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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% | 443.00 | 422.00 | 456.00 | 460 | 08:00:29 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Transportation Services, Nec | 572M | 61.6M | 0.3605 | 15.53 | 956.83M |
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TIDMICGC
8 March 2018
Preliminary Statement of Results for the year ended 31 December 2017
Irish Continental Group (ICG) the leading Irish-based maritime transport
group, reports a solid financial performance for the year ended 31
December 2017.
Highlights
-- Revenue up 3.0% to EUR335.1 million (2016: EUR325.4
million)
-- EBITDA down 3.0% to EUR81.0 million (2016: EUR83.5
million)
-- Basic EPS up 40.4% to 44.1c (2016: 31.4c)
-- RoRo freight volumes up 0.5% to 287,500 units (2016:
286,100 units)
-- Cars carried up 2.4% in the year to 424,000 units
(2016: 414,100 units)
-- Container volumes shipped in the year up 5.9% to
321,400 teu* (2016: 303,600 teu)
-- Port lifts handled in the year up 3.0% to 296,800
lifts (2016: 288,100 lifts)
-- Sale of the vessel MV Kaitaki yields profit after tax
of EUR24.9 million
-- Net cash of EUR39.6 million (31 December 2016: net
debt EUR37.9 million)
-- IAS 19 net retirement benefit surplus of EUR4.7
million at 31 December 2017 (31 December 2016:
EUR13.5 million deficit)
-- Final dividend 8.15 cent, up 5.0% (2016: 7.76 cent)
*teu = twenty foot equivalent units
Commenting on the results Chairman John B McGuckian said,
"2017 was another successful year for the Group. Despite the headwinds
of increased fuel costs and weaker Sterling, the company delivered
EBITDA of EUR81.0 million with revenues increasing by 3.0% to EUR335.1
million. This was achieved due to the continued volume growth in all of
its operations. The company also completed the sale of the MV Kaitaki
during the year yielding a profit after tax of EUR24.9 million, which
assisted in a 40.4% increase in basic EPS to 44.1c and in the Group's
net cash position at year end of EUR39.6 million. In the next phase of
the Group's development we are looking forward to the arrival of the new
cruise ferry MV W.B. Yeats in summer 2018".
7 March 2018
For further information please contact:
Eamonn Rothwell, Chief Executive Officer Tel: +353 1 607 5628
David Ledwidge, Chief Financial Officer Tel: +353 1 607 5628
Email: info@icg.ie
Website: www.icg.ie
RESULTS
Financial Highlights 2017 2016 Change %
Revenue EUR335.1m EUR325.4m +3.0%
EBITDA (pre non-trading items*) EUR81.0m EUR83.5m -3.0%
EBIT (including non-trading items*) EUR89.0m EUR62.6m +42.2%
*Non-trading items EUR28.7 million (31 December 2016: EURnil)
Irish Continental Group (ICG) produced another resilient performance in
the face of continued increasing fuel costs as a result of a rise in
global US Dollar oil prices. Group fuel costs increased by 25.2% to
EUR40.3 million (2016: EUR32.2 million). Notwithstanding this, 2017 has
been a successful year for the Group, with a positive operational and
financial performance in both divisions building upon the continued
Irish economic recovery. Revenue for the year grew by 3.0% to EUR335.1
million (2016: EUR325.4 million). EBITDA for the year decreased by 3.0%
to EUR81.0 million (2016: EUR83.5 million) primarily as a result of the
aforementioned EUR8.1 million year on year increase in fuel costs.
During this period we completed the sale of the MV Kaitaki generating a
profit on sale before tax of EUR28.7 million. The subsequent reduced
charter earnings on the MV Kaitaki for the remainder of the year were
largely offset by the increased earnings on the HSC Westpac Express.
Overall Group operating profit was EUR89.0 million (2016: EUR62.6
million).
On 17 May 2017, the Group announced that it had entered into a
Memorandum of Agreement ("MOA") for the sale of the passenger ferry MV
Kaitaki to the New Zealand ferry operator KiwiRail. The vessel was
delivered to KiwiRail on 25 May 2017. The agreed consideration of
EUR45.0 million, payable in cash, was received on delivery and is being
utilised for general corporate purposes.
On 2 January 2018, ICG 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 cruise ferry for ICG at a
contract price of EUR165.2 million which is scheduled for delivery
during 2020. The cruise ferry is being built specifically for Irish
Ferries Dublin - Holyhead services. The investment provides Irish
Ferries with a significant increase in both its freight and tourism
carrying capacity on this fast-growing route. ICG intend to utilise
credit facilities to finance this investment. When completed, the vessel
will be the largest cruise ferry in the world in terms of vehicle
capacity.
On 19 January 2018, the cruise ferry MV W.B. Yeats was formally named
and the completed hull launched into the water. The cruise ferry, is
scheduled to commence sailing between Ireland and France on the
Dublin-Cherbourg route in summer 2018.
