Interim Management Statement

INTERIM MANAGEMENT STATEMENT


Highlights

  * Passenger & Freight revenue up €3.3 million
  * Recovery in Ro Ro freight volumes
  * Fuel cost up €2.9 million in 4 months
  * Initiative to reduce VAT on hospitality a positive for tourism



Volumes   (Year to date, 14 May 2011)

 Cars                       96,700    -1.4%

 Passengers                430,100    -6.5%

 RoRo Freight               70,900   +11.7%

 Container Freight (teu)   151,600    -2.7%

 Terminal Lifts             69,900   +14.5%



Financial (January - April 2011)

                               2011     2010

 Revenue                     €77.5m   €75.7m   +2.4%

 EBITDA                       €5.2m    €8.0m   -35.0%

 EBIT                       (€1.6m)    €0.6m

 Profit (loss) before tax   (€1.2m)    €0.2m

 Net Debt                    €4.0m     €6.3m   (31 December)




Current Trading

ICG  issues this interim management statement which covers volume data up to 14
May  2011 (i.e. 19 weeks) and financial information for the first four months of
the  year.  It  should  be  noted  that ICG's business is significantly weighted
towards  the second half  of the year  when normally a  higher proportion of the
Group's  operating profit is generated  than in the first  six months. Also, the
comparative  figures for 2010 include the  period during which European airspace
was  closed due  to volcanic  ash, which  had a  significant positive  impact on
passenger volumes in particular, in 2010.

In the first four months of the year Group revenue was up 2.4% at €77.5 million,
compared  with €75.7 million in the same period last year. Passenger and freight
revenue  was up  4.5% while charter  revenue was  down €1.4  million due  to the
termination  of the  charter of  the Pride  of Bilbao.   Operating costs (before
depreciation  &  amortisation)  were  6.8% higher  at €72.3 million versus €67.7
million  the previous year, principally due  to a 24% increase (of €2.9 million)
in  fuel costs  to €15.3  million. The  remaining cost  increases were primarily
volume-related  port  charges  arising  from  increased  Ro  Ro freight volumes.
Earnings  before  interest  tax  and  depreciation  (EBITDA)  were  €5.2 million
compared  with €8.0 million in  the same period in  2010. The termination of the
charter of the Pride of Bilbao resulted in a reduction in EBITDA of €1.4 million
although  this was offset  by depreciation savings  of €0.8 million and interest
receivable  of €0.6 million.  There was net  interest receivable of €0.4 million
compared  with  a  charge  of  €0.3  million  the previous year. The loss before
interest  was €1.6million (2010  profit €0.6 million)  while the loss before tax
was  €1.2 million (2010 profit  €0.2 million). Net debt  at the end of April was
€4.0 million compared with €6.3 million at 31 December 2010.

In the period up to 14 May 2011, we carried 96,700 cars, a 1.4% reduction on the
same period last year.  The lower volumes were compensated for by higher yields.
In  the previous year, we  had an unprecedented increase  in passengers in April
due  to the  ash cloud  disruption to  air travel.  Consequently while our total
passenger  numbers were  in line  with expectations  at 430,100, they were 6.5%
behind  the  same  period  in  2010. On  a  like  for  like basis, i.e. ignoring
exceptional   passenger  business  carried  during  the  ash  cloud,  underlying
passenger and car business is in line with 2010.

In  the Roll on Roll off freight market, while the overall market is weaker than
expected, Irish Ferries carried 70,900 units, an increase of 11.7% compared with
the same period in 2010.

Container  freight volumes shipped decreased by 2.7% to 151,600 teu (twenty foot
equivalent  units) in  the period  to 14 May  2011 compared with the same period
last  year with an increase in freight to and from Ireland offset by a reduction
on the North Sea. Units handled at our terminals in Dublin and Belfast increased
by 14.5% year on year, over the same period.



Outlook

The  greatest  threat  to  our  financial  performance  this  year  is  the very
significant  increase  in  our  fuel  cost,  following  on  from the €10 million
increase  in our fuel bill  in 2010. We were successful  last year in passing on
that  increase in that financial  year. However given the  scale of the back-to-
back increase in 2011, it will be a significant challenge to pass on all of this
increase  in the  remainder of  the current  financial year,  if oil  remains at
current price levels. Notwithstanding the current difficult economic backdrop we
are  confident of passing on fuel cost  increases through the cycle, as has been
successfully proven by our business model in the past.

Container  volumes, particularly on the North Sea, are seeing some reduction due
to the disruption in the supply chain arising out of the earthquake in Japan.

While  it is too early  to predict the Summer  tourism market, the reductions in
VAT  in  the  hospitality  sector  recently  announced  in the Government's jobs
initiative  is a positive for inward tourism  which is also likely to be boosted
by  Tourism Ireland's recently announced 30% increase in its marketing budget in
the  UK market.  The capacity  reductions in  the Ro  Ro market  and the airline
sector are positive backdrops while the strength of the balance sheet is a major
positive in the current market.


Dublin
17 May 2011


Enquiries

Eamonn Rothwell, CEO,                  [phone]
Garry O'Dea, Finance Director,          [phone]







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Source: Irish Continental Group plc via Thomson Reuters ONE

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