolidated
total assets 460.1 252.1 332.5 83.6 64.6 60.8 543.7 316.7 393.3
------------------- ----- ----- ------ ----- ----- ------ ----- ----- ------
Liabilities
Segment liabilities 150.9 58.1 95.3 27.1 25.3 23.5 178.0 83.4 118.8
Borrowings 124.6 41.0 49.8 0.8 1.0 0.9 125.4 42.0 50.7
------------------- ----- ----- ------ ----- ----- ------ ----- ----- ------
Consolidated
total liabilities 275.5 99.1 145.1 27.9 26.3 24.4 303.4 125.4 169.5
------------------- ----- ----- ------ ----- ----- ------ ----- ----- ------
iv) Seasonality
Group revenue and profit before tax is weighted towards the second half
of the year principally due to passenger demand patterns in the Ferries
Division whereas operating costs are more evenly distributed over the
year. In the Ferries Division for financial year 2017, 41% of tourism
cars were carried in the first half of the year. RoRo, container freight
carryings, and port lifts are more evenly distributed throughout the
year. Consequently 46.5% of Group revenues and 31.6% Group operating
profit respectively were earned in the first half of 2017.
4. Dividend
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
EURm EURm EURm
Interim dividend - - 7.6
Final dividend 15.4 14.6 14.6
----------------- --------- --------- ----------
15.4 14.6 22.2
----------------- --------- --------- ----------
In June 2018 a final dividend of 8.15 cent per ICG Unit was paid for the
financial year ended 31 December 2017. In June 2017 a final dividend of
7.76 cent per ICG Unit was paid for the year ended 31 December 2016. In
October 2017 an interim dividend of 4.01 cent per ICG Unit was paid for
the year ended 31 December 2017.
5. Non-trading items
Half year Half year
ended ended Year ended
30 June 30 June 31 Dec
2018 2017 2017
EURm EURm EURm
Consideration
Total consideration 15.5 45.0 45.0
------------------------------------------ --------- --------- ----------
Gain on disposal of vessel
Consideration 15.5 45.0 45.0
Disposal costs (0.7) (0.3) (0.9)
Net proceeds 14.8 44.7 44.1
NBV of vessels disposed (1.1) (15.4) (15.4)
------------------------------------------ --------- --------- ----------
Gain on disposal 13.7 29.3 28.7
Total consideration 15.5 45.0 45.0
------------------------------------------ --------- --------- ----------
Tax payable (2017: 12.5%) - 5.6 5.6
Deferred tax credit on disposal of vessel - (1.8) (1.8)
------------------------------------------ --------- --------- ----------
Tax on disposal - 3.8 3.8
------------------------------------------ --------- --------- ----------
On 26 April 2018, the Group completed the sale of the vessel Jonathan
Swift to Balearia Eurolineas Maritimas S.A. for a consideration of
EUR15.5 million. The Jonathan Swift had served the Dublin Holyhead fast
service since its delivery in 1999 and was replaced on that service by
the Dublin Swift. As the vessel was used in the Group's tonnage tax
trade no tax liability arose on disposal.
On 17 May 2017, the Group completed the sale of the Kaitaki to KiwiRail
of New Zealand. The Kaitaki had been on charter outside of the Group
prior to its disposal.
These gains on disposal of the vessels are included in the profit for
the period and are disclosed as non-trading items in the Condensed
Consolidated Income Statement.
6. Earnings per share
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
Number of shares '000 '000 '000
Weighted average number of ordinary shares for
the purpose of basic earnings per share 190,004 188,332 188,801
Effect of dilutive potential ordinary shares:
Share options 1,420 1,842 1,208
----------------------------------------------- --------- --------- ----------
Weighted average number of ordinary shares for
the purpose of diluted earnings per share 191,424 190,174 190,009
----------------------------------------------- --------- --------- ----------
The denominator for the purposes of calculating both basic and diluted
earnings per share has been adjusted to reflect shares issued during the
period and excludes treasury shares.
The earnings used in both the adjusted basic and adjusted diluted
earnings per share have been adjusted to take into account the
non-trading items together with the net interest on defined benefit
pension obligations.