ICG announced on 30 January 2018 that it has entered into a Memorandum
of Agreement ("MOA") for the sale of the HSC Jonathan Swift to Balearia
Eurolineas Maritimas S.A for an agreed consideration of EUR15.5 million.
This vessel will be delivered to the buyer in April 2018 and will be
replaced in our fleet by the 2001 built HSC Westpac Express, which was
recently redelivered following a period of twenty months on external
charter. This vessel will provide the Group with increased capacity on
its popular fast craft service. She is currently undergoing a
refurbishment programme to bring her up to Irish Ferries passenger
service standards and will be renamed HSC Dublin Swift prior to entering
service.
The container vessel MV Ranger remains on time charter to a third party
and is currently trading in North West Europe while the MV Elbtrader, MV
Elbcarrier and MV Elbfeeder remain on time charter to the Group's
container shipping subsidiary Eucon.
The charter-in of the Ropax vessel MV Epsilon will expire in November
2018. The company has two further one year options on the vessel.
OPERATIONAL REVIEW
Irish Continental Group operates through two divisions; the Ferries
Division operating under the Irish Ferries brand offering passenger and
RoRo freight services. The division is also engaged in ship chartering
activities with vessels chartered within the Group and to third parties.
The Container and Terminal Division includes the intermodal shipping
line Eucon as well as the division's strategically located container
terminal in Dublin and its terminal operations in Belfast.
FERRIES DIVISION
Financial Highlights 2017 2016 Change %
Revenue* EUR212.1m EUR209.8m +1.1%
EBITDA (pre non-trading items**) EUR67.3m EUR70.7m -4.8%
EBIT (including non-trading items**) EUR77.8m EUR52.3m +48.8%
*Includes intersegment revenue of EUR7.7 million (2016: EUR7.1 million)
**Non-trading items EUR28.7 million (31 December 2016: EURnil)
Operational Highlights 2017 2016 Change %
Volumes '000 '000
Cars 424.0 414.1 +2.4%
Passengers 1,649.8 1,622.9 +1.7%
RoRo freight 287.5 286.1 +0.5%
Despite the increased fuel costs, the division had a strong year with
increased volumes and the consolidation of the strong RoRo growth over
the last two years. Revenue was 1.1% higher at EUR212.1 million (2016:
EUR209.8 million). EBITDA in the division decreased by 4.8% to EUR67.3
million (2016: EUR70.7 million) primarily due to higher fuel costs which
increased by EUR5.2 million. EBIT rose by 48.8% to EUR77.8 million
(2016: EUR52.3 million) principally due to the sale of the MV Kaitaki
for a profit before tax of EUR28.7 million.
Car and Passenger markets
It is estimated that the overall car market, to and from the Republic of
Ireland, grew by approximately 1.7% in 2017 to 807,400 cars, while the
all-island market, i.e. including routes into Northern Ireland, is
estimated to have grown by 1.8%. Irish Ferries' car carryings performed
strongly during the year, at 424,000 cars, (2016: 414,100 cars), up 2.4%
on the previous year. In the first half of the year Irish Ferries grew
its car volumes by 2.3% while in the second half of the year, which
includes the busy summer holiday season, volumes grew by 2.4%.
The total sea passenger market (i.e. comprising car, coach and foot
passengers) to and from the Republic of Ireland increased by 1.0% on
2016 to a total of 3.13 million passengers, while the all-island market
increased by 1.9%. Irish Ferries' passenger numbers carried increased by
1.7% at 1.650 million (2016: 1.623 million). In the first half of the
year, Irish Ferries passenger volumes grew by 1.7% and in the second
half of the year, which is seasonally more significant, the increase in
passenger numbers was 1.6%.
RoRo Freight
The RoRo freight market between the Republic of Ireland, and the U.K.
and France, continued to grow in 2017 on the back of the Irish economic
recovery, with the total number of trucks and trailers up 5.1%, to
approximately 998,200 units. On an all-island basis, the market
increased by approximately 3.8% to 1.82 million units.
Irish Ferries' carryings, at 287,500 freight units (2016: 286,100
freight units), increased by 0.5% in the year with volumes down 0.4% in
the first half and up 1.3% in the second half. The strong growth in the
freight market in 2017 reflects the continued strong performance of the
Irish economy. The Irish Ferries performance represents a consolidation
of previously reported average growth of 7.4% in 2015 and 2016.
Chartering
The MV Kaitaki remained on charter until the vessel was sold to the
existing charterer on 25 May 2017. In the last financial year ended 31
December 2016 the charter of the vessel generated operating profits of
EUR2.1 million. Of our four owned LoLo container vessels, the three Elb
vessels are currently on year-long charters to the Group's container
shipping subsidiary Eucon on routes between Ireland and the continent
whilst the Ranger is on a short term charter to a third party.
