Half-year report
29/08/2024 07:00
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Thursday 29 August 2024
HALF-YEARLY FINANCIAL REPORT
for the half year ended 30 June 2024
Irish Continental Group plc (ICG), the leading Irish-based maritime transport
group, reports its financial performance for the half-year ended 30 June 2024.
This half-yearly financial report references Alternative Performance Measures
(APMs) which are not defined under International Financial Reporting Standards
and which are explained in the Appendix to the half-year result.
Highlights
Financial summary
HY 2024* HY 2023** Change %
Revenue €285.5m €264.0m +8.1%
EBITDA*** €49.7m €49.0m +1.4%
Operating profit €17.4m €16.2m +7.4%
Profit before tax €14.6m €14.0m +4.3%
Basic earnings per share 8.30c 7.50c +10.7%
Interim dividend 5.11c 4.87c +5.0%
Net debt*** €211.7m €164.5m +28.7%
Net debt (pre-IFRS 16)*** €98.4m €116.6m (15.6%)
* HY 2024: Half Year up to 30 June 2024, ** HY 2023: Half Year up to 30 June
2023
*** Additional information in relation to these APMs is disclosed in the
Appendix
Volume movements
HY 2024 ’000 HY 2023 ’000 Change %
Cars 277.2 229.1 +21.0%
RoRo freight 384.8 348.2 +10.5%
Containers shipped (teu*) 154.7 142.3 +8.7%
Port lifts 165.8 152.5 +8.7%
*teu: twenty-foot equivalent units
The HY 2024 result is reported against the background of the continued return
towards pre-pandemic travel patterns and our continued growth on the Dover –
Calais route. The Group has continued to focus on strategic development and
has maintained a strong liquidity position.
Key highlights in HY 2024 include;
* Group revenue generated totalling €285.5 million, €21.5 million higher
than HY 2023.
* Operating profit generated was €17.4 million, compared to an operating
profit of €16.2 million in HY 2023.
* EBITDA generated of €49.7 million, €0.7 million increase on HY 2023.
* Gross cash balances of €51.2 million (31 December 2023: €46.8 million).
* Net debt at €211.7 million, €68.0 million higher than at the beginning
of the year owing primarily to the addition of the Oscar Wilde (ex Spirit of
Britain) on an initial charter with purchase obligation.
* The Directors have declared an interim dividend of 5.11 cent per share
(2023: 4.87 cent) payable on 4 October 2024 to shareholders on the register on
13 September 2024.
* On 15 May, Irish Ferries announced a space charter agreement with P&O
Ferries on the Dover – Calais route. This agreement will allow for greater
flexibility and choice for all of our customers.
* In May 2024, the Group chartered the Oscar Wilde cruise ferry (ex Spirit of
Britain) for an initial 24 month period with a purchase obligation at the end
of charter period. The vessel entered service in June on the Dover – Calais
route, replacing the Isle of Innisfree which is now operating on the Rosslare
– Pembroke route.
Commenting on the results, Chairman John B. McGuckian noted;
HY 2024 has been a period of further progress for the Group. The Ferries
Division has seen strong growth of 21.0% in passenger car and 10.5% in roll on
roll off freight carryings, as well as good growth in revenues and
profitability. In our Container and Terminal Division, containers shipped and
port lifts have both increased by 8.7% over the prior period and we expect
profitability to improve in the second half of the year. The above market
growth in our volumes reflects customer belief in our services and trust in
our brands and positions the Company well for future profitable growth.
Our position on the Dover – Calais route was strengthened this year with the
agreement of a space charter on this route with P&O Ferries, allowing for
space sharing on each parties’ vessels encompassing both freight and
passenger traffic. As previously announced, the initial focus was to start
introducing the space sharing for our freight customers over the summer
allowing them to benefit from the advantages of a turn up and go service. We
are now focused on introducing this space charter for our passenger traffic.
When fully implemented, the agreement will result in greater flexibility and
more choice for all our customers.
Further strengthening our position on the Dover – Calais route was the
introduction of the Oscar Wilde (previously Spirit of Britain). This vessel
entered service with Irish Ferries in June of this year and has enhanced both
our customer offering on the route and increased our capacity, The Oscar Wilde
was built by STX Europe in Finland in 2010, entering service on the Dover –
Calais route in 2011 with P&O Ferries. The ship has been acquired for a total
consideration of €89.4 million settled through a combination of a two-year
charter set at €20,000 per day and a purchase obligation for €74.8 million
at the end of the charter.
With the prospect of lower interest rates and future economic growth, ICG is
well placed to capitalise on the opportunities that this will present given
the extended footprint of our route structure and the strength of our balance
sheet.
Enquiries:
Eamonn Rothwell, Chief Executive Officer Tel: +353 1 607 5628 Email: info@icg.ie
David Ledwidge, Chief Financial Officer Tel: +353 1 607 5628 Email: info@icg.ie
Media enquiries:
Q4 Public Relations Tel: +353 1 475 1444 Email: press@q4pr.ie
Results
Financial Highlights
HY 2024 HY 2023 Change % FY 2023*
Revenue €285.5m €264.0m +8.1% €572.0m
EBITDA €49.7m €49.0m +1.4% €132.6m
Operating profit €17.4m €16.2m +7.4% €68.4m
* FY 2023 = Year End up to 31 December 2023
The Group recorded revenue of €285.5 million compared with €264.0 million
in HY 2023, an increase of 8.1%. Earnings before interest, tax, depreciation
and amortisation (EBITDA) were €49.7 million compared with €49.0 million
in HY 2023. Group fuel costs increased by €1.1 million (2.2%) to €50.1
million from €49.0 million. Operating profit was €17.4 million compared
with a €16.2 million in HY 2023. A profit before tax of €14.6 million is
reported compared with a profit before tax of €14.0 million in HY 2023.
There was a net finance charge of €2.8 million (2023: €2.2 million) which
includes net bank interest payable of €2.3 million (2023: €2.2 million),
lease interest €1.2 million (2023: €0.7 million) and net pension interest
income of €0.7 (2023: €0.7 million). The tax charge amounted to €0.9
million (2023: €1.1 million). Basic EPS was 8.3c compared with 7.5c in HY
2023. Adjusted Basic EPS amounted to 7.9c versus 7.1c for HY 2023.
Operational Review
Ferries Division
Financial Summary
HY 2024 HY 2023 Change % FY 2023
Revenue* €197.6m €179.8m +9.9% €412.3m
EBITDA €37.4m €33.3m +12.3% €106.9m
Operating profit €9.5m €5.3m +79.2% €52.1m
* Includes intersegment revenue of €14.7 million (HY 2023: €16.7 million)
(FY 2023: €33.2 million)
The division comprises Irish Ferries, a leading provider of passenger and
freight ferry services between Ireland / UK, Ireland / France and the UK /
France as well as the chartering of vessels.
Revenue in the division was €197.6 million (2023: €179.8 million) while
EBITDA was €37.4 million (2023: €33.3 million). Operating profit was
€9.5 million compared to €5.3 million in HY 2023. The performance of the
Ferries Division was improved on the prior period with volumes, revenue and
profitability all growing strongly.
Revenue - Total
HY 2024 HY 2023 Change % FY 2023
Passenger €77.8m €66.6m +16.8% €181.1m
Freight €99.4m €87.7m +13.3% €180.8m
Charter €20.4m €24.7m (17.4%) €48.7m
Other - €0.8m - €1.7m
Total €197.6m €179.8m +9.9% €412.3m
Volumes - Total
HY 2024 HY 2023 Change % FY 2023
Car volumes (‘000) 277.2 229.1 +21.0% 645.7
Passenger volumes (‘000) 1,331.4 1,091.9 +21.9% 2,781.7
RoRo freight volumes (‘000) 384.8 348.2 +10.5% 724.0
In HY 2024, total cars carried were 277,200, up 21.0% on the same period in HY
2023. Total passenger carryings were 1,331,400, an increase of 21.9% on HY
2023. Passenger revenues increased by 16.8% over HY 2023.
Freight carryings in HY 2024 were 384,800 units, an increase of 10.5% over HY
2023. Freight revenues increased by 13.3% compared with HY 2023.
The division owns eight container vessels, six of which are chartered intra
division and two chartered externally to third parties. Charter revenue
decreased by 17.4% over the prior period primarily due to a softer charter
market for these types of vessels. Charter revenue also includes earnings from
the long term receivable relating to the bareboat hire purchase contract
arising from the disposal of the GNV Allegra in a prior period.