Profit attributable to ordinary shareholders
The calculation of the basic and diluted earnings per share attributable
to the ordinary equity holders of the parent is based on the following
data:
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
Earnings EURm EURm EURm
Earnings for the purpose of basic and diluted
earnings per share - Profit for the financial
period attributable to equity holders of the
parent 29.1 43.0 83.3
Effect of non-trading items after tax (13.7) (25.5) (24.9)
Effect of net interest (income)/ expense on defined
benefit pension schemes (0.1) 0.1 0.2
Earnings for the purpose of adjusted earnings
per share 15.3 17.6 58.6
---------------------------------------------------- --------- --------- ----------
Cent Cent Cent
---------------------------------------------------- --------- --------- ----------
Basic earnings per share 15.3 22.8 44.1
---------------------------------------------------- --------- --------- ----------
Diluted earnings per share 15.2 22.6 43.8
---------------------------------------------------- --------- --------- ----------
Adjusted basic earnings per share 8.1 9.3 31.0
---------------------------------------------------- --------- --------- ----------
Adjusted diluted earnings per share 8.0 9.3 30.8
---------------------------------------------------- --------- --------- ----------
The calculation of adjusted basic earnings per share and adjusted
diluted earnings per share for the full year 2017 has been represented
to adjust earnings for the purpose of basic and diluted earnings per
share for effect of non-trading items after tax. The presentation of
these calculations in note 12 to the 2017 financial statements included
in the 2017 Annual Report had adjusted for the effect of non-trading
items before tax.
7. Property, plant and equipment
Plant,
Assets Equipment Land and
under construction Vessels and Vehicles Buildings Total
EURm EURm EURm EURm EURm
Cost
At 1 January 2018 103.5 286.7 56.1 26.9 473.2
Additions 36.8 11.7 0.7 0.2 49.4
Disposals - (22.6) (0.1) - (22.7)
Reclassification (3.3) - 3.3 - -
At 30 June 2018 137.0 275.8 60.0 27.1 499.9
------------------ ------------------- ------- -------------- ----------- -------
Accumulated
depreciation
At 1 January 2018 - 171.8 42.7 9.2 223.7
Charge for period - 7.9 1.5 0.2 9.6
Disposals - (22.1) (0.1) - (22.2)
At 30 June 2018 - 157.6 44.1 9.4 211.1
------------------ ------------------- ------- -------------- ----------- -------
Carrying amount
------------------ ------------------- ------- -------------- ----------- -------
At 1 January 2018 103.5 114.9 13.4 17.7 249.5
------------------ ------------------- ------- -------------- ----------- -------
At 30 June 2018 137.0 118.2 15.9 17.7 288.8
------------------ ------------------- ------- -------------- ----------- -------
At 30 June 2017 37.5 121.9 14.5 17.5 191.4
------------------ ------------------- ------- -------------- ----------- -------
Assets under construction include accruals for works completed to date
not yet invoiced in accordance with contractual terms of EUR97.7 million
(31 December 2017: EUR64.6 million).
8. Net cash and borrowing facilities
i) The components of the Groups net cash position at the reporting date
and the movements in the period are set out in the following table.
Bank Loan Origination
Cash Loans Notes Leases fees Total
EURm EURm EURm EURm EURm
At 1 January 2018
Current assets 90.3 - - - - 90.3
Creditors due within
one year - - - (0.7) - (0.7)
Creditors due after
one year - - (50.0) (1.0) 1.0 (50.0)
--------------------- ----- -------- -------- ------ ----------- -------
90.3 - (50.0) (1.7) 1.0 39.6
--------------------- ----- -------- -------- ------ ----------- -------
Cash flow 89.7 - - - - 89.7
Drawdown - (75.0) - - - (75.0)
Repayment - - - 0.3 - 0.3
--------------------- ----- -------- -------- ------ ----------- -------
89.7 (75.0) - 0.3 - 15.0
--------------------- ----- -------- -------- ------ ----------- -------
At 30 June 2018
Current assets 180.0 - - - - 180.0
Creditors due within
one year - - - (0.7) 0.1 (0.6)
Creditors due after
one year - (75.0) (50.0) (0.7) 0.9 (124.8)
--------------------- ----- -------- -------- ------ ----------- -------
180.0 (75.0) (50.0) (1.4) 1.0 54.6
--------------------- ----- -------- -------- ------ ----------- -------
At 30 June 2017
Current assets 68.7 - - - - 68.7
Creditors due within
one year - (40.0) - (0.3) - (40.3)
Creditors due after
one year - - - (1.7) - (1.7)
--------------------- ----- -------- -------- ------ ----------- -------
68.7 (40.0) - (2.0) - 26.7
--------------------- ----- -------- -------- ------ ----------- -------
ii) The maturity profile and available borrowing and cash facilities
available to the Group at 30 June 2018 are set out in the following
table.