The HSC Westpac Express, which was on charter since acquisition in June
2016, was redelivered to the Group at the end of November 2017. The
Vessel will be renamed HSC Dublin Swift on completion of a refurbishment
programme and will replace the HSC Jonathan Swift on the Dublin -
Holyhead fast craft service in April 2018. Overall external charter
revenues were EUR7.4 million in 2017 (2016: EUR8.7 million).
CONTAINER AND TERMINAL DIVISION
Financial Highlights 2017 2016 Change %
Revenue* EUR131.9m EUR123.9m +6.5%
EBITDA EUR13.7m EUR12.8m +7.0%
EBIT EUR11.2m EUR10.3m +8.7%
*Includes intersegment revenue of EUR1.2 million (2016: EUR1.2 million)
Operational Highlights 2017 2016 Change %
Volumes '000 '000
Container freight (teu*) 321.4 303.6 +5.9%
Port lifts 296.8 288.1 +3.0%
*teu: twenty foot equivalent units
Revenue in the division increased to EUR131.9 million (2016: EUR123.9
million). The revenue is derived from container handling and related
ancillary revenues at our terminals and in Eucon from a mix of domestic
door-to-door, quay-to-quay and feeder services with 69% (2016: 70%) of
shipping revenue generated from imports into Ireland. With a flexible
chartered fleet and slot charter arrangements Eucon was able to adjust
capacity and thereby continue to meet the requirements of customers in a
cost effective and efficient manner. EBITDA in the division increased to
EUR13.7 million (2016: EUR12.8 million) while EBIT rose 8.7% to EUR11.2
million (2016: EUR10.3 million).
In Eucon overall container volumes shipped increased by 5.9% compared
with the previous year to 321,400 teu (2016: 303,600 teu). The
resulting revenue increase was partially offset by a EUR2.9 million
increase in fuel costs.
Containers handled by the Group's terminal operations in Dublin
Ferryport Terminals (DFT) and Belfast Container Terminal (BCT) rose by
3.0% at 296,800 lifts (2016: 288,100 lifts). DFT's volumes grew by 4.7%,
while BCT's volumes increased by 0.7%.
GROUP FINANCE REVIEW
A summary cash flow is presented below:
Cash Flow 2017 2016
EURm EURm
Operating profit (EBIT*) 89.0 62.6
Non-trading item (28.7) -
Net depreciation and amortisation 20.7 20.9
EBITDA* 81.0 83.5
Working capital movements (1.9) 4.7
Pension payments in excess of service costs (1.1) (1.8)
Share based payments expense 1.1 0.2
Other (0.6) (0.1)
Cash generated from operations 78.5 86.5
Interest paid (1.1) (2.3)
Tax paid (5.6) (2.1)
Capex (17.0) (57.0)
Free cash flow* 54.8 25.1
Proceeds on disposal of property, plant and equipment 44.7 1.3
Dividends paid to equity holders of the Company (22.2) (21.0)
Proceeds on issue of ordinary share capital 3.3 2.7
Interest received - 0.1
Settlement of equity plans through market purchase
of shares (3.0) (0.4)
Net cash flows 77.6 7.8
Opening net debt (37.9) (44.3)
Translation/other (0.1) (1.4)
Closing net cash / (debt)* 39.6 (37.9)
*Additional information in relation to these Alternative Performance
Measures ("APMs") is disclosed on page 21.
EBITDA for the year was EUR81.0 million (2016: EUR83.5 million). There
was a net outflow of working capital of EUR1.9 million, due to an
increase in receivables of EUR2.6 million from increased revenue, an
increase in inventories of EUR0.4 million, partially offset by a
decrease in payables of EUR1.1 million. The Group made payments, in
excess of service costs to the Group's pension funds of EUR1.1 million.
Other net cash inflows amounted to EUR0.5 million resulting in cash
generated from operations amounting to EUR78.5 million (2016: EUR86.5
million).
Interest paid was EUR1.1 million (2016: EUR2.3 million) while taxation
paid was EUR5.6 million (2016: EUR2.1 million) including EUR5.1 million
relating to the sale of MV Kaitaki. Interest received amounted to EURnil
(2016: EUR0.1 million).
Capital expenditure was EUR17.0 million (2016: EUR57.0 million) which
included annual refits of the vessels, new terminal handling equipment
and payments related to the new cruise ferry MV W.B. Yeats.
Net cash at year end was EUR39.6 million in comparison to a net debt
position of EUR37.9 million at 31 December 2016.
