Irish Continental Group PLC
12 December 2005
IRISH CONTINENTAL GROUP PLC
Trading update
Irish Continental Group plc ('ICG') announces that, arising from the
interruption to services at its subsidiary Irish Ferries Limited
('the Company'), which commenced on 24 November 2005 and continues to date,
earnings , before exceptional items , for the year to 31 December 2005 will be
substantially below market expectations.
In our Interim Statement issued on 8 September 2005, the Company announced that
it was engaged in a review process, in an attempt to progress a sustainable way
forward in crewing our Irish Sea vessels. On 16 September the Company announced
a restructuring of crewing on its vessels serving the Irish Sea. A voluntary
severance package was offered with a deadline for acceptance of 2 October 2005.
A large majority of the relevant staff (90%) elected to accept the package. On
24 November 2005 the Company began to train replacement crew on board two of the
vessels. Industrial action was then taken by some of the existing crew which
resulted in the cessation of services on those vessels from that date. On 27
November industrial action commenced on a third vessel.
Separately, the Company was advised by Iarnrod Eireann / Irish Rail , which is
the Rosslare Port Authority, that a fourth vessel would not be handled on 27
November 2005, at the port of Rosslare, its scheduled port in Ireland. All
services have remained suspended since that date.
Following intervention by the National Implementation Body, talks to resolve the
interruption to services commenced on 5 December 2005 at the Labour Relations
Commission, the State's conciliation service. These talks were adjourned,
without resolution, on 9 December 2005.
The interruption to service is estimated to have resulted in an adverse profit
effect of €5.5 m due to lost revenue and additional costs as at the date of this
announcement. In the event that services remain suspended for the remainder of
the financial year the total adverse profit effect is estimated at €11m.
End
12 December 2005
This information is provided by RNS
The company news service from the London Stock Exchange
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