Maturity Profile
Between Between
On-hand Less than 1 -- 2 2 -- 5 More than
Facility Undrawn / drawn 1 year years years 5 years
EURm EURm EURm EURm EURm EURm EURm
Cash - - 180.0 180.0 - - -
-------------------- -------- ------- -------- --------- ------- ------- ---------
Committed lending
facilities
Bank overdrafts 15.4 15.4 - - - - -
Bank loans 230.0 155.0 75.0 - - 22.5 52.5
Loan notes 50.0 - 50.0 - - - 50.0
Leases 1.4 - 1.4 0.7 0.4 0.3 -
-------------------- -------- ------- -------- --------- ------- ------- ---------
Committed lending
facilities 296.8 170.4 126.4 0.7 0.4 22.8 102.5
-------------------- -------- ------- -------- --------- ------- ------- ---------
Uncommitted lending
facilities
Bank Loans 50.0
Loan Notes 185.8
-------------------- -------- ------- -------- --------- ------- ------- ---------
Uncommitted lending
facilities 235.8
-------------------- -------- ------- -------- --------- ------- ------- ---------
Bank overdrafts are stated net of trade guarantee facilities utilised of
EUR0.6 million.
Obligations under the Group borrowing facilities have been cross
guaranteed by the parent company and certain subsidiaries but are
otherwise unsecured except for finance lease obligations which are
secured by the lessors' title to leased assets.
9. Tax
Corporation tax for the interim period is estimated based on the best
estimates of the weighted average annual corporation tax rate expected
to apply to each taxable entity for the full financial year.
The Company and subsidiaries that are Irish Resident for tax purposes
have elected to be taxed under the Irish tonnage tax scheme. Under the
tonnage tax scheme, taxable profit on eligible activities is calculated
on a specified notional profit per day related to the tonnage of the
ships utilised.
10. Financial instruments and risk management
The Group's activities expose it to a variety of financial risks
including market risk (such as interest rate risk, foreign currency risk,
commodity price risk), liquidity risk and credit risk. The Group's
funding, liquidity and exposure to interest and foreign exchange rate
risks are managed by the Group's treasury and accounting departments.
Treasury management practices which may include the use of derivative
financial instruments are used to manage these underlying risks.
These interim condensed financial statements do not include all
financial risk management information and disclosures required in the
annual financial statements, and should be read in conjunction with the
2017 Annual Report. There have been no changes to the risk management
procedures or policies since the 2017 year end.
i) Carrying value and fair value estimation of financial assets and
liabilities
The table below sets out the carrying value and fair values of the
Group's financial assets and liabilities at the reporting date.
Half year Half year
ended ended Year ended
30 June 2018 30 June 2017 31 December 2017
Carrying Carrying Carrying
value Fair value value Fair value value Fair value
EURm EURm EURm EURm EURm EURm
Financial
assets
Trade and
other
receivables 61.7 61.7 45.9 45.9 42.2 42.2
Cash and
cash
equivalents 180.0 180.0 68.7 68.7 90.3 90.3
------------ -------- ---------- -------- ---------- -------- ----------
Total
financial
assets 241.7 241.7 114.6 114.6 132.5 132.5
------------ -------- ---------- -------- ---------- -------- ----------
Financial
liabilities
Borrowings 125.4 125.9 42.0 42.1 50.7 50.4
Trade and
other
payables 172.0 172.0 72.3 72.3 112.4 112.4
------------ -------- ---------- -------- ---------- -------- ----------
Total
financial 297.4 297.9 114.3 114.4 163.1 162.8
liabilities
------------ -------- ---------- -------- ---------- -------- ----------
ii) Fair value hierarchy
The Group has adopted the following fair value measurement hierarchy for
financial assets and liabilities:
-- Level 1: quoted (unadjusted) prices in active markets for identical
assets and liabilities.
-- Level 2: other techniques for which all inputs that have a significant
effect on the recorded fair value are observable, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).