A summary balance sheet is presented below:
Balance Sheet 2017 2016
EURm EURm
Property, plant & equipment and intangible assets 250.0 205.1
Retirement benefit surplus 8.1 2.4
Other current assets 44.9 41.9
Cash and bank balances 90.3 42.2
Total assets 393.3 291.6
Non-current borrowings 50.0 1.7
Retirement benefit obligation 3.4 15.9
Other non-current liabilities 1.5 3.6
Current borrowings 0.7 78.4
Other current liabilities 113.9 47.6
Total liabilities 169.5 147.2
Total equity 223.8 144.4
Total equity and liabilities 393.3 291.6
The total net surplus of all defined benefit pension schemes at 31
December 2017 was EUR4.7 million in comparison to a EUR13.5 million
deficit at 31 December 2016. The movement reflects an actuarial gain of
EUR17.5 million, arising from investment performance and the positive
effect of an increase in the discount rate used to value scheme
liabilities.
Shareholders' equity increased to EUR223.8 million from EUR144.4 million
at 31 December 2016. The main reasons for the movement were due to a
profit for the financial period of EUR83.3 million, an actuarial gain
arising on retirement benefit schemes of EUR17.5 million offset by
dividends paid of EUR22.2 million.
FINANCING
Following the maturity of its existing debt facilities during the period
ICG has concluded a refinancing programme comprising:
-- A 5 year multicurrency revolving credit facility provided by Allied Irish
Banks plc (Co-ordinating Bank) and Bank of Ireland (Agent Bank)
extendable by up to 2 years, comprising a committed EUR75 million drawing
limit together with an additional uncommitted limit of EUR50 million;
-- A 12 year amortising term loan provided by the European Investment Bank
("EIB") comprising a committed EUR75 million drawing limit, available on
delivery of the new vessel W.B. Yeats;
-- Multicurrency private loan note shelf agreements with Metropolitan Life
Insurance Company and Pricoa Capital Group comprising total uncommitted
drawing limits of USD275 million and tenors of up to 15 years; and
-- An overdraft and guarantee facility of EUR16 million provided by Allied
Irish Banks Plc.
On 30 November 2017 the Group issued its first series of loan notes
under the loan note shelf agreements amounting to EUR50.0 million on a 7
year bullet repayment term with a fixed coupon of 1.40% per annum. Since
the year end the interest rate on the EIB facility has been fixed at
1.724%. Following the loan note issuance the aggregate committed finance
facilities amount to EUR216.0 million, with uncommitted facilities of
EUR229.0 million approximately.
These facilities together with cash from operations will be used to
support the long-term investment opportunities including the EUR309.0
million contracts for the delivery of two new cruise ferries the MV W.B.
Yeats in June 2018 and a second vessel in 2020.
FUEL
2017 2016 Change %
Fuel costs EUR40.3m EUR32.2m +25.2%
Group fuel costs in 2017 amounted to EUR40.3 million (2016: EUR32.2
million). The increase in fuel cost was due to the rise in global US
Dollar oil prices, partially offset by a weaker US Dollar versus Euro.
The Group has in place a transparent fuel surcharge mechanism 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.
DIVID
During the year the Group paid the final dividend for 2016 of 7.76 cent
per ICG Unit. The Group also paid an interim dividend for 2017 of 4.01
cent per ICG Unit, and the Board is proposing a final dividend of 8.15
cent per ICG Unit, payable in June 2018, making a total dividend for
2017 of 12.16 cent per ICG Unit, an increase of 5.0% on the prior year.
Subject to shareholder approval at the Annual General Meeting, the final
dividend will be paid on 8 June 2018 to shareholders on the register at
close of business on 18 May 2018. Irish dividend withholding tax will be
deducted where appropriate.
CURRENT TRADING & OUTLOOK
Since our last update to the market, in the Interim Management Statement
of November 2017, trading conditions have remained favourable. For the
full year 2017 the Ferries Division recorded strong volume growth of
1.7% for passengers, 2.4% for cars and 0.5% for RoRo freight. In the
Container and Terminal Division overall container volumes shipped were
up 5.9%, while port lifts were up 3.0%.
In the period from 1 January 2018 to 3 March 2018, car and passenger
volumes have benefited from additional high speed ferry sailings. Irish
Ferries carried 35,600 cars up 9.1% while the number of passengers
carried increased to 135,500 passengers, up 4.5%, compared with the same
period last year.
Due to prolonged bad weather in the period up to 3 March 2018
conventional sailings decreased 9% year on year. Irish Ferries carried
43,800 RoRo units in that period which is down 3.3% on the prior year.
In the period from 1 January 2018 to 3 March 2018, the Container and
Terminal division container carryings were 57,200, an increase of 4.6%
on the corresponding period last year. Port lifts were 51,700, an
increase of 5.7% compared to the same period last year.
World fuel prices have strengthened over the last number of months
offset by the positive benefit from a weaker US Dollar. Overall Euro
fuel costs remain at manageable levels with our fuel surcharge
mechanisms remaining in place.
