Half-yearly report
HALF YEARLY FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2008
+-------------------------------------------------------------------+
| | Unaudited | Audited |
|------------------------+-------------------------+----------------|
| Financial Highlights | Six months to 30th June | Financial Year |
|------------------------+-------------------------+----------------|
| | 2008 | 2007 | 2007 |
|------------------------+------------+------------+----------------|
| Revenue | ¤166.1m | ¤163.2m | ¤355.8m |
|------------------------+------------+------------+----------------|
| Operating Profit | ¤17.3m | ¤16.4m | ¤50.1m |
| before Non Trading | | | |
| Charge | | | |
|------------------------+------------+------------+----------------|
| Non Trading Charge | - | ¤(16.5)m | ¤(10.1)m |
|------------------------+------------+------------+----------------|
| Operating Profit / | ¤17.3m | ¤(0.1)m | ¤40.0m |
| (Loss) | | | |
|------------------------+------------+------------+----------------|
| EPS Basic | 67.1c | (6.8)c | 160.9c |
|------------------------+------------+------------+----------------|
| EPS Diluted | 66.3c | - | 158.9c |
|------------------------+------------+------------+----------------|
| EPS Adjusted | 58.9c | 50.8c | 178.6c |
|------------------------+------------+------------+----------------|
| EPS Adjusted Diluted | 58.2c | 49.4c | 176.3c |
|------------------------+------------+------------+----------------|
| Net Debt | ¤70.3m | ¤121.2m | ¤84.5m |
+-------------------------------------------------------------------+
Other Key Points
+-------------------------------------------------------------+
| | 30 Jun 2008 | 30 Jun 2007 | % |
|--------------------------+-------------+-------------+------|
| | 000 | 000 | % |
|--------------------------+-------------+-------------+------|
| Passengers | 681 | 689 | -1.2 |
|--------------------------+-------------+-------------+------|
| Cars | 169 | 173 | -2.3 |
|--------------------------+-------------+-------------+------|
| RoRo Freight | 127 | 131 | -3.1 |
|--------------------------+-------------+-------------+------|
| Container Freight (teu.) | 273 | 255 | +7.1 |
|--------------------------+-------------+-------------+------|
| Port Lifts | 111 | 108 | +2.8 |
+-------------------------------------------------------------+
Comment
"This is a robust operating result, with profit before interest of
¤17.3 million in the first half of 2008 despite substantially higher
fuel costs and a challenging economic backdrop".
John B. McGuckian
Chairman
29th August 2008
Enquiries: Eamonn Rothwell Tel: +353-1-607 5628
Garry O'Dea Tel: +353-1-607 5628
Email: info@icg.ie
Website: www.icg.ie
INTERIM MANAGEMENT REPORT
FOR THE SIX MONTHS TO 30TH JUNE 2008
RESULTS
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 ¤166.1 million compared with ¤163.2 million in the same
period in 2007. Operating profit before non-trading charge was ¤17.3
million compared with ¤16.4 million in 2007. Operating profit was
also ¤17.3 million, compared with a loss of ¤0.1 million in the same
period in 2007 (the prior year figures having been influenced by a
non-trading charge of ¤16.5 million which is explained below). There
was a net finance credit of ¤0.2 million which includes a net credit
of ¤2.0 million in relation to expected income on defined benefit
pension scheme assets less interest on scheme liabilities. There was
a profit before tax of ¤17.5 million compared with a loss of ¤1.0
million in the first half of 2007. The tax charge was ¤1.0 million
(2007: ¤0.6 million). Basic EPS was 67.1c compared with a loss of
6.8c in 2007. Adjusted EPS, i.e. before non-trading items and the net
pension interest credit, amounted to 58.9c (50.8c in 2007).
This strong result was achieved despite Group wide fuel costs rising
64% from ¤15.2 million to ¤24.9 million.
SIGNIFICANT EVENTS FOR THE PERIOD
Sale of the MV Normandy
During the period the MV Normandy was sold, at a profit of ¤3.8
million, as it had become surplus to the Group's requirements. The
ship has been replaced on the route by the ¤51 million MV Oscar
Wilde, acquired in 2007.
Redemption of redeemable shares
On 7 March 2008 the Board redeemed one redeemable share per ICG unit
for a consideration of 100 cent per share. This was paid in April
2008 and amounted to ¤24.5 million.
PRIOR YEAR NON TRADING CHARGE
During the previous year the Company had received offers for the
Company from Aella plc and Moonduster Limited. Arising from the
offers, the Company had estimated total expenses incurred at 30 June
2007 of ¤16.5 million. The Aella plc offer was rejected by
shareholders on 26 September 2007 and subsequently, in the financial
statements for the year ended 31 December 2007, this expense reduced
to ¤10.1 million.
EXTRAORDINARY GENERAL MEETING / REDEMPTION OF REDEEMABLE SHARES
The Board has decided to convene an Extraordinary General Meeting of
the Company, to consider and vote on a number of resolutions which
concern the share capital of the Company. A separate notice of
meeting will be sent to all shareholders as soon as is practicable.
One of the resolutions empowers the Directors to allot authorised,
but unissued, redeemable shares to existing shareholders.
Subject to the passing of this resolution, the Board intends to
redeem one redeemable share per ICG unit for a cash consideration of
27.5 cent per redeemable share.
OPERATIONAL REVIEW
Ferries Division
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 bareboat chartering of multipurpose
ferries to third parties. Irish Ferries operated 2,128 sailings in
the period, up 3.5% on 2007.
Revenue in the division was ¤83.9 million (2007: ¤85.9 million).
Profit from operations was ¤13.9 million (2007: ¤12.2 million),
including the profit on disposal of the MV Normandy.
Passenger
Irish Ferries' passenger business is focused on passengers travelling
with their own cars. Total passengers carried were down 1.2% at
681,000 while total cars carried in the first half of 2008 were
169,000, down 2.3% on the first half of 2007. (In the first half of
2007, Irish Ferries had an extremely strong performance, with cars up
19%).