Costs
HY 2024 HY 2023 Change % FY 2023
Depreciation and amortisation €27.9m €28.0m (0.4%) €54.8m
Employee benefits expense €10.8m €10.5m +2.9% €21.1m
Other operating costs €149.4m €136.0m +9.9% €284.3m
Total operating costs €188.1m €174.5m +7.8% €360.2m
Costs in the division increased by €13.6 million in HY 2024 compared to HY
2023. This increase was principally attributable to the operational costs
associated with higher activity and the cost associated with the EU Emission
Trading System (EU ETS) effective for the Group since 1 January 2024. Total
divisional fuel cost increased slightly to €42.7 million in HY 2024 from
€41.9 million in HY 2023 due to higher global fuel prices over the period.
Container and Terminal Division
Financial Highlights
HY 2024 HY 2023 Change % FY 2023
Revenue* €103.2m €101.5m +1.7% €194.1m
EBITDA €12.3m €15.7m (21.7%) €25.7m
Operating profit €7.9m €10.9m (27.5%) €16.3m
* Includes intersegment revenue of €0.6 million (HY 2023: €0.6 million)
(FY 2023: €1.2 million)
Operational Highlights
HY 2024 HY 2023 Change % FY 2023
Volumes ’000 ’000 ‘000
Containers shipped (teu) 154.7 142.3 +8.7% 275.5
Port lifts 165.8 152.5 +8.7% 312.4
The Container and Terminal Division includes the intermodal shipping line
Eucon as well as the division’s strategically located container terminals in
Dublin and Belfast.
Revenue in the division increased by 1.7% to €103.2 million (2023: €101.5
million), EBITDA decreased to €12.3 million (2023: €15.7 million), while
operating profit decreased to €7.9 million (2023: €10.9 million).
Total containers shipped by Eucon were up 8.7% at 154,700 teu (2023: 142,300
teu). While this increase in volumes is welcome and should result in a
stronger second half of the year, profitability has decreased due to lower
rates against the higher costs associated with the increased activity. Fuel
costs increased to €7.4 million from €7.1 million in HY 2023 due to an
increase in global fuel prices.
Containers handled at our container terminals in Dublin and Belfast were up
8.7% to 165,800 lifts (2023: 152,500 lifts). Dublin Ferryport Terminals’
activity was up 10.2%, and lifts at Belfast Container Terminal were up 6.4%.
Statement of Financial Position
A summary Statement of Financial Position as at 30 June 2024 is presented
below:
30 Jun 2024 30 Jun 2023 31 Dec 2023
€m €m €m
Property, plant and equipment and intangible assets 365.0 365.5 370.8
Right-of-use assets 114.1 47.8 36.1
Long term receivable - 9.0 7.3
Retirement benefit surplus 49.6 41.2 39.4
Other assets 99.3 96.1 72.9
Cash and bank balances 51.2 35.0 46.8
Total assets 679.2 594.6 573.3
Non-current borrowings 92.3 144.3 41.1
Non-current lease liabilities 102.5 33.2 25.4
Retirement benefit obligations 0.4 0.3 0.5
Other non-current liabilities 11.0 5.6 5.4
Current borrowings 57.3 7.3 112.4
Current lease liabilities 10.8 14.7 11.6
Other current liabilities 125.3 125.8 94.6
Total liabilities 399.6 331.2 291.0
Total equity 279.6 263.4 282.3
Total equity and liabilities 679.2 594.6 573.3
The analysis of key movements in the period since 31 December 2023 is set out
below.
The movement in right-of-use assets mainly relates to the addition of the
Oscar Wilde (ex Spirit of Britain) cruise ferry which is on a two year charter
with a purchase obligation. The movement in the long-term receivable relates
to the remaining deferred sales proceeds receivable under the hire purchase
sale agreement on the GNV Allegra which now falls due within the next 12
months.
The increase in other current assets is attributable to increased trade
debtors relating to higher freight revenues and the seasonal increase in
tourism debtors. The increase in other current liabilities mainly relates to
the seasonal increase in passenger deferred revenue balances.
The assumptions used to measure pension obligations were reviewed against the
background of market conditions as at 30 June 2024. This review resulted in a
change in discount and inflation rate assumptions while other assumptions were
retained at 31 December 2023 levels. A net actuarial gain of €9.3 million
arose in HY 2024, driven primarily by a fall in the value of the defined
benefit obligations.
Shareholders’ equity decreased to €279.6 million from €282.3 million
over the period. The movements primarily comprised of the profit for the
financial period of €13.7 million, net actuarial gains of €9.3 million
arising on retirement benefit schemes less payment of the 2023 final dividend
of €16.3 million and share buybacks totalling €9.0 million.
Cash Flow and Financing
A summary of cash flows in the half year to 30 June 2024 is presented below:
HY 2024 HY 2023 FY 2023
€m €m €m
Operating profit 17.4 16.2 68.4
Depreciation and amortisation 32.3 32.8 64.2
EBITDA* 49.7 49.0 132.6
Working capital movements 10.8 23.2 1.7
Retirement benefit scheme movements 0.1 0.2 0.6
Share-based payment expense 1.8 1.6 2.8
Other movements 4.7 (0.5) (1.0)
Cash generated from operations 67.1 73.5 136.7
Interest paid (4.4) (2.8) (5.9)
Tax paid (0.8) (0.9) (2.2)
Capital expenditure excluding strategic capital expenditure (14.1) (17.2) (21.5)
Free cash flow before strategic capital expenditure* 47.8 52.6 107.1
Strategic capital expenditure (6.3) (13.6) (21.8)
Free cash flow after strategic capital expenditure* 41.5 39.0 85.3
Proceeds on disposal of property, plant and equipment 1.5 1.5 3.1
Share issue 0.4 0.1 0.4
Settlement of employee equity plans through market purchases (3.7) (3.1) (3.1)
Dividends paid (16.3) (16.8) (24.4)
Share buyback (9.0) - (21.4)
Net cash flows 14.4 20.7 39.9
Opening net debt (143.7) (171.1) (171.1)
Lease liability non-cash movements (82.9) (14.3) (12.5)
Translation / other 0.5 0.2 -
Closing net debt (211.7) (164.5) (143.7)
*Additional information in relation to these Alternative Performance Measures
(APMs) is disclosed in the Appendix.
The Group funds its activities from a combination of cash generated from
day-to-day operating activities and borrowings, including revolving credit
facilities, term loans, loan notes and leasing arrangements. Net debt at 30
June 2024 increased to €211.7 million from €143.7 million at 31 December
2023.
Cash generated from operations in the period amounted to €67.1 million,
which was €6.4 million less than the prior period. Total capital expenditure
including intangibles and lease inception costs amounted to €20.4 million.
Overall, there were net cash inflows of €14.4 million which were offset by
lease liability movements which resulted in the net debt at 30 June 2024
increasing to €211.7 million.
An analysis of the movements in net debt are set out in the table below.
Net debt
Cash €m Origination Fees €m Bank Loans & Loan Notes €m Lease Liabilities €m Net Debt €m
At 31 December 2023 46.8 0.3 (153.8) (37.0) (143.7)
Lease liability non-cash movements - - - (82.9) (82.9)
Cash flows 4.4 - 3.3 6.7 14.4
Translation / other - 0.6 - (0.1) 0.5
At 30 June 2024 51.2 0.9 (150.5) (113.3) (211.7)
The borrowing facilities available to the Group at 30 June 2024 were as
follows;
Borrowing Facilities
Facility Committed Committed facilities drawn Committed facilities undrawn
€m €m €m €m
Revolving credit 150.0 100.0 55.5 44.5
Private placement loan notes 256.9 50.0 50.0 -
Bank loans 45.0 45.0 45.0 -
Lease liabilities 113.3 113.3 113.3 -
Overdraft and other 15.4 15.4 - 15.4
580.6 323.7 263.8 59.9
At 30 June 2024, the Group had total lending facilities of €580.6 million
available, of which €323.7 million were committed facilities. €263.8
million of the committed facilities were drawn. In addition to the committed
lines of credit, the Group had arranged uncommitted facilities of €256.9
million with utilisation dates expiring between two and five years.