-- Level 3: techniques that use inputs which have a significant effect on
the recorded fair value that are not based on observable market data.
The Group did not hold any financial assets or financial liabilities at
the reporting dates required to be carried at fair value in the
Condensed Statement of Consolidated Financial Position.
iii) Fair value of financial assets and financial liabilities measured
at amortised cost
With the exception of the financial liabilities related to borrowings
set out in the table at (ii) above it is considered that the carrying
amounts of financial assets and financial liabilities recognised at
amortised cost in these half year financial statements approximate their
fair values.
The fair value of borrowings are classified within Level 2 of the fair
value hierarchy. Fair value has been estimated based on discounted cash
flow analysis using interest rates reasonably expected to be available
to the Group for similar products derived from observable market
interest rates at the reporting date and observable credit spread market
movements since inception of the borrowings.
iv) Derivative financial instruments
Derivative financial instruments are measured in the Condensed
Consolidated Statement of Financial Position at fair value. The fair
values of derivative financial instruments are based on market price
calculations using financial models based on market observable rates.
The Group utilises currency derivatives to hedge future cash flows in
the management of its short term exchange rate exposures. During the
period no material currency derivative positions were opened or closed
out and there were no material open positions at 30 June 2018 and 31
December 2017.
The Group does not currently utilise interest rate derivatives to manage
its interest rate exposure as it contracts fixed rate borrowings
directly with lenders. Previous interest rate hedge positions were
closed out in the first half of 2017 in conjunction with the repayment
of the associated borrowings.
The Group does not currently utilise commodity derivatives to hedge its
fuel costs purchasing its fuel requirements at spot.
11. Retirement benefit schemes
Retirement benefit scheme valuations have been updated at the half year.
Scheme assets have been valued as per investment managers' valuations at
30 June 2018. In consultation with the actuary to the principal group
defined benefit pension schemes, the discount rate used in relation to
the pension scheme liabilities is 1.80% for Euro liabilities (31
December 2017: 1.80%) and 2.50% for Sterling liabilities (31 December
2017: 2.35%).
At 30 June 2018 the Group's total obligation in respect of defined
benefit schemes totals EUR271.6 million (31 December 2017: EUR278.7
million). The schemes held assets of EUR278.7 million (31 December 2017:
EUR283.4 million), giving a net pension surplus of EUR7.1 million (31
December 2017: EUR4.7 million net surplus).
The principal assumptions used for the purpose of the actuarial
valuations have been set after considering independent actuarial advice
and which are reflective of market conditions that existed at 30 June
2018, were as follows:
Half year ended Year ended
30 Jun 2018 30 Jun 2017 31 Dec 2017
Sterling Euro Sterling Euro Sterling Euro
Discount rate 2.50% 1.80% 2.45% 1.90% 2.35% 1.80%
Inflation rate 3.30% 1.60% 2.45% 1.50% 3.40% 1.60%
0.70% 0.60% 0.70%
Rate of increase of -- -- --
pensions in payment 3.05% 0.80% 3.15% 0.70% 3.10% 0.80%
Rate of pensionable 0.00% 0.00% 0.00% 0.00% 0.95% 0.00%
salary increases -- -- -- -- --
0.90% 1.00% 1.00% 1.00% 1.00%
--------------------- -------- ------ -------- ------ -------- ------
The movements in the net surplus on the retirement benefit schemes were
as follows:
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
Movement in retirement benefit schemes net
surplus EURm EURm EURm
Opening surplus/ (deficit) 4.7 (13.5) (13.5)
Current service cost (0.9) (0.9) (1.8)
Employer contributions paid 1.4 1.4 2.9
Net interest income/ (cost) 0.1 (0.1) (0.2)
Actuarial gain 1.8 17.6 17.5
Other - 0.5 (0.2)
-------------------------------------------- --------- --------- ----------
Net surplus 7.1 5.0 4.7
-------------------------------------------- --------- --------- ----------
Schemes in surplus 10.0 7.9 8.1
Schemes in deficit (2.9) (2.9) (3.4)
-------------------------------------------- --------- --------- ----------
Net surplus 7.1 5.0 4.7
-------------------------------------------- --------- --------- ----------
The improvement in pension deficit since 31 December 2017 includes
actuarial gains which are recognised in the Condensed Consolidated
Statement of Comprehensive Income.