Freight
The overall Roll On Roll Off freight market has slowed, reflecting
the economic backdrop, and Irish Ferries' volumes were down 3.1% to
127,000 units, when compared with the first half of 2007. (Again,
Irish Ferries' first half of 2007 performance, up 19%, was stronger
than the market as a whole).
Fleet
On the Ireland France route, the MV Oscar Wilde has replaced MV
Normandy. The MV Oscar Wilde, with its substantial additional
capacity, and much higher standard of accommodation, is proving very
popular in the market place. The new vessel, a ¤51 million
investment in the route, is more costly to operate than the MV
Normandy, although this is more than offset in the first half of 2008
by the profit on disposal of the latter vessel of ¤3.8 million.
Chartering
Two vessels within the Group remained on charter to P&O during the
period. The revenue in the current half year has fallen due to the
reduced charter rates which took effect in the second half of 2007,
together with the weakening of sterling and the dollar against the
euro. In the corresponding period in the previous year, the Group
also had charter income in respect of the MV Oscar Wilde, which had
been chartered back to the previous owners, Color Line, for
approximately seven months.
Container and Terminal Division
The division includes the intermodal freight services Eucon and
Feederlink as well as the division's strategically located container
terminals in Dublin (DFT) and Belfast (BCT).
Turnover in the division grew 6.3% to ¤82.2 million (2007: ¤77.3
million), while profit from operations was ¤3.4 million (2007: ¤4.2
million).
Total containers shipped were up 7.1% at 273,000 teu., while the
number of units lifted at division's port facilities in Dublin (DFT)
and Belfast (BCT) were up 2.8% at 111,000 lifts.
The capacity expansion at DFT, the division's lift-on / lift-off
terminal in Dublin Port, which commenced in 2007, is progressing and
is now expected to be fully complete in the second half of 2009.
FINANCE
Capital expenditure in the period was ¤6.1 million (2007: ¤51.3
million). Net debt at the end of the period amounted to ¤70.3
million. This compares with ¤84.5 million at 31 December 2007, the
reduction due to the positive cash flow from operations and the
proceeds of sale of the MV Normandy, partially offset by the ¤24.5
million redemption of redeemable shares.
The retirement benefit obligation has been reviewed at the half year
and the net surplus in schemes has reduced from ¤25.9 million at 31
December 2007 to ¤8.5 million at the end of this period.
Shareholders' equity was ¤177.6 million at 30 June 2008, compared
with ¤212.3 million at 31 December 2007. The main movements in equity
comprise profit for the period of ¤16.5 million, actuarial loss on
retirement benefits of ¤19.5 million, adverse exchange translation
movements of ¤9.0 million and redemption of redeemable shares of
¤24.5 million.
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.
However, it is not possible to eliminate all risk. The key risks
facing the Group in the six months to 31 December 2008 include the
following:
* Safety
The Group is dependent on the safe operation of both passenger and
freight vessels. There is a risk that any of the Group's vessels
could be involved in an incident which could cause loss of life and
cargo and cause significant interruption to the Group's business.
Similarly, in the event that critical port installations were to be
damaged and placed out of commission for a protracted period of time,
there is the potential for substantial business interruption. In
mitigation, the Group has a major accident response plan for
emergency situations and the Group carries insurance in respect of
passenger, cargo and third party liabilities, but does not carry
insurance for business interruption.
* Market Risk
The passenger market is subject to general economic conditions, the
propensity of consumers to travel and more specifically, to
competitive threat from airlines, particularly short haul airlines.
The freight market is subject to general economic conditions and in
particular the volume of international trade in North West Europe for
the remainder of 2008.
* Fuel Volatility
The Group's vessels consume heavy fuel oil (HFO) and marine diesel
oil (MDO) both of which are subject to price volatility which may
continue in the remaining months to 31 December 2008. It is the
Group's current policy to purchase these commodities in the spot
markets and to remain unhedged.
* Business Continuity / Interruption
The business of the Group is exposed to the risk of interruption from
incidents such as mechanical failure, labour disputes, either within
the Group or in key suppliers, for example ports or fuel suppliers,
or a loss of significant IT systems.
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.
GOING CONCERN
After making enquiries, the Directors have a reasonable expectation
that the Group has adequate resources to continue in operational
existence for the foreseeable future. For this reason, they continue
to adopt the going concern basis in preparing this half yearly
financial report.
AUDITOR REVIEW
This half yearly financial report has not been audited or reviewed by
the auditors of the Group pursuant to the Auditing Practices Board
guidance on Review of Interim Financial Information.
CURRENT TRADING & OUTLOOK
In the year to date, passenger car volumes are down 4.5% and RoRo
freight volumes are down 5%, while in the Container & Terminal
Division, container volumes have risen 4% year to date.
Fuel costs remain high and, in these circumstances, it is inevitable
that prices, for both passenger travel and freight, will have to
rise. Irish Ferries will also be actively reviewing the schedule of
the Jonathan Swift fast ferry with a view to reducing frequency in
the less busy winter season and thereby conserving fuel.
FORWARD LOOKING STATEMENTS
This report contains certain forward-looking statements and 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 and those 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
29th August 2008
Responsibility Statement
The Directors are responsible for preparing the Half Yearly Financial
Report in accordance with the Transparency (Directive 2004/109/EC)
Regulations 2007, the related Transparency Rules of the Irish
Financial Services Regulatory Authority and with IAS 34, Interim
Financial Reporting as adopted by the European Union.
The Directors confirm that, to the best of their knowledge:
* the Group Condensed Financial Statements for the half year
ended 30 June 2008 have been prepared in accordance with IAS 34
Interim Financial Reporting as adopted by the European Union and
gives a true and fair view of the assets, liabilities, financial
position and profit of the Group;
* 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 2008, and a
description of the principal risks and uncertainties for the
remaining six months;
* 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 it was determined that
there were no related party transactions that have materially
affected the financial position or performance of the Group in this
period.