Dividend
The Company paid a final dividend in respect of financial year 2023 of 9.93
cent per ordinary share on 7 June 2024 to shareholders on the register at the
close of business on 17 May 2024. The total amount paid was €16.3 million.
The Directors have declared an interim dividend of 5.11 cent per share (2023:
4.87 cent) payable on 4 October 2024 to shareholders on the register on 13
September 2024. The estimated amount payable will be €8.4 million.
Fuel
HY 2024 HY 2023 Change % FY 2023
Fuel costs €50.1m €49.0m +2.2% €106.8m
Group fuel costs in the first half of 2024 amounted to €50.1 million (2023:
€49.0 million). The movement in fuel costs was due to an increase in average
global fuel prices versus the same period last year.
The Group has in place fuel surcharge mechanisms for freight customers, which
mitigate the effects of euro movements in fuel costs. The Group has invested
in exhaust gas cleaning systems (EGCS) on three of its cruise ferries and five
of its container vessels, all of which are operated on Group services. EGCS
allow the consumption of lower cost fuels while meeting all current emission
regulations. Other vessels are required to consume higher cost fuels to meet
the same regulations.
While the Group complies with all current fuel and emissions regulations, the
Group notes new regulations being considered at both the EU and global level
in response to climate change concerns. While the Company acknowledges the
role it must play in protecting the environment, the level of surcharges may
have to be adjusted to pass any increased compliance costs through the supply
chain. Effective from 1 January 2024 the Group’s shipping operations are in
scope of the EU Emission Trading System (EU ETS). EU ETS requires the
surrender of carbon credits (EU Allowances or “EUAs”) to the EU based on
its verified carbon emissions in the period. In the first half of 2024 the
estimated cost of these surrender obligations amounted to €5.1 million which
were substantially recovered through additional surcharges.
In the reporting period, the Group did not engage in financial derivative
trading to hedge its fuel costs.
Strategic Developments
Fleet
On 15 May 2024, ICG announced the acquisition of the Oscar Wilde (ex Spirit of
Britain) through a bareboat charter agreement with a purchase obligation. The
vessel was delivered to the Group on 17 May and following commissioning works
entered service on the Dover – Calais route on 19 June.
The Oscar Wilde was built by STX Europe in Finland in 2010, and previously
served the Dover – Calais route in the service of P&O Ferries.
The total lease consideration was €89.4 million to be settled through a
combination of a two-year bareboat charter set at €20,000 per day and a
purchase obligation for €74.8 million at the end of the charter.
Following the commissioning of the Oscar Wilde, the Isle of Innisfree was
transferred to the Rosslare – Pembroke route, commencing services on 6 July
following refit. The existing chartered vessel Oscar Wilde, previously serving
the Rosslare – Pembroke route, was renamed James Joyce and commenced
services on the Dublin – Holyhead route on 7 July. This allowed the return
of the chartered vessel Norbay to its owners.
The fleet changes have enhanced our customer offering and increased our
capacity for both passenger and freight customers on the Dover – Calais and
Irish Sea routes.
In the Container and Terminal Division, the core vessel fleet servicing routes
between the island of Ireland to Antwerp and Rotterdam increased from five to
six vessels during March. The additional vessel Ranger was already owned by
the Group and previously chartered externally.
Dover – Calais space sharing agreement
On 15 May 2024, ICG announced that its subsidiary Irish Ferries has signed a
space charter agreement with P&O Ferries on the Dover – Calais route. This
agreement encompasses both freight and passenger space sharing on both
parties’ vessels.
This arrangement will result in greater flexibility and more choice for both
companies’ customers. While the space charter agreement means that capacity
is shared so that customers will have more frequent sailing options, all
commercial activities remain entirely under the control of each operator.
The arrangements have come into effect for our freight customers during July,
with our freight customers benefitting from the advantages of this service.
This will now be followed on a phased basis for our passenger business.
Seafarers’ legislation and proposed voluntary charters
A French Decree mandating minimum wages and regulated roster patterns for crew
aboard vessels serving routes on the English Channel has been effective from
29 June 2024. While the minimum pay regulation will have a negligible effect,
the regulated roster patterns are more restrictive than those previously
operated by certain of the crew on Irish Ferries ships and have negatively
impinged on operational efficiency. The majority of crew employed on Irish
Ferries vessels are EU nationals. Irish Ferries contends that this French
Decree is protectionist and may conflict with EU legislation, and cuts across
various freedoms established in the Treaty of the Functioning of the European
Union (TFEU).
The UK has also proposed a minimum wage requirement in territorial waters and
a voluntary seafarers charter with additional local employment protection
objectives. We await further progression on this legislation but again believe
that the minimum wage legislation will have minimal cost implications for
Irish Ferries.
Sustainability
Maritime Operations
The Group is currently navigating a period of significant regulatory change in
environmental matters, which will have a substantial impact on the Group’s
operations and costs in the coming years. These changes originate from the EU,
UK and the International Maritime Organization (IMO). The primary focus of
these regulations is to increase the costs associated with carbon emissions.
From 1 January 2024, shipping has come within the scope of the EU ETS, the
first of these new EU regulations to take effect. The EU ETS will phase in
over three years, covering 40% of emissions in 2024, 70% in 2025, and reaching
full scope by 2026. In the UK, a similar emissions trading scheme (UK ETS) is
still being finalised, with an expected earliest implementation during 2026.
As a result, initially, only half of the emissions for voyages between the EU
and the UK currently fall under the scope of these regulations, due to the
UK's later timeline.
The future costs associated with these regulations remain uncertain, as they
will depend on the availability and demand for EUAs, which are set by the EU.
To manage this anticipated increase in costs, the Group has established
transparent ETS surcharge mechanisms, allowing the Group to pass on these
additional costs.
From 2025, alongside the EU ETS, the Group will also be subject to the FuelEU
regulation, which aims to further penalise the use of carbon-intensive fuels.
The Group continues to actively explore ways to reduce emissions through
various projects on its vessels. However, the limited availability of
alternative fuels at competitive prices remains a significant challenge for
the industry. ICG strongly encourages the EU and national governments to
reinvest the substantial revenues generated from these carbon taxes into
research and development, with the aim of developing alternative fuels and
technologies that are cost-effective for the maritime industry.
Land Based Operations
Following the successful completion of last year's terminal electrification
project, 80% of the Group‘s heavy terminal equipment is now electrified and
powered by renewable energy. This marks a significant milestone towards
achieving our Net Zero 2030 target for terminal operations.
The Group’s focus has now shifted to its mobile light plant and machinery,
which remain the other major contributors to emissions in the terminal
operations. ICG are actively investigating the most efficient methods to
reduce these emissions, including trialling new technologies from our
suppliers. A biofuel trial for the Group’s mobile plant is planned for the
final quarter of 2024. These initiatives will be crucial steps toward
achieving the Group’s Net Zero 2030 goal.
Reporting Developments
ICG operations will be in scope of the EU Corporate Sustainability Reporting
Directive (CSRD) from 1 January 2025. The Group are currently preparing to
meet our obligations under the CSRD requirements and our first report under
CSRD will be included within our 2025 Annual Report.
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
other than in respect of remuneration paid to key management personnel.
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 on an ongoing basis.
The principal risks and uncertainties faced by the Group as set out in detail
on pages 65 to 69 of the 2023 Annual Report are categorised as: commercial and
market, economic and political, business continuity, health and safety,
operational compliance, environmental protection, human capital, information
security and cyber threats, financial loss, fraud, volatility, retirement
benefit scheme and financial compliance.
