Irish Continental Group plc : Interim Managemen...

INTERIM MANAGEMENT STATEMENT

 Key Points

                      Q3     Q3   9 months to 30 September

                    2011   2010    2011               2010

                      €m     €m      €m                 €m

 Turnover           84.9   81.2   211.5              203.6

 EBITDA             23.9   25.0    40.0               45.0

 Operating Profit   18.5   19.0    25.0               27.8




Interim Management Statement

Irish Continental Group plc (ICG) issues its second Interim Management Statement
for 2011 which covers the period from 1 July 2011.

It should be noted that ICG's business is seasonally weighted towards the second
half  of the year (and  particularly the third quarter)  where normally a higher
proportion  of the Group's operating  profit is generated than  in the first six
months.

In  the  three  months  to  30 September,  the  Group recorded turnover of €84.9
million (up 4.6%) and EBITDA of €23.9 million compared with €25.0 million in the
same  quarter in  2010.  The reduction  in EBITDA  is due  to sustained high oil
prices  (up  €3.7  million  in  the  quarter) and soft tourism markets partially
offset  by  higher  yields  in  the  car  market  and  volume growth in freight.
 Operating  profit in the quarter was €18.5  million versus €19.0 million in the
same period in 2010.



Volumes July - October

In the ferries division, the trends outlined in our half yearly report continued
in  the period from  July to October  with lower car  volumes (down 6.2%) but at
higher  yields.  Passenger  numbers were  higher (up  0.3%) reflecting increased
coach,  rail and foot passengers, and there  was also growth in RoRo freight (up
4.7% in  the 4 months).  Container  freight volumes for  the same period were up
4.1% at  138,400 teu, while units  lifted at our  ports were up 12.0% at 63,700
lifts.



Year to Date Volumes

In  the year  to date  (ten months  to 31 October 2011), passengers carried were
down  1.7% at  1,353,900, while  car  numbers  were  down  4.7% at 311,000. RoRo
freight  volumes in the same  period were up 9.0% on  last year at 161,600 units
reflecting  the benefits of  reduced competing capacity  on the Dublin Liverpool
route.  Container freight volumes, which had  been 2.5% behind the previous year
at  the six month stage, were in line  with the previous year after 10 months at
343,700 teu,  while units  handled at  our port  terminals in Dublin and Belfast
were up by 13.4% at 157,900 lifts.



Cumulative Financial Results to 30 September (unaudited)

Group  revenue for the  nine months to  30(th) September 2011 was €211.5 million
(2010:  €203.6 million).  Revenue in  the Ferries division was  in line with the
comparable period in 2010, while in the Container & Terminal division cumulative
revenue  was up 9.7% year on year. EBITDA  for the nine months was €40.0 million
(2010:  €45.0 million),  while operating  profit for  the nine  months was €25.0
million  compared with €27.8 million in the  same period in 2010, a reduction of
10.1%.  Year  to date, i.e.  to 30 September 2011, fuel  costs are €38.6 million
versus €30.6 million in 2010.



Financial Position

During  the  quarter,  there  was  an  increase  in working capital for seasonal
reasons  and also as a  consequence of the increase  in our freight business.  A
dividend  of €8.2 million was  also paid during the  quarter.  At the end of the
quarter,  net debt stood at €13.0 million compared with €14.4 million at 30 June
2011.



Outlook

The  economic backdrop  remains challenging.   The impact  of the adjustments in
public finances in both Ireland and the UK is affecting both tourism and freight
demand  although the reduction in vessel capacity on Dublin Liverpool has helped
to  offset the weak freight demand.  Nevertheless, we have carefully managed our
cost  base  and  our  operational  capacity  to  continue  to be able to compete
successfully  in this  tough trading  environment.  The  continued high level of
fuel prices (expected to result in a fuel bill for the year of approximately €52
million) however means that earnings for the year, as previously indicated, will
be lower than in 2010.



14 Nov 2011











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Source: Irish Continental Group plc via Thomson Reuters ONE

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