Despite the uncertainty around the implications of the UK government
triggering Article 50 of the EU Treaty in March 2017, the economic
outlook in our sphere of operations continues to improve. We look
forward to another year of volume growth in our markets of operation.
The Group is also set to benefit this year from the introduction of the
new cruise ferry MV W.B. Yeats in the summer of 2018 which will bring
additional earnings potential for the Group.
John B. McGuckian
Chairman
Consolidated Income Statement for the year ended 31 December 2017
Notes 2017 2016
EURm EURm
Revenue 335.1 325.4
Depreciation and amortisation (20.7) (20.9)
Employee benefits expense (22.5) (22.0)
Other operating expenses (231.6) (219.9)
60.3 62.6
Non-trading items 8 28.7 -
Operating profit 89.0 62.6
Finance income - 0.1
Finance costs (1.3) (2.3)
Profit before tax 87.7 60.4
Income tax expense 3 (4.4) (1.6)
Profit for the year: all attributable
to equity holders of the parent 83.3 58.8
Earnings per share - expressed in EUR cent per share
Basic 4 44.1c 31.4c
Diluted 4 43.8c 31.1c
Consolidated Statement of Comprehensive Income for the year ended 31
December 2017
2017 2016
EURm EURm
Profit for the year 83.3 58.8
Items that may be reclassified subsequently to profit
or loss:
Cash flow hedges:
- Fair value movements arising during the year - (0.1)
-Transfer to Consolidated Income Statement - net settlement
of cash flow hedge 0.2 0.4
Currency translation adjustment (0.6) (2.8)
Items that will not be reclassified subsequently to
profit or loss:
Actuarial gain / (loss) on defined benefit obligations 17.5 (9.6)
Deferred tax on defined benefit obligations (0.2) 0.7
Other comprehensive income / (expense) for the year 16.9 (11.4)
Total comprehensive income for the year:
all attributable to equity holders of the parent 100.2 47.4
Consolidated Statement of Financial Position as at 31 December 2017
Notes 2017 2016
EURm EURm
Assets
Non-current assets
Property, plant and equipment 249.5 204.3
Intangible assets 0.5 0.8
Retirement benefit surplus 7 8.1 2.4
258.1 207.5
Current assets
Inventories 2.7 2.3
Trade and other receivables 42.2 39.6
Cash and cash equivalents 5 90.3 42.2
135.2 84.1
Total assets 393.3 291.6
Equity and liabilities
Equity
Share capital 12.3 12.2
Share premium 18.9 15.7
Other reserves (13.1) (11.8)
Retained earnings 205.7 128.3
Equity attributable to equity
holders of the parent 223.8 144.4
Non-current liabilities
Borrowings 5 50.0 1.7
Deferred tax liabilities 0.8 2.7
Provisions 0.5 0.6
Deferred grant 0.2 0.3
Retirement benefit obligation 7 3.4 15.9
54.9 21.2
Current liabilities
Borrowings 5 0.7 78.4
Trade and other payables 112.4 46.7
Derivative financial instruments - 0.2
Current income tax liabilities 0.9 -
Provisions 0.5 0.6
Deferred grant 0.1 0.1
114.6 126.0
Total liabilities 169.5 147.2
Total equity and liabilities 393.3 291.6
Consolidated Statement of Changes in Equity for the year ended 31
December 2017
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 year - - - 83.3 83.3
Other comprehensive (expense) / income - - (0.4) 17.3 16.9
Total comprehensive (expense) / income for the year - - (0.4) 100.6 100.2
Employee share-based payment expense - - 1.1 - 1.1
Share issue 0.1 3.2 - - 3.3
Dividends - - - (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)
Total comprehensive income / (expense) - - 0.2 (0.6) (0.4)
Employee share-based payment 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)
Consolidated Statement of Changes in Equity for the year ended 31
December 2016
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2016 12.1 13.1 (9.0) 99.3 115.5
Profit for the year - - - 58.8 58.8
Other comprehensive expense - - (1.9) (9.5) (11.4)
Total comprehensive (expense) / income for the year - - (1.9) 49.3 47.4
Employee share-based payment expense - - 0.2 - 0.2
Share issue 0.1 2.6 - - 2.7
Dividends - - - (21.0) (21.0)
Settlement of equity plans through market purchase
of shares (0.4) (0.4)
Transferred to retained earnings on exercise of share
options - - (1.1) 1.1 -
0.1 2.6 (2.8) 29.0 28.9
Balance at 31 December 2016 12.2 15.7 (11.8) 128.3 144.4
Analysed as follows:
Share capital 12.2
Share premium 15.7
Other reserves (11.8)
Retained earnings 128.3
144.4
Other Reserves comprise the following:
Share
Capital Options Hedging Translation
Reserve Reserve Reserve Reserve Total
EURm EURm EURm EURm EURm
Balance at 1 January 2016 7.3 3.3 (0.5) (19.1) (9.0)
Total comprehensive income / (expense) - - 0.3 (2.2) (1.9)