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
EURm EURm EURm
Actuarial gains recognised in the Condensed
Consolidated Statement of Comprehensive
Income
Return on scheme assets (less than) / in
excess of interest income (2.7) 5.3 11.9
Remeasurement adjustments on scheme
liabilities
- Changes in demographic assumptions - - 0.6
- Changes in financial assumptions 0.8 10.7 3.7
- Experience adjustments 3.7 1.6 1.3
Actuarial gains recognised in the Condensed
Consolidated Statement of Comprehensive
Income 1.8 17.6 17.5
--------------------------------------------- --------- --------- ----------
No provision has been made against scheme surpluses as the Group believe
having reviewed the rules of the relevant schemes, the surplus will
accrue to the Group in the future.
12. Net cash inflow from operating activities
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
EURm EURm EURm
Operating activities
Profit for the financial period/ year 29.1 43.0 83.3
Adjustments for:
Finance costs (net) 0.4 0.9 1.3
Income tax expense 0.6 4.5 4.4
Retirement benefit schemes -- current service
cost 0.9 0.9 1.8
Retirement benefit schemes -- payments (1.4) (1.4) (2.9)
Depreciation of property, plant and equipment 9.6 10.4 20.5
Amortisation of intangible assets 0.1 0.2 0.3
Amortisation of deferred grant - (0.1) (0.1)
Share-based payment expense 1.2 0.4 1.1
Gain on disposal of property, plant and
equipment (13.7) (29.3) (29.1)
Increase in provisions - - (0.2)
------------------------------------------------ --------- --------- ----------
Operating cash flow before movements in working
capital 26.8 29.5 80.4
(Increase)/ decrease in inventories (0.1) 0.1 (0.4)
(Increase) in receivables (4.6) (6.3) (2.6)
Increase in payables 26.1 25.6 1.1
------------------------------------------------ --------- --------- ----------
Cash generated from operations 48.2 48.9 78.5
Income taxes paid (0.7) (0.5) (5.6)
Interest paid (0.4) (0.8) (1.1)
------------------------------------------------ --------- --------- ----------
Net cash inflow from operating activities 47.1 47.6 71.8
------------------------------------------------ --------- --------- ----------
At 30 June 2018 and 30 June 2017 the overall working capital movements
amounted to EUR21.4 million and EUR19.4 million respectively, which
relate to seasonal working capital inflows that are expected to unwind
in the second half of the year. Working capital movements exclude
accruals of EUR97.7 million (31 December 2017: EUR64.6 million, 30 June
2017: EURnil) relating to vessel work in progress balances not yet paid
and prepayments in line with contractual terms for works not yet
undertaken of EUR14.9 million (31 December 2017 and 30 June 2017:
EURnil). Movements in these accrual and prepayments are included as
Purchases of Property Plant and Equipment in the Condensed Consolidated
Statement of Cash Flows.
13. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation.
During the six months ended 30 June 2018 there were no material changes
to, or material transactions between Irish Continental Group plc and its
key management personnel or members of their close family, other than in
respect of remuneration and dividends. There were no other material
related party transactions in the period.
14. Contingent assets/ liabilities
There have been no material changes in contingent assets or liabilities
as reported in the Group's financial statement for the year ended 31
December 2017.
15. Impairment
Under IFRS, goodwill and other indefinite-lived intangible assets are
required to be tested at least annually for impairment. As the Group
does not have these types of assets no impairment review is required.
In relation to assets other than those listed above, the Group assessed
those assets to determine if there were any indications of impairment.
No internal or external indications of impairment were identified and
consequently no impairment review was performed.
16. Composition of the entity
There have been no changes in the composition of the entity during the
period ended 30 June 2018.
17. Commitments
Half year Half year
ended ended Year ended
30 Jun 30 Jun 31 Dec
2018 2017 2017
EURm EURm EURm
Commitments for the acquisition of property,
plant and equipment -- approved and contracted
for 272.7 116.9 216.4
------------------------------------------------ --------- --------- ----------
18. Events after the reporting period
The Board has declared an interim dividend of 4.21 cent per ICG Unit in
respect of 2018.
There have been no other material events affecting the Group to report
since 30 June 2018.
19. Board approval
This interim report was approved by the Board of Directors of Irish
Continental Group plc on 29 August 2018.
(END) Dow Jones Newswires
August 30, 2018 02:00 ET (06:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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