Eamonn Rothwell Chief Executive Officer
Garry O'Dea Finance Director
29th August 2008
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2008
+--------------------------------------------------------------------+
| | | |Unaudited| |Unaudited| |Audited|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 30 Jun | | 30 Jun | |31 Dec |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 2008 | | 2007 | | 2007 |
|----------------------------+-----+-+---------+-+---------+-+-------|
| |Notes| | ¤m| | ¤m| | ¤m|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Continuing operations | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Revenue | | | 166.1| | 163.2| | 355.8|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Depreciation | | | (12.2)| | (16.2)| | (30.1)|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Employee benefits expense | | | (14.8)| | (15.7)| | (32.8)|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Other operating expenses | | | (121.8)| | (114.9)| |(242.8)|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 17.3| | 16.4| | 50.1|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Non trading charge | 4 | | -| | (16.5)| | (10.1)|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Operating profit / (loss) | | | 17.3| | (0.1)| | 40.0|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Investment revenue | | | 9.7| | 10.2| | 20.6|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Finance costs | | | (9.5)| | (11.1)| | (19.9)|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Profit / (loss) before | | | 17.5| | (1.0)| | 40.7|
|taxation | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Income tax expense | | | (1.0)| | (0.6)| | (2.4)|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Profit / (loss) for the | | | | | | | |
|period: all | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|attributable to equity | | | | | | | |
|holders of the | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|parent | | | 16.5| | (1.6)| | 38.3|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Earnings / (loss) per | | | | | | | |
|ordinary share (cent) | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|All from continuing | | | | | | | |
|operations | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|-basic | 6 | | 67.1| | (6.8)| | 160.9|
|----------------------------+-----+-+---------+-+---------+-+-------|
|-diluted | 6 | | 66.3| | -| | 158.9|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
+--------------------------------------------------------------------+
CONDENSED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR
THE SIX MONTHS ENDED 30 JUNE 2008
+--------------------------------------------------------------------+
| | | |Unaudited| |Unaudited| |Audited|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 30 Jun | | 30 Jun | |31 Dec |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 2008 | | 2007 | | 2007 |
|----------------------------+-----+-+---------+-+---------+-+-------|
| |Notes| | ¤m| | ¤m| | ¤m|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Gain on cash flow hedges | | | -| | -| | 0.1|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Exchange differences on | | | | | | | |
|translation of foreign | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|operations | | | (9.0)| | (1.0)| | (12.2)|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Actuarial loss on retirement| 11 | | (19.5)| | (0.8)| | (0.4)|
|benefit obligations | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Deferred Tax on Group | | | | | | | |
|retirement benefit | | | 0.6| | (0.3)| | (0.7)|
|obligations | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Exchange difference on | | | | | | | |
|retirement benefit | | | 0.5| | -| | 0.3|
|obligations | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Net amount directly | | | (27.4)| | (2.1)| | (12.9)|
|recognised in equity | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Profit / (loss) for the | | | 16.5| | (1.6)| | 38.3|
|period | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Total recognised (expense) /| | | | | | | |
|income for the | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|period: all attributable to | | | | | | | |
|equity holders of the parent| | | (10.9)| | (3.7)| | 25.4|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
+--------------------------------------------------------------------+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2008
+------------------------------------------------------------------------------------------------+
| | | | | Share | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| | Share | Share |Capital|Options|Hedging|Translation|Retained| |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| |Capital|Premium|Reserve|Reserve|Reserve| Reserve |Earnings|Total |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| | ¤m | ¤m | ¤m | ¤m | ¤m | ¤m | ¤m | ¤m |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
|Balance at 1 January 2008 | 16.5| 48.1| 2.2| 1.0| 0.6| (9.5)| 153.4| 212.3|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
|Total recognised income and | | | | | | | | |
|expense for the period | -| -| -| -| -| (9.0)| (1.9)|(10.9)|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
|Exercise of share options - | | | | | | | | |
|shares issued at premium | 0.1| 0.6| -| -| -| -| -| 0.7|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
|Redemption of redeemable | | | | | | | | |
|share capital (note 5) | -| -| -| -| -| -| (24.5)|(24.5)|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| | 0.1| 0.6| -| -| -| (9.0)| (26.4)|(34.7)|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
|Balance at 30 June 2008 | 16.6| 48.7| 2.2| 1.0| 0.6| (18.5)| 127.0| 177.6|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
|Analysed as follows: | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
|Share capital | | | | | | | | 16.6|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
|Share premium | | | | | | | | 48.7|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
|Other reserves | | | | | | | |(14.7)|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
|Retained earnings | | | | | | | | 127.0|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+------|
| | | | | | | | | 177.6|
+------------------------------------------------------------------------------------------------+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2007
+-----------------------------------------------------------------------------------------------+
| | | | | Share | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | Share | Share |Capital|Options|Hedging|Translation|Retained| |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| |Capital|Premium|Reserve|Reserve|Reserve| Reserve |Earnings|Total|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | ¤m | ¤m | ¤m | ¤m | ¤m | ¤m | ¤m | ¤m |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Balance at 1 January 2007 | 15.9| 40.6| 2.2| 0.5| 0.5| 2.7| 115.9|178.3|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Total recognised income and | | | | | | | | |
|expense for the period | -| -| -| -| -| (1.0)| (2.7)|(3.7)|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Exercise of share options - | | | | | | | | |
|shares issued at premium | 0.1| 0.9| -| -| -| -| -| 1.0|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Employee share options | | | | | | | | |
|expense | -| -| -| 0.3| -| -| -| 0.3|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | 0.1| 0.9| -| 0.3| -| (1.0)| (2.7)|(2.4)|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Balance at 30 June 2007 | 16.0| 41.5| 2.2| 0.8| 0.5| 1.7| 113.2|175.9|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Analysed as follows: | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Share capital | | | | | | | | 16.0|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Share premium | | | | | | | | 41.5|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Other reserves | | | | | | | | 5.2|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Retained earnings | | | | | | | |113.2|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | |175.9|