These risks areas remain the most likely risks to affect the Group during the
second half of the financial year and the Group will actively manage these and
all other risks through its risk management structure.
Going Concern
After making enquiries, the Directors have reasonable expectation that the
Group has adequate resources to continue in operational existence for a period
of at least 12 months. In forming this view the Directors have considered the
future cash requirements of the Group’s business in the context of the
economic environment over the next 12 months, the principal risks and
uncertainties facing the Group, the Group’s budget plan and the medium term
strategy of the Group, including capital investment plans. The future cash
requirements have been compared to bank facilities which are available or
expected to be available to the Group on normal commercial terms. On this
basis the Directors continue to adopt the going concern basis in preparing
this half-year financial report.
Events after the Reporting Period
There have been no material events affecting the Company since 30 June 2024.
Current Trading and Outlook
Trading volumes in the period 1 July to 24 August 2024 are as follows:
H2 2024 Trading to date
1/7/24 – 24/8/24 1/7/23 – 24/8/23 Change %
Volumes ’000 ’000
Cars 215.3 205.2 +4.9%
RoRo freight units 113.0 109.1 +3.6%
Containers shipped (teu) 48.9 40.3 +21.3%
Port lifts 53.4 45.4 +17.6%
Cumulatively to 24 August 2024, trading volumes are:
FY 2024 Trading to date
1/1/24 – 24/8/24 1/1/23 – 24/8/23 Change %
Volumes ’000 ’000
Cars 492.5 434.3 +13.4%
RoRo freight units 497.8 457.3 +8.9%
Containers shipped (teu) 203.6 182.6 +11.5%
Port lifts 219.2 197.9 +10.8%
The trading performance of the Group across all divisions has remained strong
year to date. The Ferries Division has seen continued growth in both car and
RoRo freight units. After a challenging year in 2023 and a difficult first
half of 2024, the performance of the Container and Terminal Division has begun
to recover.
The Ferries Division has enjoyed exceptional levels of growth in both cars and
freight primarily due to the benefit of a full three ship operation on the
Dover – Calais route, with year to date volume increases of 13.4% for cars
and 8.9% for RoRo freight units. However, volume growth in the Ferries
Division is becoming more normalised as the comparative in the prior year
includes a full Dover – Calais operation. Volume growth in H2 while still
strong is at more normalised levels of 4.9% for cars and 3.6% for freight.
The Group is confident the space charter agreement on our Dover – Calais
route will materially improve our position on the route and customer offering.
This will provide a strong base for growth in the second half of the year and
beyond. In addition to this, the introduction of the Oscar Wilde gives us the
ability to continue to grow.
Container volumes continue to recover strongly. Year to date container volumes
increased by 11.5%. This level of growth has increased in the second half of
the year, with containers shipped growing at 21.3%. Both terminals continue to
perform well, in particular the Dublin Ferryport Terminal which is benefiting
from a new route into Continental Europe. Overall port lifts year to date are
up 10.8%, with performance improving in the second half of the year to a
growth rate of 17.6%. The Group expect rates in this division to start to
recover in the second half of the year, which should result in recovering
levels of profitability for the division.
Auditor Review
This half-yearly financial report has not been audited or reviewed by the
auditors of the Group.
Forward-Looking Statements
This report contains certain forward-looking statements. 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. These forward-looking
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 is available on the Group’s website
www.icg.ie.
John B. McGuckian
Chairman
28 August 2024
RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Half-Yearly Financial Report
in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007
(as amended), the related Transparency Rules of the Central Bank of Ireland
and IAS 34, ‘Interim Financial Reporting’ as adopted by the European
Union.
Each of the Directors confirm that to the best of their knowledge and belief:
* the Group Condensed Financial Statements for the half year ended 30 June
2024 have been prepared in accordance with the International Accounting
Standard applicable to interim financial reporting (IAS 34 Interim Financial
Reporting) adopted pursuant to the procedure provided for under Article 6 of
the Regulation (EC) No. 1606/2002 of the European Parliament and the Council
of 19 July 2002;
* 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 2024, and a description of the principal risks and uncertainties for the
remaining six months; and
* 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 that have materially affected the financial position or the
performance of the Group during that period, and any changes in the related
parties transactions described in the last Annual Report that could have a
material effect on the financial position or performance of the Group in the
first six months of the current financial year.
On behalf of the Board
Eamonn Rothwell Director David Ledwidge Director
28 August 2024
CONDENSED CONSOLIDATED
INCOME STATEMENT
FOR THE HALF YEAR ENDED 30 JUNE 2024
Notes HY 2024 HY 2023 FY 2023
Unaudited Unaudited Audited
€m €m €m
Revenue 4 285.5 264.0 572.0
Depreciation and amortisation (32.3) (32.8) (64.2)
Employee benefits expense (13.5) (13.0) (26.2)
Other operating expenses (222.3) (202.0) (413.2)
Operating profit 17.4 16.2 68.4
Finance income 0.8 0.7 1.4
Finance costs (3.6) (2.9) (6.5)
Profit before taxation 14.6 14.0 63.3
Income tax expense (0.9) (1.1) (1.7)
Profit for the financial period: all attributable to equity holders of the parent 4 13.7 12.9 61.6
Earnings per ordinary share – expressed in cent per share
Basic 6 8.3c 7.5c 36.2c
Diluted 6 8.2c 7.5c 35.7c
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 30 JUNE 2024
HY 2024 HY 2023 FY 2023
Unaudited Unaudited Audited
Notes €m €m €m
Profit for the financial period 13.7 12.9 61.6
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 1.3 1.7 1.1
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain on defined benefit pension schemes 13 9.3 6.8 4.9
Deferred tax on defined benefit pension schemes (0.2) (0.6) (0.4)
Other comprehensive income for the financial period 10.4 7.9 5.6
Total comprehensive income for the financial period: all attributable to equity holders of the parent 24.1 20.8 67.2
CONDENSED CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2024
30 Jun 24 30 Jun 23 31 Dec 23
Unaudited Unaudited Audited
Notes €m €m €m
Assets
Non-current assets
Property, plant and equipment 7 362.9 363.5 368.7
Right-of-use assets 8 114.1 47.8 36.1
Intangible assets 2.1 2.0 2.1
Long term receivable 9 - 9.0 7.3
Retirement benefit surplus 13 49.6 41.2 39.4
Deferred tax asset 0.2 0.1 0.3
528.9 463.6 453.9
Current assets
Inventories 8.0 4.3 4.0
Trade and other receivables 91.1 91.7 68.6
Cash and cash equivalents 10 51.2 35.0 46.8
150.3 131.0 119.4
Total assets 679.2 594.6 573.3
Equity and liabilities
Equity
Share capital 10.7 11.1 10.8
Share premium 21.3 20.6 20.9
Other reserves (5.6) (7.0) (6.1)
Retained earnings 253.2 238.7 256.7
Equity attributable to equity holders 279.6 263.4 282.3
Non-current liabilities
Borrowings 10 92.3 144.3 41.1
Lease liabilities 10 102.5 33.2 25.4
Deferred tax liabilities 5.0 4.6 4.5
Provisions 6.0 1.0 0.9
Retirement benefit obligations 13 0.4 0.3 0.5
206.2 183.4 72.4
Current liabilities
Borrowings 10 57.3 7.3 112.4
Lease liabilities 10 10.8 14.7 11.6
Trade and other payables 124.8 124.5 93.7
Provisions 0.5 1.3 0.9
193.4 147.8 218.6
Total liabilities 399.6 331.2 291.0
Total equity and liabilities 679.2 594.6 573.3
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 30 JUNE 2024 (UNAUDITED)
Share
Share Share Capital Options Translation Retained
Capital Premium Reserve Reserve Reserve Earnings Total
