Irish Continental Trading Statement

 
TIDMIRSH 
 
 
 
   Volumes (Year to date, 21 November 2020) 
 
 
 
 
Financial summary 
                             2020    2019    Change 
                           Number   Number         % 
Cars                       122,700  369,700   -66.8% 
RoRo Freight               293,500  281,200    +4.4% 
Container Freight (teu*)   287,200  315,100    -8.9% 
Terminal Lifts             258,600  293,000   -11.7% 
                           -------  -------  ------- 
 
 
   *teu: twenty foot equivalent units 
 
   Irish Continental Group (ICG) issues this trading update which covers 
carryings for the year to date to 21 November 2020 and financial 
information for the first ten months of 2020, i.e. 1 January to 31 
October with comparisons against the corresponding period in 2019. All 
figures are unaudited. 
 
   Consolidated Group revenue in the period was EUR229 million, a decrease 
of EUR79 million or 26% compared with last year. 
 
   The Ferries Division has faced challenging trading conditions in its 
Irish Ferries passenger business following the continuation of travel 
restrictions across the EU first introduced in mid-March as a 
consequence of the COVID-19 pandemic.  In the year to 21 November car 
volumes are down 67% with total passenger volumes down 68% compared with 
2019. This has had a material impact on passenger revenues, which were 
71% lower in the year to 31 October 2020 compared to 2019. 
 
   Retention of the Common Travel Area (CTA) between Britain and Ireland is 
of major benefit to the tourism and hospitality sectors in Ireland. The 
current Irish Government position, of asking people from Britain who 
visit Ireland to restrict their movements for two weeks, is not 
consistent with that of the British Government who do not require people 
travelling to Britain from Ireland to restrict their movements. In 
addition, there continues to be an anomaly whereby people from Britain 
visiting Ireland by travelling through Belfast and Larne are not asked 
to restrict their movements. We continue to press the Irish Government 
on this issue. 
 
   Irish Ferries ro-ro freight carryings have been more robust with 
retention of full freight schedules providing critical logistical links 
to the island of Ireland. In the year to 21 November ro-ro freight 
carryings were up 4% compared with 2019. 
 
   In the Container and Terminal Division, the impact of Covid-19 has been 
more limited. Compared to the prior year, to 21 November container 
shipments are down 9% with container lifts at our terminals in Dublin 
and Belfast down 12%. 
 
   The UK exited the EU on 31 January 2020 and entered a transition period 
with a current end date of December 2020 during which negotiations of 
new rules on trade, travel and business between the UK and the EU 
continue to take place. There remains uncertainty over the nature of the 
relationship post 2020. The  Ferries Division is highly dependent on 
trade flows between Ireland and the UK. Therefore any slowdown in either 
economy as a result of the exit of the UK from the EU will likely have 
an effect on Irish Ferries' carryings.  We continue to work with all 
relevant regulatory authorities to ensure that our systems are prepared 
for the end of the transition period.  Our customers also need to be 
prepared for the administrative changes that will come about when 
trading with the UK from 1 January 2021, regardless of a deal between 
the EU and the UK. 
 
 
 
   With the severe decline of passenger business during the Covid-19 
outbreak some ferry routes out of Ireland which are critically important 
in providing essential services became cash negative. Recognising the 
need to help certain routes remain open the Irish Government adopted a 
Public Services Obligation (PSO) model covering the shortfall between 
variable revenue and certain variable costs. This was not an approach 
that we supported as we believe this model was liable to create 
distortions in the marketplace and could be open to legal challenge. For 
these reasons we decided not to participate in this PSO model, but we 
committed, without any specific Government support, to continue 
operating our lossmaking routes which provide a vital lifeline service 
to our Island. The PSO scheme ceased on 12 July 2020.  We will closely 
monitor the Government's future response to assistance for Shipping and 
Aviation to promote against any potential funding mechanism that may 
lead to any market distortion. 
 
   The Group, where appropriate, has availed of Governments' staff 
retention support schemes across Europe. 
 
   The Group remains in a strong financial position with cash and undrawn 
committed credit facilities at 31 October of EUR232.4 million and net 
debt of EUR96.7 million (pre-IFRS 16: EUR63.2 million). 
 
   Dublin 
 
   25 November 2020 
 
   Enquiries 
 
   Eamonn Rothwell, CEO,                                                        [phone] 
 
 
   David Ledwidge, CFO,                                                           [phone] 
 
 
 
 
 

(END) Dow Jones Newswires

November 25, 2020 02:00 ET (07:00 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.