+-----------------------------------------------------------------------------------------------+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2007
+-----------------------------------------------------------------------------------------------+
| | | | | Share | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | Share | Share |Capital|Options|Hedging|Translation|Retained| |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| |Capital|Premium|Reserve|Reserve|Reserve| Reserve |Earnings|Total|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | ¤m | ¤m | ¤m | ¤m | ¤m | ¤m | ¤m | ¤m |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Balance at | | | | | | | | |
|1 January 2007 | 15.9| 40.6| 2.2| 0.5| 0.5| 2.7| 115.9|178.3|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Total recognised | | | | | | | | |
|income and expenses | | | | | | | | |
|for the year | -| -| -| -| 0.1| (12.2)| 37.5| 25.4|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Exercise of share options | | | | | | | | |
| - shares issued at premium | 0.6| 7.5| -| -| -| -| -| 8.1|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Employee share options | | | | | | | | |
|expense | -| -| -| 0.5| -| -| -| 0.5|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | 0.6| 7.5| -| 0.5| 0.1| (12.2)| 37.5| 34.0|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Balance at 31 | | | | | | | | |
|December 2007 | 16.5| 48.1| 2.2| 1.0| 0.6| (9.5)| 153.4|212.3|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Analysed as follows: | | | | | | | | |
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Share capital | | | | | | | | 16.5|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Share premium | | | | | | | | 48.1|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Other reserves | | | | | | | |(5.7)|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
|Retained earnings | | | | | | | |153.4|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | |212.3|
|----------------------------+-------+-------+-------+-------+-------+-----------+--------+-----|
| | | | | | | | | |
+-----------------------------------------------------------------------------------------------+
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2008
+--------------------------------------------------------------------+
| | | |Unaudited| |Unaudited| |Audited|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 30 Jun | | 30 Jun | |31 Dec |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 2008 | | 2007 | | 2007 |
|----------------------------+-----+-+---------+-+---------+-+-------|
| |Notes| | ¤m| | ¤m| | ¤m|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Assets | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Non current assets | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Property, plant & equipment | 7 | | 260.7| | 305.4| | 277.4|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Intangible assets | 8 | | 2.3| | 2.6| | 2.2|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Long term receivables | | | 4.5| | 4.7| | 4.6|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Retirement benefit surplus | 11 | | 17.2| | 31.2| | 32.5|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 284.7| | 343.9| | 316.7|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Current assets | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Inventories | | | 1.6| | 0.8| | 1.3|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Trade and other receivables | | | 46.6| | 46.1| | 46.6|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Derivative financial | | | 0.6| | 0.4| | 0.6|
|instruments | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Cash and cash equivalents | | | 23.8| | 19.0| | 12.4|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 72.6| | 66.3| | 60.9|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Asset classified as held for| | | -| | -| | 9.0|
|sale | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 72.6| | 66.3| | 69.9|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Total assets | | | 357.3| | 410.2| | 386.6|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Equity and liabilities | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Capital and reserves | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Share capital | | | 16.6| | 16.0| | 16.5|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Share premium | | | 48.7| | 41.5| | 48.1|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Other reserves | | | (14.7)| | 5.2| | (5.7)|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Retained earnings | | | 127.0| | 113.2| | 153.4|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Equity attributable to | | | 177.6| | 175.9| | 212.3|
|equity holders | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Non-current liabilities | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Borrowings | | | 78.0| | 111.5| | 83.5|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Provisions | | | 0.3| | 2.9| | 0.3|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Deferred grant | | | 1.2| | 1.3| | 1.3|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Deferred tax liabilities | | | 5.2| | 5.9| | 6.2|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Retirement benefit | 11 | | 8.7| | 9.2| | 6.6|
|obligation | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 93.4| | 130.8| | 97.9|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Current liabilities | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Borrowings | | | 16.1| | 28.7| | 13.4|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Trade and other payables | | | 62.1| | 70.5| | 57.2|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Current tax liabilities | | | 7.6| | 4.2| | 5.3|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Provisions | | | 0.4| | -| | 0.4|
|----------------------------+-----+-+---------+-+---------+-+-------|
|Deferred grant | | | 0.1| | 0.1| | 0.1|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 86.3| | 103.5| | 76.4|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Total liabilities | | | 179.7| | 234.3| | 174.3|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|----------------------------+-----+-+---------+-+---------+-+-------|
|Total equity and liabilities| | | 357.3| | 410.2| | 386.6|
|----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
+--------------------------------------------------------------------+
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2008
+-------------------------------------------------------------------+
| | | | Unaudited | | Unaudited | | Audited |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | 30 Jun | | 30 Jun | | 31 Dec |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | 2008 | | 2007 | | 2007 |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | Notes | | ¤m | | ¤m | | ¤m |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Net cash | 12 | | 28.4 | | 42.7 | | 77.5 |
| from | | | | | | | |
| operating | | | | | | | |
| activities | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Investing | | | | | | | |
| activities | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Interest | | | 0.5 | | 0.6 | | 1.3 |
| received | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Proceeds on | | | | | | | |
| disposal of | | | 14.4 | | - | | 0.1 |
| property, | | | | | | | |
| plant and | | | | | | | |
| equipment | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Purchases | | | (5.5) | | (51.0) | | (58.0) |
| of | | | | | | | |
| property, | | | | | | | |
| plant and | | | | | | | |