€m €m €m €m €m €m €m
Balance at 1 January 2024 10.8 20.9 8.9 7.0 (22.0) 256.7 282.3
Profit for the financial period - - - - - 13.7 13.7
Other comprehensive income - - - - 1.3 9.1 10.4
Total comprehensive income for the financial period - - - - 1.3 22.8 24.1
Employee share-based payments expense - - - 1.8 - - 1.8
Share issue - 0.4 - - - - 0.4
Dividends - - - - - (16.3) (16.3)
Share buyback (0.1) - 0.1 - - (9.0) (9.0)
Settlement of share options through market purchase - - - - - (3.7) (3.7)
Transfer to retained earnings on exercise of options - - - (2.7) - 2.7 -
Total movements in the financial period (0.1) 0.4 0.1 (0.9) 1.3 (3.5) (2.7)
Balance at 30 June 2024 10.7 21.3 9.0 6.1 (20.7) 253.2 279.6
FOR THE HALF YEAR ENDED 30 JUNE 2023 (UNAUDITED)
Share
Share Share Capital Options Translation Retained
Capital Premium Reserve Reserve Reserve Earnings Total
€m €m €m €m €m €m €m
Balance at 1 January 2023 11.1 20.5 8.6 6.3 (23.1) 237.4 260.8
Profit for the financial period - - - - - 12.9 12.9
Other comprehensive income - - - - 1.7 6.2 7.9
Total comprehensive income for the financial period - - - - 1.7 19.1 20.8
Employee share-based payments expense - - - 1.6 - - 1.6
Share issue - 0.1 - - - - 0.1
Dividends - - - - - (16.8) (16.8)
Settlement of share options through market purchase - - - - - (3.1) (3.1)
Transfer to retained earnings on exercise of options - - - (2.1) - 2.1 -
Total movements in the financial period - 0.1 - (0.5) 1.7 1.3 2.6
Balance at 30 June 2023 11.1 20.6 8.6 5.8 (21.4) 238.7 263.4
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 (AUDITED)
Share
Share Share Capital Options Translation Retained
Capital Premium Reserve Reserve Reserve Earnings Total
€m €m €m €m €m €m €m
Balance at 1 January 2023 11.1 20.5 8.6 6.3 (23.1) 237.4 260.8
Profit for the financial period - - - - - 61.6 61.6
Other comprehensive income - - - - 1.1 4.5 5.6
Total comprehensive income for the financial period - - - - 1.1 66.1 67.2
Employee share-based payments expense - - - 2.8 - - 2.8
Share issue - 0.4 - - - - 0.4
Dividends - - - - - (24.4) (24.4)
Share buyback (0.3) - 0.3 - - (21.4) (21.4)
Settlement of employee equity plans through market purchase - - - - - (3.1) (3.1)
Transfer to retained earnings on exercise of options - - - (2.1) - 2.1 -
Total movements in the financial period (0.3) 0.4 0.3 0.7 1.1 19.3 21.5
Balance at 31 December 2023 10.8 20.9 8.9 7.0 (22.0) 256.7 282.3
CONDENSED CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE HALF YEAR ENDED 30 JUNE 2024
HY 2024 HY 2023 FY 2023
Unaudited Unaudited Audited
Notes €m €m €m
Profit for the financial year 13.7 12.9 61.6
Adjustments for:
Finance costs (net) 2.8 2.2 5.1
Income tax expense 0.9 1.1 1.7
Retirement benefit scheme movements 14 0.1 0.2 0.6
Depreciation of property, plant and equipment 24.4 23.3 45.1
Amortisation of intangible assets 0.2 0.2 0.4
Depreciation of right-of-use assets 7.7 9.3 18.7
Share-based payment expense 1.8 1.6 2.8
Increase / (decrease) in provisions 4.7 (0.5) (1.0)
Working capital movements 14 10.8 23.2 1.7
Cash generated from operations 67.1 73.5 136.7
Income taxes paid (0.8) (0.9) (2.2)
Interest paid (4.4) (2.8) (5.9)
Net cash inflow from operating activities 61.9 69.8 128.6
Cash flow from investing activities
Proceeds on disposal of property, plant and equipment 1.5 1.5 3.1
Purchases of property, plant and equipment and intangible assets 14 (17.8) (29.6) (41.9)
Lease inception costs (2.6) (1.2) (1.4)
Net cash outflow from investing activities (18.9) (29.3) (40.2)
Cash flow from financing activities
Share buyback (9.0) - (21.4)
Dividends 5 (16.3) (16.8) (24.4)
Repayment of lease liabilities 14 (6.7) (9.0) (18.0)
Proceeds on issue of ordinary share capital 0.4 0.1 0.4
Repayments of bank loans (15.8) (16.2) (40.0)
Drawdown of bank loans 12.5 - 25.6
Settlement of employee equity plans through market purchases (3.7) (3.1) (3.1)
Net cash outflow from financing activities (38.6) (45.0) (80.9)
Net increase / (decrease) in cash and cash equivalents 4.4 (4.5) 7.5
Cash and cash equivalents at the beginning of the period 46.8 39.0 39.0
Effect of foreign exchange rate changes - 0.5 0.3
Cash and cash equivalents at the end of the period 10 51.2 35.0 46.8
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 30 JUNE 2024
1. General information
The Group Condensed Financial Statements are considered non-statutory
financial statements for the purposes of the Companies Act 2014 and in
compliance with section 340(4) of that Act we state that:
* the Group Condensed Financial Statements for the half year ended 30 June
2024 have been prepared to meet our obligation to do so under the Transparency
(Directive 2004/109/EC) Regulations 2007 (as amended);
* the Group Condensed Financial Statements for the half year ended 30 June
2024 do not constitute the statutory financial statements of the Group;
* the figures disclosed relating to 31 December 2023 have been derived from
the statutory financial statements for the financial year ended 31 December
2023 which were audited, received an unqualified audit report and have been
filed with the Registrar of Companies; and
* the interim figures included in the Group Condensed Financial Statements for
the half year ended 30 June 2024 and the comparative amounts for the half year
ended 30 June 2023 have been neither audited nor reviewed by the auditors of
the Group.
2. Accounting policies
The Group Condensed Financial Statements for the six months ended 30 June 2024
have been prepared in accordance with the Transparency (Directive 2004/109/EC)
Regulations 2007 (as amended), the Central Bank (Investment Market Conduct)
Rules 2019 and with IAS 34 ‘Interim Financial Reporting’ as adopted by the
European Union.
The accounting policies and methods of computation applied in preparing these
Group Condensed Financial Statements are consistent with those set out in the
Group Annual Report for the financial year ended 31 December 2023, which is
available at www.icg.ie.
Amendments to accounting standards IAS 1, IFRS 17, IAS 8, IAS 12 and IFRS 16
became effective for the Group commencing 1 January 2024. The adoption of
these amendments did not have a material impact on these financial statements.
Information about the impact of new accounting standards that are not
effective for the current reporting period are set out on page 129 of the
Group's Annual Report for the year ended 31 December 2023.
The Group has been in scope of the EU Emissions Trading System (EU ETS) since
1 January 2024 in respect of its shipping operations. This will require the
Group to surrender carbon credits (EUAs) to the EU based on its verified
carbon emissions in the period. These must be surrendered by September 2025.
This has created a new material obligation on the Statement of Financial
Position which is reported as a provision of €5.1 million within non-current
liabilities on the Condensed Statement of Financial Position as at 30 June
2024.
Surrender obligations at 30 June 2024 have been based on estimated carbon
emissions and those amounts respresented by purchased EUA’s have been valued
at cost, amounts due to be delivered by charterers at a future date were
valued at the 30 June 2024 spot price with the balance valued at the rates
under forward contracts concluded by the Group as at 30 June 2024. Purchased
EUA’s held by the Group at 30 June 2024 have been included in inventories at
cost.
3. Critical Accounting Estimates and Judgements
In the application of the Group’s accounting policies, the Directors are
required to make judgements, estimates and assumptions about the carrying
amounts of assets and liabilities. In preparing these Condensed Financial
Statements, the approach to the making of these judgements, estimates and
assumptions is consistent with that used in the Group Annual Report for the
financial year ended 31 December 2023. Key sources of estimation uncertainty
relate to post-employment benefits and assessment of useful lives for
property, plant and equipment. Critical accounting judgements are made in
respect of identifying indications of impairment and adoption of the going
concern assumption.