Employee share-based payment expense - 0.2 - - 0.2
Transferred to retained earnings on exercise of share
options - (1.1) - - (1.1)
- (0.9) 0.3 (2.2) (2.8)
Balance at 31 December 2016 7.3 2.4 (0.2) (21.3) (11.8)
Consolidated Statement of Cash Flows for the year ended 31 December 2017
2017 2016
Notes EURm EURm
Net cash inflow from operating activities 6 71.8 82.1
Cash flow from investing activities
Interest received - 0.1
Proceeds on disposal of property, plant and equipment 44.7 1.3
Purchases of property, plant and equipment (17.0) (56.7)
Purchases of intangible assets - (0.3)
Net cash inflow / (outflow) from investing activities 27.7 (55.6)
Cash flow from financing activities
Dividends paid to equity holders of the Company (22.2) (21.0)
Repayments of borrowings (77.7) (13.0)
Repayments of obligations under finance leases (0.7) (1.1)
Proceeds on issue of ordinary share capital 3.3 2.7
New bank loans raised (net of arrangement costs) 49.0 25.0
Settlement of equity plans through market purchase
of shares (3.0) (0.4)
Net cash outflow from financing activities (51.3) (7.8)
Net increase in cash and cash equivalents 48.2 18.7
Cash and cash equivalents at the beginning of year 42.2 25.0
Effect of foreign exchange rate changes (0.1) (1.5)
Cash and cash equivalents at the end of year 5 90.3 42.2
Notes to the Preliminary Statement for the year ended 31 December 2017
1. Accounting policies
The Group did not adopt any new International Financial Reporting
Standards (IFRS) or Interpretations in the year that had a material
impact on the Group's Financial Statements.
2. Segmental information
The Board is deemed the chief operating decision maker within the Group.
For management purposes, the Group is currently organised into two
operating segments: Ferries and Container & Terminal.
Net Assets (equity
Revenue Profit Before Tax attributable to equity holders)
Analysis of
results 2017 2016 2017 2016 2017 2016
EURm EURm EURm EURm EURm EURm
Ferries 212.1 209.8 49.1 52.3 156.0 158.0
Container and
Terminal 131.9 123.9 11.2 10.3 28.2 24.3
Intersegment
Revenue (8.9) (8.3) - - - -
335.1 325.4 60.3 62.6 184.2 182.3
Non-trading
items - - 28.7 - - -
Net interest
/ cash /
(debt) - - (1.3) (2.2) 39.6 (37.9)
Total 335.1 325.4 87.7 60.4 223.8 144.4
Analysis by
origin of
booking 2017 2016
EURm EURm
Ireland 162.8 163.2
United
Kingdom 65.5 66.7
Netherlands 57.9 53.4
Belgium 27.6 26.5
France 7.4 7.6
Other 13.9 8.0
Total 335.1 325.4
3. Income tax expense
2017 2016
EURm EURm
Current tax 6.5 2.0
Deferred tax (2.1) (0.4)
Income tax expense for the year 4.4 1.6
The Company and its Irish tax resident subsidiaries have elected to be
taxed under the Irish tonnage tax method. Under the tonnage tax method,
taxable profit on eligible activities is calculated on a specified
notional profit per day related to the tonnage of the ships utilised.
In accordance with the IFRIC guidance on IAS 12 Income Taxes, the
tonnage tax charge is not considered an income tax expense and has been
included in other operating expenses in the Consolidated Income
Statement.
Domestic income tax is calculated at 12.5% of the estimated assessable
profit for the year for all activities which do not fall to be taxed
under the tonnage tax system. Taxation for other jurisdictions is
calculated at the rates prevailing in the relevant jurisdictions. The
income tax expense for the year includes a current tax charge of EUR5.6
million and a deferred tax credit of EUR1.8 million relating to
non-trading items (note 8).
The total expense for the year is reconciled to the accounting profit as
follows:
2017 2016
EURm EURm
Profit before tax 87.7 60.4
Tax at the domestic income tax rate of 12.5% (2016:
12.5%) 11.0 7.6
Effect of tonnage relief (5.6) (5.8)
Net utilisation of tax losses (0.3) (0.1)
Difference in effective tax rates 0.3 0.2
Other items (1.0) (0.3)
Income tax expense recognised in the
Consolidated Income Statement 4.4 1.6
4. Earnings per share
2017 2016
Number of shares '000 '000
Weighted average number of ordinary shares for the
purposes of
basic earnings per share 188,801 187,536
Effect of dilutive potential ordinary shares: Share
options 1,208 1,692
Weighted average number of ordinary shares for the
purposes of
diluted earnings per share 190,009 189,228
The denominator for the purposes of calculating both basic and diluted
earnings per share has been adjusted to reflect shares issued during the
year 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 net
interest on defined benefit pension obligations.