| equipment | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Purchase of | | | (0.6) | | (0.3) | | (0.4) |
| intangible | | | | | | | |
| assets | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Net cash | | | 8.8 | | (50.7) | | (57.0) |
| from / | | | | | | | |
| (used in) | | | | | | | |
| investing | | | | | | | |
| activities | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Financing | | | | | | | |
| activities | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Redemption | | | (24.5) | | - | | - |
| of | | | | | | | |
| redeemable | | | | | | | |
| shares | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Repayments | | | (38.0) | | (50.0) | | (85.6) |
| of | | | | | | | |
| borrowings | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Repayments | | | (1.1) | | (1.3) | | (2.9) |
| of | | | | | | | |
| obligations | | | | | | | |
| under | | | | | | | |
| finance | | | | | | | |
| leases | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Proceeds on | | | 0.7 | | 1.0 | | 8.1 |
| issue of | | | | | | | |
| share | | | | | | | |
| capital | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| New bank | | | 34.5 | | 62.5 | | 62.5 |
| loans | | | | | | | |
| raised | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| New finance | | | - | | 0.1 | | 0.1 |
| leases | | | | | | | |
| raised | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Increase in | | | 3.4 | | 4.4 | | - |
| bank | | | | | | | |
| overdrafts | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Net cash | | | (25.0) | | 16.7 | | (17.8) |
| (used in) / | | | | | | | |
| from | | | | | | | |
| financing | | | | | | | |
| activities | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Net | | | | | | | |
| increase in | | | 12.2 | | 8.7 | | 2.7 |
| cash and | | | | | | | |
| cash | | | | | | | |
| equivalents | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Cash and | | | | | | | |
| cash | | | 12.4 | | 11.0 | | 11.0 |
| equivalents | | | | | | | |
| at the | | | | | | | |
| beginning | | | | | | | |
| of the year | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Effect of | | | (0.8) | | (0.7) | | (1.3) |
| foreign | | | | | | | |
| exchange | | | | | | | |
| rate | | | | | | | |
| changes | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Cash and | | | | | | | |
| cash | | | | | | | |
| equivalents | | | | | | | |
| at the end | | | | | | | |
| of the year | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| Bank | | | 23.8 | | 19.0 | | 12.4 |
| balances | | | | | | | |
| and cash | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
|-------------+-------+---+-----------+---+-----------+---+---------|
| | | | | | | | |
+-------------------------------------------------------------------+
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 30 JUNE 2008
1. General Information
These condensed financial statements do not comprise the statutory
accounts within the meaning of Section 19 of the Companies
(Amendment) Act 1986. The summary financial statements for the year
ended 31 December 2007, as presented in this Interim Report,
represent an abbreviated version of the Group's full financial
statements for that year. Those financial statements contained an
unqualified audit report without reference to any matters of emphasis
and have been filed with the Companies Registration Office in
Ireland.
The interim figures included in the condensed financial statements
for the six months ended 30 June 2008 and the comparative amounts for
the six months ended 30 June 2008 are unaudited.
2. Accounting policies
The Group Condensed Financial Statements for the six months ended 30
June 2008 have been prepared in accordance with the Transparency
Regulations 2007, the related Transparency Rules of the Irish
Financial Services Regulatory Authority and with IAS 34 'Interim
Financial Reporting' as adopted by the European Union. The accounting
policies and methods of computation applied in preparing this Interim
Report are consistent with those set out in the Group Annual Report
for the financial year ended 31 December 2007, which is available at
www.icg.ie.
Three interpretations issued by the International Financial Reporting
Interpretations Committee are effective in the current period for the
first time. These are: IFRIC 11 - IFRS 2 Group and Treasury Share
Transactions; IFRIC 12 - Service Concession Arrangements and IFRIC 14
- IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction. The adoption of these
interpretations has not led to any changes in the Group's accounting
policies and as a result no disclosure requirements arise.
There have been no material change in estimates in these interim
accounts based on the estimates that have previously been made in the
prior year interim accounts to 30 June 2007 and the prior year
financial statements to 31 December 2007.
3. Segmental information: Analysis by class of business
+-----------------------------------------------------------------------+
| | Unaudited | Audited |
|--------------+-------------------------------------+------------------|
| | 6 months ended | 12 months ended |
|--------------+-------------------------------------+------------------|
| | 30 Jun 2008 | 30 Jun 2007 | 31 Dec 2007 |
|--------------+------------------+------------------+------------------|
| | Revenue | Profit | Revenue | Profit | Revenue | Profit |
|--------------+---------+--------+---------+--------+---------+--------|
| | ¤m | ¤m | ¤m | ¤m | ¤m | ¤m |
|--------------+---------+--------+---------+--------+---------+--------|
| | | | | | | |
|--------------+---------+--------+---------+--------+---------+--------|
|Ferries & | 83.9| 13.9| 85.9| 12.2| 197.9| 40.9|
|Travel | | | | | | |
|--------------+---------+--------+---------+--------+---------+--------|
|Container and | 82.5| 3.4| 77.5| 4.2| 158.4| 9.2|
|Terminal | | | | | | |
|--------------+---------+--------+---------+--------+---------+--------|
|Intersegment | (0.3)| -| (0.2)| -| (0.5)| -|
|--------------+---------+--------+---------+--------+---------+--------|
|Net Interest | -| 0.2| -| (0.9)| -| 0.7|
|--------------+---------+--------+---------+--------+---------+--------|
|Non allocated | -| -| -| (16.5)| -| (10.1)|
|item | | | | | | |
|--------------+---------+--------+---------+--------+---------+--------|
| | | | | | | |
|--------------+---------+--------+---------+--------+---------+--------|
| | 166.1| 17.5| 163.2| (1.0)| 355.8| 40.7|
|--------------+---------+--------+---------+--------+---------+--------|
| | | | | | | |
+-----------------------------------------------------------------------+
Revenue in the Group's Ferries Division is weighted towards the
second half of the year due to patterns of passenger demand.
4. Non trading charge
+-------------------------------------------------------------------+
| | | Unaudited | Unaudited | Audited |
|---------------+---+----------------+---------------+--------------|
| | | | 6 months | 12 months |
| | | 6 months ended | ended | ended |
|---------------+---+----------------+---------------+--------------|
| | | 30 Jun 2008 | 30 Jun 2007 | 31 Dec 2007 |
|---------------+---+----------------+---------------+--------------|
| | | ¤m | ¤m | ¤m |
|---------------+---+----------------+---------------+--------------|
| | | | | |
|---------------+---+----------------+---------------+--------------|
| Takeover | | - | (16.5) | (10.1) |
| costs | | | | |
|---------------+---+----------------+---------------+--------------|
| | | | | |
+-------------------------------------------------------------------+
Takeover costs
During the prior year the Company received offers for the entire
issued and to be issued share capital of the company from Aella plc
and Moonduster Limited. Arising from the offers, the Company engaged
professional advisors and, by entering into expense reimbursement
agreements, agreed to reimburse the offerors' expenses in certain
circumstances.