In relation to the valuation of retirement benefit obligations set out in note
13 to these Condensed Consolidated Financial Statements there have been
changes made to the discount rate and inflation assumptions compared to those
used at 31 December 2023 which have resulted in a material reduction in the
valuation of retirement benefit obligations reflected through an actuarial
credit which together with experience adjustments on both scheme obligations
and assets resulted in a €9.3 million actuarial gain being recorded in the
Statement of Comprehensive Income. Other than noted in the foregoing, there
have been no material changes to key estimates that had previously been made
in the prior year financial statements to 31 December 2023.
Impairment
Ferry Fleet
At 31 December 2023, the Group reported that it had performed an assessment of
possible indicators of impairment and concluded that there were no indicators
of impairment at 31 December 2023. Group management performed a further
assessment at 30 June 2024 with a focus on the economic performance of the
ferry vessel fleet, technological developments, new rules and regulations
including environmental regulation, movements in second-hand values and
charter rates, shipbuilding costs and Group carrying value versus market
capitalisation. Management also reviewed its discounted cashflow model
prepared at 31 December 2023 and was satisfied that there were no material
changes required to the assumptions and that this model strongly supported the
carrying value of the ferry fleet at 30 June 2024. Management also noted that
the cost of EU ETS effective since 1 January was being recovered through the
introduction of additional surcharges. Following this review, it was concluded
that there were no indicators of impairment relating to the ferry fleet at 30
June 2024.
Container Vessel Fleet
At 31 December 2023, the Group reported that a softening in market charter
rates and consequent uncertainty around renewal rates amounted to an indicator
of impairment. A recoverability assessment was subsequently performed
including consideration of fair value less cost of disposal and a value-in-use
assessment of each vessel. The Group concluded that the recoverability
assessment supported the carrying value of the Group’s container vessel
fleet at 31 December 2023.
Management undertook an assessment of possible indicators of impairment as at
30 June 2024 and noted that the 2024 charter rates achieved to date were lower
than assumed in the 31 December 2023 value-in-use calculations. This was
assessed as an indicator of impairment. Management reviewed the previous
value-in-use model updating for current charter rates with future renewal
rates based on the economic long-term charter rate on the estimated cost of
building comparable vessels, discounted for age and technological efficiencies
versus the vessels in the Group fleet. Following this exercise, it was
concluded that the value-in-use exercise supported the carrying value of the
Group’s container fleet and that no provision for impairment was required at
30 June 2024.
Going Concern
The Company had previously reported in its 2023 Annual Report that the
Directors had considered a number of trading scenarios. The base scenario had
assumed a moderate level of growth across the Group’s businesses whereas the
downside scenario had assumed lower levels of activity related to
macro-economic uncertainty around growth rates in the economies in which we
provide services together with inflationary pressures. The Group has extended
the outlook period for these projections to August 2025 based on economic
conditions existing at 30 June 2024, the principal risks and uncertainties
facing the Group, the Group’s budget plan and the medium term strategy of
the Group, including capital investment plans. These projections indicate that
the Group expects to generate sufficient cash from operations to enable it to
retain sufficient liquidity to operate and meet its financial obligations for
at least the period up to August 2025. The Directors therefore considered it
appropriate to continue to adopt the going concern assumption in the
preparation of these Condensed Financial Statements.
4. Segmental information
The Executive Board is deemed the chief operating decision maker within the
Group. For management purposes, the Group is currently organised into two
operating segments; Ferries and Container and Terminal. These segments are the
basis on which the Group reports internally and are the only two revenue
generating segments of the Group.
The Ferries segment derives its revenue from the operation of combined RoRo
passenger ferries and the chartering of vessels. The Container and Terminal
segment derives its revenue from the provision of door-to-door and feeder LoLo
freight services, stevedoring and other related terminal services.
Segment information about the Group’s operations is presented below.
i) Revenue Analysis
By business segment:
HY 2024 HY 2023 FY 2023
€m €m €m
Ferries
Passenger 77.8 66.6 181.1
Freight 99.4 87.7 180.8
Charter 20.4 24.7 48.7
Other - 0.8 1.7
197.6 179.8 412.3
Container and Terminal
Freight 103.2 101.5 194.1
Inter-segment revenue (15.3) (17.3) (34.4)
Total 285.5 264.0 572.0
Revenues increased in HY 2024 over HY 2023 primarily due to an increase in
volumes, partially offset by lower average yields and traffic mix.
As revenues are recognised over short time periods of no more than days, a key
determinant to categorising revenues is whether they principally arise from a
business to customer (passenger contracts) or a business to business
relationship (freight and charter contracts) as this impacts directly on the
uncertainty of cash flows. On this basis, revenue by business segment is a
reasonable approximation of revenue disaggregation.
By geographic origin of booking:
HY 2024 HY 2023 FY 2023
€m €m €m
Ireland 92.3 90.0 186.6
United Kingdom 76.3 59.1 154.2
Netherlands 50.7 48.6 96.1
Belgium 18.7 20.1 38.0
France 13.6 10.3 23.5
Poland 7.7 7.3 16.0
Germany 3.0 4.1 9.3
Austria 4.6 4.9 9.0
Other 18.6 19.6 39.3
285.5 264.0 572.0
No single external customer in the current or prior financial periods amounted
to 10 per cent of the Group’s revenues.
ii) Profit for the financial year
Ferries Container and Terminal Group Total
HY 2024 €m HY 2023 €m FY 2023 €m HY 2024 €m HY 2023 €m FY 2023 €m HY 2024 €m HY 2023 €m FY 2023 €m
Operating profit 9.5 5.3 52.1 7.9 10.9 16.3 17.4 16.2 68.4
Finance income 0.8 0.7 1.4 - - - 0.8 0.7 1.4
Finance costs (3.0) (2.2) (5.1) (0.6) (0.7) (1.4) (3.6) (2.9) (6.5)
Profit before tax 7.3 3.8 48.4 7.3 10.2 14.9 14.6 14.0 63.3
Income tax expense (0.4) (0.3) (0.9) (0.5) (0.8) (0.8) (0.9) (1.1) (1.7)
Profit for the financial year 6.9 3.5 47.5 6.8 9.4 14.1 13.7 12.9 61.6
iii) Statement of Financial Position
Ferries Container and Terminal Group Total
30 Jun 24 €m 30 Jun 23 €m 31 Dec 23 €m 30 Jun 24 €m 30 Jun 23 €m 31 Dec 23 €m 30 Jun 24 €m 30 Jun 23 €m 31 Dec 23 €m
Assets
Segment assets 515.1 447.8 420.3 112.9 111.8 106.2 628.0 559.6 526.5
Cash and cash equivalents 48.8 31.9 39.5 2.4 3.1 7.3 51.2 35.0 46.8
Consolidated total assets 563.9 479.7 459.8 115.3 114.9 113.5 679.2 594.6 573.3
Liabilities
Segment liabilities 101.4 98.8 66.2 35.3 32.9 34.4 136.7 131.7 100.6
Borrowings and lease liabilities 233.3 156.6 158.6 29.6 42.9 31.8 262.9 199.5 190.4
Consolidated total liabilities 334.7 255.4 224.8 64.9 75.8 66.2 399.6 331.2 291.0
iv) Seasonality
Group revenue and profit before tax is weighted towards the second half of the
year principally due to passenger revenue patterns in the Ferries Division
whereas operating costs are more evenly distributed over the year.
5. Dividends paid
HY 2024 HY 2023 FY 2023
€m €m €m
Interim dividend (RE current financial year) - - 8.3
Final dividend (RE prior financial year) 16.3 16.8 16.1
Total dividends paid in period 16.3 16.8 24.4
The Company paid a final dividend in respect of financial year 2023 of 9.93
cent per ordinary share on 7 June 2024 to shareholders on the register at the
close of business on 17 May 2024. The total amount paid was €16.3 million.
The Directors have declared an interim dividend of 5.11 cent per share (2023:
4.87 cent) payable on 4 October 2024 to shareholders on the register on 13
September 2024.