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:
2017 2016
Earnings EURm EURm
Earnings for the purposes of basic and diluted earnings
per share -
Profit for the year attributable to equity holders
of the parent 83.3 58.8
Effect of non-trading item (28.7) -
Net interest cost on defined benefit obligations 0.2 -
Earnings for the purposes of adjusted basic and diluted
earnings per share 54.8 58.8
2017 2016
Cent Cent
Basic earnings per share 44.1 31.4
Diluted earnings per share 43.8 31.1
Adjusted basic earnings per share 29.0 31.4
Adjusted diluted earnings per share 28.8 31.1
Diluted earnings per ordinary share
Diluted earnings per Ordinary Share is calculated by adjusting the
weighted average number of Ordinary Shares outstanding to assume the
exercise of all vested share option awards at 31 December. Share option
awards which have not yet satisfied the required performance conditions
for vesting are excluded from the calculation. The dilutive effect of
vested share options is calculated as the difference in the average
market value during the period and the option price expressed as a
percentage of the average market value. Of the 1,714,000 (2016:
2,866,500) vested options at 31 December 2017, the dilutive effect is
1,208,000 ordinary shares (2016: 1,692,000 ordinary shares).
5. Net debt
Cash Loans Leases Total
EURm EURm EURm EURm
At 1 January 2017
Current assets 42.2 - - 42.2
Creditors due within one year - (77.7) (0.7) (78.4)
Creditors due after one year - - (1.7) (1.7)
42.2 (77.7) (2.4) (37.9)
Cash flow 48.1 - - 48.1
Drawdown (net of arrangement costs) - (49.0) - (49.0)
Repayment - 77.7 0.7 78.4
Foreign exchange rate changes - - - -
48.1 28.7 0.7 77.5
At 31 December 2017
Current assets 90.3 - - 90.3
Creditors due within one year - - (0.7) (0.7)
Creditors due after one year - (49.0) (1.0) (50.0)
90.3 (49.0) (1.7) 39.6
The loan drawdown and repayments have been made under the Group's loan
facilities.
6. Net cash from operating activities
2017 2016
EURm EURm
Operating activities
Profit for the year 83.3 58.8
Adjustments for:
Finance costs (net) 1.3 2.2
Income tax expense 4.4 1.6
Retirement benefit obligations - current service cost 1.8 1.9
Retirement benefit obligations - payments (2.9) (3.7)
Depreciation of property, plant and equipment 20.5 20.6
Amortisation of intangible assets 0.3 0.4
Amortisation of deferred income (0.1) (0.1)
Share-based payment expense 1.1 0.2
Gain on disposal of property, plant and equipment (29.1) (0.3)
(Decrease) / increase in provisions (0.2) 0.2
Operating cash flows before movements in working capital 80.4 81.8
Increase in inventories (0.4) (0.4)
(Increase) / decrease in receivables (2.6) 1.4
Increase in payables 1.1 3.7
Cash generated from operations 78.5 86.5
Income taxes paid (5.6) (2.1)
Interest paid (1.1) (2.3)
Net cash inflow from operating activities 71.8 82.1
7. Retirement benefit schemes
The principal assumptions used for the purpose of the actuarial
valuations were as follows:
STERLING EURO
LIABILITIES LIABILITIES
2017 2016 2017 2016
Discount rate 2.35% 2.50% 1.80% 1.70%
Inflation rate 3.40% 3.45% 1.60% 1.60%
Rate of increase of
pensions in payment 3.10% 3.15% 0.70% - 0.80% 0.70% - 0.80%
Rate of general salary
increases 0.95% 1.00% 0.00% - 1.00% 0.00% - 1.00%
The average life expectancy used in all schemes at age 60 is as follows:
2017 2016
Male Female Male Female
Current retirees 26.3 years 29.0 years 26.1 years 28.9 years
Future retirees 28.6 years 31.2 years 28.5 years 30.8 years
The amount recognised in the balance sheet in respect of the Group's
defined benefit obligations,
is as follows:
SCHEMES WITH SCHEMES WITH
LIABILITIES IN LIABILITIES IN
STERLING EURO
2017 2016 2017 2016
EURm EURm EURm EURm
Equities 10.5 9.4 117.6 124.7
Bonds 13.8 14.9 95.2 93.7
Diversified funds - - 24.9 11.6
Property 0.3 0.3 18.7 18.0
Other 1.3 1.0 1.1 1.2
Market value of scheme assets 25.9 25.6 257.5 249.2
Present value of scheme liabilities (23.8) (23.9) (254.9) (264.4)
Surplus / (deficit) in schemes 2.1 1.7 2.6 (15.2)
7. Retirement benefit schemes - continued
The movement during the year is reconciled as follows:
2017 2016
EURm EURm
Opening net deficit (13.5) (5.1)
Current service cost (1.8) (1.9)
Employer contributions paid 2.9 3.7
Net interest cost (0.2) -
Actuarial gain / (loss) 17.5 (9.6)
Other (0.2) (0.6)
Closing net surplus / (deficit) 4.7 (13.5)
Schemes in surplus 8.1 2.4
Schemes in deficit (3.4) (15.9)
Net surplus / (deficit) 4.7 (13.5)
8. Non trading items
On 17 May 2017, the Group completed the sale of the vessel MV Kaitaki to
KiwiRail of New Zealand.