In the Interim accounts 2007, the Group reported a non trading
exceptional charge of ¤16.5 million, which represented the estimated
potential costs incurred by the Group in relation to the recommended
offers for the Group via a Scheme of Arrangement at that stage.
Subsequently, on 26 September 2007, the revised recommended
acquisition of the Group, by Aella plc, which had been announced on
20 August 2007, was voted on and not approved by the shareholders at
an Extraordinary General Meeting. The exceptional charge was then
reduced to ¤10.1 million as reported in the 2007 Annual Report.
5. Redemption of redeemable shares
+-------------------------------------------------------------------+
| | | Unaudited | Unaudited | Audited |
|-----------------------+---+-------------+-------------+-----------|
| | | 6 months | 6 months | 12 months |
| | | ended | ended | ended |
|-----------------------+---+-------------+-------------+-----------|
| | | | | 31 Dec |
| | | 30 Jun 2008 | 30 Jun 2007 | 2007 |
|-----------------------+---+-------------+-------------+-----------|
| | | ¤m | ¤m | ¤m |
|-----------------------+---+-------------+-------------+-----------|
| Redemption of one | | 24.5 | - | - |
| redeemable share for | | | | |
| 100c | | | | |
|-----------------------+---+-------------+-------------+-----------|
| | | | | |
+-------------------------------------------------------------------+
On 7 March 2008 the Board decided to redeem one redeemable share per
ICG unit for a consideration of 100 cent per share payable. This was
paid in April 2008.
There was no dividend paid in the period to 30 June 2008.
6. Earnings per share
+-------------------------------------------------------------------+
| | | Unaudited | Unaudited | Audited |
|-----------------------+---+-------------+-------------+-----------|
| | | 6 months | 6 months | 12 months |
| | | ended | ended | ended |
|-----------------------+---+-------------+-------------+-----------|
| | | | | 31 Dec |
| | | 30 Jun 2008 | 30 Jun 2007 | 2007 |
|-----------------------+---+-------------+-------------+-----------|
| | | Cent | cent | cent |
|-----------------------+---+-------------+-------------+-----------|
| | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Basic earnings / | | | | |
| (loss) per share | | 67.1 | (6.8) | 160.9 |
|-----------------------+---+-------------+-------------+-----------|
| Diluted earnings per | | | | |
| share | | 66.3 | - | 158.9 |
|-----------------------+---+-------------+-------------+-----------|
| Adjusted earnings per | | | | |
| share | | 58.9 | 50.8 | 178.6 |
|-----------------------+---+-------------+-------------+-----------|
| Adjusted diluted | | | | |
| earnings per share | | 58.2 | 49.4 | 176.3 |
|-----------------------+---+-------------+-------------+-----------|
| | | | | |
|-------------------------------------------------------------------|
| 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: |
|-------------------------------------------------------------------|
| | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Earnings | | ¤m | ¤m | ¤m |
|-----------------------+---+-------------+-------------+-----------|
| | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Earnings for the | | | | |
| purpose of basic and | | | | |
| diluted earnings per | | | | |
| share - | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Profit / (loss) for | | | | |
| the year attributable | | | | |
| to equity holders of | | | | |
| the parent | | 16.5 | (1.6) | 38.3 |
|-----------------------+---+-------------+-------------+-----------|
| Earnings for the | | | | |
| purpose of adjusted | | | | |
| earnings per share - | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Profit / (loss) for | | | | |
| the year attributable | | | | |
| to equity holders of | | | | |
| the parent | | 16.5 | (1.6) | 38.3 |
|-----------------------+---+-------------+-------------+-----------|
| Effect of non trading | | | | |
| charge | | - | 16.5 | 10.1 |
|-----------------------+---+-------------+-------------+-----------|
| Effect of expected | | | | |
| return on defined | | | | |
| benefit pension | | | | |
| scheme assets | | (9.2) | (9.6) | (19.3) |
|-----------------------+---+-------------+-------------+-----------|
| Effect of interest on | | | | |
| defined benefit | | | | |
| pension scheme | | | | |
| liabilities | | 7.2 | 6.7 | 13.4 |
|-----------------------+---+-------------+-------------+-----------|
| | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Earnings for the | | | | |
| purpose of adjusted | | | | |
| earnings per share | | 14.5 | 12.0 | 42.5 |
|-----------------------+---+-------------+-------------+-----------|
| | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Number of shares | | | | |
|-----------------------+---+-------------+-------------+-----------|
| | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Weighted average | | | | |
| number of ordinary | | | | |
| shares for the | | | | |
| purpose of basic | | | | |
| earnings per share | | 24.6 | 23.6 | 23.8 |
|-----------------------+---+-------------+-------------+-----------|
| Effect of dilutive | | | | |
| potential ordinary | | | | |
| shares: Share options | | 0.3 | 0.7 | 0.3 |
|-----------------------+---+-------------+-------------+-----------|
| | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Weighted average | | | | |
| number of ordinary | | | | |
| shares for the | | | | |
| purpose of diluted | | | | |
| adjusted earnings per | | | | |
| share | | 24.9 | 24.3 | 24.1 |
+-------------------------------------------------------------------+
7. Property, plant and equipment
+--------------------------------------------------------------------------------------+
| | Assets under | | Plant & | | Land & | |
|------------------+--------------+--------+-----------+----------+-----------+--------|
| | construction | Ships | equipment | Vehicles | buildings | Total |
|------------------+--------------+--------+-----------+----------+-----------+--------|
| | | | | | | |
|------------------+--------------+--------+-----------+----------+-----------+--------|
| | ¤m| ¤m| ¤m| ¤m| ¤m| ¤m|
|------------------+--------------+--------+-----------+----------+-----------+--------|
|Cost | | | | | | |
|------------------+--------------+--------+-----------+----------+-----------+--------|
|At 1 January 2008 | 0.5| 378.0| 66.9| 2.8| 24.5| 472.7|