6. Earnings per share
HY 2024 HY 2023 FY 2023
Number of shares ‘000 ‘000 ‘000
Shares in issue at the beginning of the year 166,217 170,823 170,823
Effect of shares issued during the year 89 41 70
Effect of share buybacks and cancellation in the year (1,187) - (960)
Weighted average number of ordinary shares for the purpose of basic earnings per share 165,119 170,864 169,933
Dilutive effect of employee equity plans where vesting conditions not met 2,637 2,261 2,645
Weighted average number of ordinary shares for the purposes of diluted earnings per share 167,756 173,125 172,578
The denominator for the purposes of calculating both basic and diluted
earnings per share has been adjusted to reflect shares issued during the
period and excludes treasury shares.
Profit attributable to ordinary shareholders
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:
HY 2024 HY 2023 FY 2023
Earnings €m €m €m
Earnings for the purpose of basic and diluted earnings per share – Profit for the financial period attributable to equity holders of the parent 13.7 12.9 61.6
Effect of net interest income on defined benefit pension schemes (0.7) (0.7) (1.3)
Earnings for the purpose of adjusted earnings per share 13.0 12.2 60.3
Cent Cent Cent
Basic earnings per share 8.3 7.5 36.2
Diluted earnings per share 8.2 7.5 35.7
Adjusted basic earnings per share 7.9 7.1 35.5
Adjusted diluted earnings per share 7.7 7.0 34.9
7. Property, plant and equipment
Assets under construction Vessels Plant, Equipment and Vehicles Land and Buildings Total
€m €m €m €m €m
Cost
At 31 December 2023 - 554.5 79.0 29.9 663.4
Additions 1.3 15.3 0.8 0.3 17.7
Disposals - (10.5) (0.8) - (11.3)
Reclassification - - - - -
Currency adjustment - 1.4 0.1 - 1.5
At 30 June 2024 1.3 560.7 79.1 30.2 671.3
Accumulated depreciation
At 31 December 2023 - 238.8 44.4 11.5 294.7
Charge for period - 22.1 2.0 0.3 24.4
Disposals - (10.5) (0.8) - (11.3)
Currency adjustment - 0.5 0.1 - 0.6
At 30 June 2024 - 250.9 45.7 11.8 308.4
Carrying amount
At 30 June 2024 1.3 309.8 33.4 18.4 362.9
At 31 December 2023 - 315.7 34.6 18.4 368.7
At 30 June 2023 0.1 327.9 17.7 17.8 363.5
8. Right-of-use assets
Vessels Plant, Equipment and Vehicles Land and Buildings Total
€m €m €m €m
Cost
At 31 December 2023 15.4 14.6 32.0 62.0
Additions 84.3 0.9 0.3 85.5
Disposals - (0.6) - (0.6)
Currency adjustment - - 0.2 0.2
At 30 June 2024 99.7 14.9 32.5 147.1
Accumulated depreciation
At 31 December 2023 6.2 8.6 11.1 25.9
Charge for period 5.2 1.1 1.4 7.7
Disposals - (0.6) - (0.6)
Currency adjustment - - - -
At 30 June 2024 11.4 9.1 12.5 33.0
Carrying amount
At 30 June 2024 88.3 5.8 20.0 114.1
At 31 December 2023 9.2 6.0 20.9 36.1
At 30 June 2023 16.0 7.1 24.7 47.8
Additions of right-of-use assets include €2.6 million (2023: €1.2 million)
of directly attributable costs relating to new leases commenced in the period.
9. Lease receivable
30 Jun 24 30 Jun 23 31 Dec 23
€m €m €m
Operating activities
Current finance lease receivable 9.0 3.1 3.2
Non-current finance lease receivable - 9.0 7.3
Total 9.0 12.1 10.5
Beginning of reporting period 10.5 13.6 13.6
Amounts received (1.7) (1.8) (3.6)
Net benefit recognised in period 0.2 0.3 0.5
End of reporting period 9.0 12.1 10.5
The lease receivable relates to amounts due under a bareboat hire purchase
sale agreement for the disposal of the vessel GNV Allegra in FY 2019. The
deferred consideration has been treated as a finance lease receivable at an
amount equivalent to the net investment in the lease. Capital amounts received
in the financial period are classified as net proceeds on disposal of
property, plant and equipment in the Condensed Consolidated Statement of Cash
Flows.
None of the lease receivable at 30 June 2024 was past due and, taking into
account the payment experience up to the date of approval of these Condensed
Financial Statements together with retention of legal title, no provision for
expected credit losses was considered to be required.
10. Net debt and borrowing facilities
i) The components of the Group’s net debt position at the reporting date
and the movements in the period are set out in the following table:
Cash Bank loans Loan notes Lease liabilities Origination fees Total
€m €m €m €m €m €m
At 1 January 2024
Current assets 46.8 - - - - 46.8
Creditors due within one year - (62.5) (50.0) (11.6) 0.1 (124.0)
Creditors due after one year - (41.3) - (25.4) 0.2 (66.5)
46.8 (103.8) (50.0) (37.0) 0.3 (143.7)
Movements during the period
Cash flow changes
Repayments - 15.8 - 6.7 - 22.5
Drawdowns - (12.5) - - - (12.5)
Other movements 4.4 - - - 0.7 5.1
Non cash flow changes
Amortisation - - - - (0.1) (0.1)
Lease liabilities recognised - - - (82.9) - (82.9)
Currency adjustment - - - (0.1) - (0.1)
4.4 3.3 - (76.3) 0.6 (68.0)
At 30 June 2024
Current assets 51.2 - - - - 51.2
Creditors due within one year - (7.5) (50.0) (10.8) 0.2 (68.1)
Creditors due after one year - (93.0) - (102.5) 0.7 (194.8)
51.2 (100.5) (50.0) (113.3) 0.9 (211.7)
At 30 June 2023
Current assets 35.0 - - - - 35.0
Creditors due within one year - (7.5) - (14.7) 0.2 (22.0)
Creditors due after one year - (94.5) (50.0) (33.2) 0.2 (177.5)
35.0 (102.0) (50.0) (47.9) 0.4 (164.5)
ii) The maturity profile and available borrowing and cash facilities
available to the Group at 30 June 2024 are set out in the following table:
Maturity Profile
Facility Undrawn On-hand / drawn Less than 1 year Between 1 – 2 years Between 2 – 5 years More than 5 years
€m €m €m €m €m €m €m
Cash - - 51.2 - - - -
Committed lending facilities
Bank overdrafts 15.4 15.4 - - - - -
Bank loans 145.0 44.5 100.5 7.5 7.5 78.0 7.5
Loan notes 50.0 - 50.0 50.0 - - -
Leases 113.3 - 113.3 10.8 82.1 4.1 16.3
Origination fees (0.9) - (0.9) (0.2) (0.1) (0.4) (0.2)
Committed lending facilities 322.8 59.9 262.9 68.1 89.5 81.7 23.6
Uncommitted lending facilities
Bank loans 50.0
Loan notes 206.9
Uncommitted lending facilities 256.9
Bank overdrafts are stated net of trade guarantee facilities utilised of
€0.6 million.
At 30 June 2024 and the date of approval of these Condensed Financial
Statements, the Group satisfies the conditions for drawing under the committed
facilities.
Obligations under the Group borrowing facilities have been cross guaranteed by
the parent company and certain subsidiaries but are otherwise unsecured except
for lease obligations which are secured by the lessors’ title to leased
assets.
11. Tax
Corporation tax for the interim period is estimated based on the best estimate
of the weighted average annual corporation tax rate expected to apply to each
taxable entity for the full financial year.
The Company and subsidiaries that are Irish Resident for tax purposes have
elected to be taxed under the Irish tonnage tax scheme. Under the tonnage tax
scheme, taxable profit on eligible activities is calculated on a specified
notional profit per day related to the tonnage of the ships utilised.
12. Financial instruments and risk management
The Group’s activities expose it to a variety of financial risks, including
market risk (such as interest rate risk, foreign currency risk, commodity
price risk), liquidity risk and credit risk. The Group’s funding, liquidity
and exposure to interest and foreign exchange rate risks are managed by the
Group’s treasury and accounting departments. Treasury management practices
are used to manage these underlying risks.