The MV Kaitaki which was commissioned by and delivered to ICG in 1995
became surplus to ICG's operational requirements following delivery of
our cruise ferry Ulysses in 2001. MV Kaitaki has been on charter
outside the Group since 2002, most recently to the buyers KiwiRail who
operate the vessel in New Zealand.
2017
EURm
Consideration
Total consideration 45.0
Gain on disposal of vessel
Consideration 45.0
Disposal costs (0.3)
Performance pay associated with disposal (0.6)
Net proceeds 44.1
NBV of vessel disposed of (15.4)
Gain on disposal 28.7
Total consideration 45.0
Tax payable (2017: 12.5%) 5.6
Deferred tax credit on disposal of vessel (1.8)
Tax on disposal 3.8
The gain on disposal of the vessel is included in the profit for the
period and is disclosed on a separate line in the Condensed Consolidated
Income Statement.
9. Related party transactions
Transactions between the company and its subsidiaries, which are related
parties, have been eliminated on consolidation.
During the year ended 31 December 2017 the material transactions between
Irish Continental Group plc and its key management personnel were the
remuneration of employees and Directors, the participation in Group
dividends on the same terms available to shareholders generally, and the
provision of professional services at arm's length basis.
10. General information
The financial information in this preliminary announcement does not
constitute full statutory financial statements, a copy of which is
required to be annexed to the annual return to the Companies
Registration Office. A copy of the financial statements in respect of
the financial year ended 31 December 2017 will be annexed to the annual
return for 2018. The auditors have made a report, without any
qualification on their audit, of the consolidated financial statements
in respect of the financial year ended 31 December 2017 and the
Directors approved the consolidated financial statements in respect of
the financial year ended 31 December 2017 on 7 March 2018. A copy of the
consolidated financial statements in respect of the year ended 31
December 2016 has been annexed to the annual return for 2017 filed at
the Companies Registration Office.
The consolidated financial statements have been prepared in accordance
with IFRS as adopted by the European Union and therefore the Group's
financial statements comply with Article 4 of the IAS Regulations. The
consolidated financial statements have also been prepared in accordance
with the Companies Acts 2014, and the Listing Rules of the Irish Stock
Exchange and the UK Listing Authority.
The consolidated financial statements have been prepared on the
historical cost basis except for the revaluation of certain financial
instruments.
Certain financial measures set out in our Preliminary Statement of
Results for the year ended 31 December 2017 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
Company'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 interest, tax, depreciation Eliminates the effects of financing and accounting
and amortisation. decisions to allow assessment of the profitability
and performance of the Group.
EBIT EBIT represents earnings before interest and tax. Measures the Group's earnings from ongoing
operations.
Free Free cash flow comprises operating cash flow less Assesses the availability to the Group of funds for
cash capital expenditure. reinvestment or for return to shareholders.
flow
Net Net debt comprises total borrowings less cash and Measures the Group's ability to repay its debts if
debt cash equivalents. they were to fall due immediately.
11. Subsequent events
The Board is proposing a final dividend of 8.15 cent per ICG unit in
respect of the results for the year ended 31 December 2017.
On 2 January 2018, ICG 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 cruise ferry for ICG at a
contract price of EUR165.2 million and is scheduled for delivery during
2020.
ICG announced on 30 January 2018 that it has entered into a Memorandum
of Agreement ("MOA") for the sale of the High Speed Craft "Jonathan
Swift" to Balearia Eurolineas Maritimas S.A for an agreed consideration
of EUR15.5 million. This vessel will be delivered to the buyer in April
2018.
There have been no other material events affecting the Group since 31
December 2017.
12. Board Approval
This preliminary announcement was approved by the Board of Directors of
Irish Continental Group plc. on 7 March 2018.
13. Annual Report and Annual General Meeting
The Group's Annual Report and notice of Annual General Meeting, which
will be held on Thursday 10 May 2018, will be notified to shareholders
in April 2018.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Irish Continental Group plc via Globenewswire
http://www.icg.ie/
(END) Dow Jones Newswires
March 08, 2018 02:00 ET (07:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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