|------------------+--------------+--------+-----------+----------+-----------+--------|
|Additions | 1.9| 2.0| 1.3| 0.3| -| 5.5|
|------------------+--------------+--------+-----------+----------+-----------+--------|
|Disposals | -| -| (0.4)| (0.4)| -| (0.8)|
|------------------+--------------+--------+-----------+----------+-----------+--------|
|Exchange | -| (17.7)| -| -| -| (17.7)|
|differences | | | | | | |
|------------------+--------------+--------+-----------+----------+-----------+--------|
|Reclassification | (2.3)| -| -| -| 2.3| -|
|------------------+--------------+--------+-----------+----------+-----------+--------|
|At 30 June 2008 | 0.1| 362.3| 67.8| 2.7| 26.8| 459.7|
|------------------+--------------+--------+-----------+----------+-----------+--------|
| | | | | | | |
|------------------+--------------+--------+-----------+----------+-----------+--------|
|Accumulated | | | | | | |
|depreciation | | | | | | |
|------------------+--------------+--------+-----------+----------+-----------+--------|
|At 1 January 2008 | -| 145.7| 40.5| 1.4| 7.7| 195.3|
|------------------+--------------+--------+-----------+----------+-----------+--------|
|Charge for period | -| 9.7| 1.7| 0.2| 0.2| 11.8|
|------------------+--------------+--------+-----------+----------+-----------+--------|
|Disposals | -| -| (0.3)| (0.3)| -| (0.6)|
|------------------+--------------+--------+-----------+----------+-----------+--------|
|Exchange | -| (7.4)| (0.1)| -| -| (7.5)|
|differences | | | | | | |
|------------------+--------------+--------+-----------+----------+-----------+--------|
|At 30 June 2008 | -| 148.0| 41.8| 1.3| 7.9| 199.0|
|------------------+--------------+--------+-----------+----------+-----------+--------|
| | | | | | | |
|------------------+--------------+--------+-----------+----------+-----------+--------|
|Net book amounts | | | | | | |
|------------------+--------------+--------+-----------+----------+-----------+--------|
|At 1 January 2008 | 0.5| 232.3| 26.4| 1.4| 16.8| 277.4|
|------------------+--------------+--------+-----------+----------+-----------+--------|
|At 30 June 2008 | 0.1| 214.3| 26.0| 1.4| 18.9| 260.7|
+--------------------------------------------------------------------------------------+
Certain of the Group's borrowings are secured on ships which have a
carrying amount of ¤91.4 million at 30 June 2008 (31 December 2007:
¤93.5 million).
At 30 June 2008 the Group has entered into commitments to the value
of ¤0.8 million for the purchase of fixed assets.
8. Intangible Assets
+-------------------------------+
| | | ¤m |
|---------------------+---+-----|
| | | |
|---------------------+---+-----|
| Cost | | |
|---------------------+---+-----|
| At 1 January 2008 | | 7.0 |
|---------------------+---+-----|
| Additions | | 0.6 |
|---------------------+---+-----|
| | | |
|---------------------+---+-----|
| At 30 June 2008 | | 7.6 |
|---------------------+---+-----|
| | | |
|---------------------+---+-----|
| | | |
|---------------------+---+-----|
| Amortisation | | |
|---------------------+---+-----|
| At 1 January 2008 | | 4.8 |
|---------------------+---+-----|
| Charge for the year | | 0.5 |
|---------------------+---+-----|
| | | |
|---------------------+---+-----|
| At 30 June 2008 | | 5.3 |
|---------------------+---+-----|
| | | |
|---------------------+---+-----|
| | | |
|---------------------+---+-----|
| Carrying amount | | |
|---------------------+---+-----|
| At 1 January 2008 | | 2.2 |
|---------------------+---+-----|
| | | |
|---------------------+---+-----|
| At 30 June 2008 | | 2.3 |
+-------------------------------+
9. Net debt
+-------------------------------------------------------------------+
| | Cash | Overdrafts | Loans | Leases | Total |
|------------------+-------+------------+--------+--------+---------|
| | ¤m | ¤m | ¤m | ¤m | ¤m |
|------------------+-------+------------+--------+--------+---------|
| At 1 January | | | | | |
| 2008 | | | | | |
|------------------+-------+------------+--------+--------+---------|
| Current assets | 12.4 | - | - | - | 12.4 |
|------------------+-------+------------+--------+--------+---------|
| Creditors due | - | (0.1) | (11.1) | (2.2) | (13.4) |
| within one year | | | | | |
|------------------+-------+------------+--------+--------+---------|
| Creditors due | - | - | (80.6) | (2.9) | (83.5) |
| after one year | | | | | |
|------------------+-------+------------+--------+--------+---------|
| | 12.4 | (0.1) | (91.7) | (5.1) | (84.5) |
|------------------+-------+------------+--------+--------+---------|
| | | | | | |
|------------------+-------+------------+--------+--------+---------|
| Cash flow | 12.2 | (3.4) | - | - | 8.8 |
|------------------+-------+------------+--------+--------+---------|
| Foreign exchange | (0.8) | - | 1.7 | - | 0.9 |
| rate changes | | | | | |
|------------------+-------+------------+--------+--------+---------|
| Drawdown | - | - | (34.5) | - | (34.5) |
|------------------+-------+------------+--------+--------+---------|
| Repayment | - | - | 38.0 | 1.0 | 39.0 |
|------------------+-------+------------+--------+--------+---------|
| | | | | | |
|------------------+-------+------------+--------+--------+---------|
| | 23.8 | (3.5) | (86.5) | (4.1) | (70.3) |
|------------------+-------+------------+--------+--------+---------|
| | | | | | |
|------------------+-------+------------+--------+--------+---------|
| At 30 June 2008 | | | | | |
|------------------+-------+------------+--------+--------+---------|
| Current assets | 23.8 | - | - | - | 23.8 |
|------------------+-------+------------+--------+--------+---------|
| Creditors due | - | (3.5) | (10.5) | (2.1) | (16.1) |
| within one year | | | | | |
|------------------+-------+------------+--------+--------+---------|
| Creditors due | - | - | (76.0) | (2.0) | (78.0) |
| after one year | | | | | |
|------------------+-------+------------+--------+--------+---------|
| | 23.8 | (3.5) | (86.5) | (4.1) | (70.3) |
|------------------+-------+------------+--------+--------+---------|
| | | | | | |
+-------------------------------------------------------------------+
10. 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 for the full financial year. The rate for the
current year is not expected to differ materially from the effective
tax rate used for the year ended 31 December 2007.
11. Retirement Benefit Schemes
Retirement benefit scheme valuations have been updated at the half
year to reflect management's best estimates of scheme assets and
scheme liabilities. Scheme assets have been valued as per investment
managers valuations at 30 June 2008. Scheme liabilities have been
estimated using the same assumptions as at 31 December 2007 except
that the discount rate has been increased to 6.25% (31 December 2007:
5.6%) for schemes with euro liabilities and 6.5% (31 December 2007:
5.6%) for schemes with sterling liabilities, reflecting the
underlying long term interest rate and yield on European AAA rated
bonds, and in respect of sterling schemes, the inflation rate has
been increased to 3.75% (31 December 2007: 3.0%).
+-------------------------------------------------------------------+
| | | Unaudited | Unaudited | Audited |
|-----------------------+---+-------------+-------------+-----------|
| | | 6 months | 6 months | 12 months |
| | | ended | ended | ended |
|-----------------------+---+-------------+-------------+-----------|
| | | | | 31 Dec |
| | | 30 Jun 2008 | 30 Jun 2007 | 2007 |
|-----------------------+---+-------------+-------------+-----------|
| | | ¤m | ¤m | ¤m |
|-----------------------+---+-------------+-------------+-----------|
| | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Opening surplus | | 25.9 | 20.0 | 19.8 |
|-----------------------+---+-------------+-------------+-----------|
| Current service cost | | (1.2) | (1.2) | (2.8) |
|-----------------------+---+-------------+-------------+-----------|
| Employer | | 1.1 | 1.1 | 3.0 |
| contributions paid | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Other finance income | | 2.0 | 2.9 | 5.9 |
|-----------------------+---+-------------+-------------+-----------|
| Actuarial loss | | (19.5) | (0.8) | (0.4) |
|-----------------------+---+-------------+-------------+-----------|
| Other | | 0.2 | - | 0.4 |
|-----------------------+---+-------------+-------------+-----------|
| Net Surplus | | 8.5 | 22.0 | 25.9 |
|-----------------------+---+-------------+-------------+-----------|
| | | | | |
|-----------------------+---+-------------+-------------+-----------|
| Schemes in surplus | | 17.2 | 31.2 | 32.5 |
|-----------------------+---+-------------+-------------+-----------|
| Schemes in deficit | | (8.7) | (9.2) | (6.6) |
|-----------------------+---+-------------+-------------+-----------|
| Net Surplus | | 8.5 | 22.0 | 25.9 |
+-------------------------------------------------------------------+
12. Net cash from operating activities
+---------------------------------------------------------------------+
| | | |Unaudited| |Unaudited| |Audited|
|-----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 30 Jun | | 30 Jun | |31 Dec |
|-----------------------------+-----+-+---------+-+---------+-+-------|
| | | | 2008 | | 2007 | | 2007 |
|-----------------------------+-----+-+---------+-+---------+-+-------|
| |Notes| | ¤m| | ¤m| | ¤m|
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Operating activities | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Profit / (loss) for the | | | 16.5| | (1.6)| | 38.3|
|period | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Adjustments for: | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Finance costs (net) | | | (0.2)| | 0.9| | (0.7)|
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Income tax expense | | | 1.0| | 0.6| | 2.4|
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Retirement benefit obligation| | | 1.2| | 1.2| | 2.8|
|- service cost | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Retirement benefit obligation| | | (1.1)| | (1.1)| | (3.0)|
|- payments | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Depreciation of property, | | | 11.8| | 15.7| | 29.2|
|plant and equipment | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Amortisation of intangible | | | 0.5| | 0.5| | 1.0|
|assets | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Amortisation of deferred | | | (0.1)| | -| | (0.1)|
|income | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Share based payment expense | | | -| | 0.3| | 0.5|
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Gain on disposal of property,| | | | | | | |
|plant and equipment | | | (3.9)| | -| | (0.1)|
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Decrease in restructuring | | | -| | -| | (1.3)|
|provisions | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Increase / (decrease) in | | | -| | 0.7| | (0.2)|
|other provisions | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Operating cash flow before | | | | | | | |
|movements in working capital | | | 25.7| | 17.2| | 68.8|
|-----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Increase in inventories | | | (0.3)| | (0.2)| | (0.7)|
|-----------------------------+-----+-+---------+-+---------+-+-------|
|(Increase) / decrease in | | | (0.2)| | 7.4| | 6.8|
|receivables | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Increase in payables | | | 5.7| | 22.9| | 10.1|
|-----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Cash generated from | | | 30.9| | 47.3| | 85.0|
|operations | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Income taxes paid | | | (0.1)| | (0.2)| | (1.0)|
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Interest paid | | | (2.4)| | (4.4)| | (6.5)|
|-----------------------------+-----+-+---------+-+---------+-+-------|
| | | | | | | | |
|-----------------------------+-----+-+---------+-+---------+-+-------|
|Net cash from operating | | | 28.4| | 42.7| | 77.5|
|activities | | | | | | | |
+---------------------------------------------------------------------+
13. Related party transactions
Transactions between the company and its subsidiaries, which are
related parties, have been eliminated on consolidation.
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 2007.
15. Composition of the Entity
There has been no change in the composition of the entity during the
period ended 30 June 2008.
16. Subsequent Events
There were no material subsequent events to report since the period
ended 30 June 2008.
17. Board Approval
This interim report was approved by the Board of Directors of Irish
Continental Group plc on 28th August 2008.
---END OF MESSAGE---
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