These interim Condensed Financial Statements do not include all financial risk
management information and disclosures required in the annual financial
statements, and should be read in conjunction with the 2023 Annual Report.
There have been no changes to the risk management procedures or policies since
the 2023 year end.
i) Carrying value and fair value estimation of financial assets and
liabilities
The table below sets out the carrying value and fair values of the Group’s
financial assets and liabilities at the reporting date.
30 Jun 24 30 Jun 23 31 Dec 23
Carrying value Fair value Carrying value Fair value Carrying value Fair value
€m €m €m €m €m €m
Financial assets
Lease receivable 9.0 9.0 12.1 12.1 10.5 10.5
Trade and other receivables 82.2 82.2 88.6 88.6 61.2 61.2
Cash and cash equivalents 51.2 51.2 35.0 35.0 46.8 46.8
Total financial assets 142.4 142.4 135.7 135.7 118.5 118.5
Financial liabilities
Borrowings 149.6 145.5 151.6 143.2 153.5 148.4
Trade and other payables 89.7 89.7 84.3 84.3 80.5 80.5
Total financial liabilities 239.3 235.2 235.9 227.5 234.0 228.9
ii) Fair value hierarchy
The Group has adopted the following fair value measurement hierarchy for
financial assets and liabilities:
* Level 1: quoted (unadjusted) prices in active markets for identical assets
and liabilities.
* Level 2: other techniques for which all inputs that have a significant
effect on the recorded fair value are observable, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
* Level 3: techniques that use inputs which have a significant effect on the
recorded fair value that are not based on observable market data.
The Group did not hold any financial assets or financial liabilities at the
reporting dates required to be carried at fair value in the Condensed
Statement of Consolidated Financial Position.
iii) Fair value of financial assets and financial liabilities
measured at amortised cost
With the exception of the financial liabilities related to borrowings set out
in the table at (i) above it is considered that the carrying amounts of
financial assets and financial liabilities recognised at amortised cost in
these half year financial statements approximate their fair values.
The fair value of borrowings are classified within Level 3 of the fair value
hierarchy. Fair value has been estimated based on discounted cash flow
analysis with the most significant input being the discount rate reflecting
the Group’s own credit risk. The discount rate is derived from observable
market interest rates at the reporting date and observable credit spread
market movements since inception of the borrowings. For lease liabilities the
Group considers that the incremental borrowing rate used to calculate the
carrying value includes a fair estimate of counterparty risk and the carrying
value approximates fair value.
iv) Derivative financial instruments
At 30 June 2024, 31 December 2023, and 30 June 2023, the Group did not hold
any positions relating to derivative financial instruments.
13. Retirement benefit schemes
The assumptions used to value pension obligations were reviewed against the
background of market conditions as at 30 June 2024, leading to a change in
discount and inflation rate assumptions, while demographic and other
assumptions were retained at 31 December 2023 levels. Scheme assets have been
valued as per investment managers’ valuations at 30 June 2024. In
consultation with the actuary to the principal Group defined benefit pension
schemes, the discount rate used in relation to the pension scheme liabilities
is 3.60% for Euro liabilities (31 December 2023: 3.15%) and 5.10% for Sterling
liabilities (31 December 2023: 4.50%).
At 30 June 2024, the Group’s total obligation in respect of defined benefit
schemes totals €79.6 million (31 December 2023: €96.9 million). The
schemes held assets of €128.8 million (31 December 2023: €135.8 million),
giving a net pension surplus of €49.2 million (31 December 2023: €38.9
million). Pension obligations and scheme assets at 30 June 2024 reflect
transfer values paid since 1 January 2024 of €12.4 million.
The principal assumptions used for the purpose of the actuarial valuations at
30 June 2024 were derived using techniques consistent with those used for the
assumptions for the 31 December 2023 valuations. The assumptions, which were
set after considering independent actuarial advice and which are reflective of
market conditions that existed at 30 June 2024, were as follows:
30 Jun 24 30 Jun 23 31 Dec 23
Sterling Euro Sterling Euro Sterling Euro
Discount rate 5.10% 3.60% 5.20% 3.60% 4.50% 3.15%
Inflation rate 2.85% 2.30% 2.95% 2.40% 2.75% 2.30%
Rate of increase of pensions in payment 2.20% - 3.25% 1.30% 2.20% - 3.35% 1.40% 2.15% - 3.20% 1.30%
Rate of pensionable salary increases 1.15% 0.00% - 1.30% 1.20% 0.00% - 1.35% 1.10% 0.00% - 1.30%
The movements in the net surplus on the retirement benefit schemes were as
follows:
HY 2024 HY 2023 FY 2023
Movement in retirement benefit schemes net surplus €m €m €m
Opening surplus 38.9 33.2 33.2
Service cost (0.3) (0.4) (1.0)
Employer contributions paid 0.2 0.2 0.4
Net interest income 0.7 0.7 1.3
Actuarial gain 9.3 6.8 4.9
Currency adjustment / other 0.4 0.4 0.1
Net surplus 49.2 40.9 38.9
Schemes in surplus 49.6 41.2 39.4
Schemes in deficit (0.4) (0.3) (0.5)
Net surplus 49.2 40.9 38.9
The movement in the net pension surplus since 31 December 2023 includes
actuarial gains which are recognised in the Condensed Consolidated Statement
of Comprehensive Income.
HY 2024 HY 2023 FY 2023
Actuarial gains recognised in the Condensed Consolidated Statement of Comprehensive Income €m €m €m
Return on scheme assets excluding amounts recognised as finance income 3.5 5.4 10.3
Remeasurement adjustments on scheme liabilities
- Changes in demographic assumptions (0.3) - -
- Changes in financial assumptions 4.9 2.3 (4.8)
- Experience adjustments 1.2 (0.9) (0.6)
Actuarial gains recognised in the Condensed Consolidated Statement of Comprehensive Income 9.3 6.8 4.9
The actuarial gain arising on scheme assets, which are mainly invested across
a number of equity and bond funds, is reflective of market movements while
there were also reductions in liabilities attributable to the change in
financial assumptions.
No provision has been made against scheme surpluses as the Group expect,
having reviewed the rules of the relevant schemes, that the surplus will
accrue to the Group in the future.
14. Cash flow components
HY 2024 HY 2023 FY 2023
€m €m €m
Pension scheme movements
Retirement benefit obligations – current service cost 0.3 0.4 0.8
Retirement benefit obligations – past service cost - - 0.2
Retirement benefit obligations – payments (0.2) (0.2) (0.4)
Total retirement benefit scheme movements 0.1 0.2 0.6
Repayments of lease liabilities
Lease payments (7.9) (9.7) (19.5)
Interest element of lease payments 1.2 0.7 1.5
Capital element of lease payments (6.7) (9.0) (18.0)
Purchases of property, plant and equipment and intangible assets
Purchases of property, plant and equipment (17.7) (25.7) (50.7)
Purchases of intangible assets (0.2) (0.3) (0.6)
Decrease / (increase) in capital asset prepayments 0.1 (3.6) 9.4
Total purchases of property, plant and equipment and intangible assets (17.8) (29.6) (41.9)
Changes in working capital
(Increase) / decrease in inventories (4.0) 0.9 1.2
(Increase) / decrease in receivables (16.9) (5.8) 2.0
Increase / (decrease) in payables 31.7 28.1 (1.5)
Total working capital movements 10.8 23.2 1.7
At 30 June 2024 and 30 June 2023, the overall working capital movements
amounted to €10.8 million and €23.2 million respectively, which
principally relate to seasonal working capital inflows that are expected to
unwind in the second half of the year.
During the six months ended 30 June 2024, there were no material changes to,
or material transactions between Irish Continental Group plc and its key
management personnel or members of their close family, other than in respect
of remuneration. There were no other material related party transactions in
the period.
15. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation.
16. Contingent assets / liabilities
There have been no material changes in contingent assets or liabilities as
reported in the Group’s financial statements for the year ended 31 December
2023.
17. Composition of the entity
There have been no changes in the composition of the entity during the half
year ended 30 June 2024.
18. Commitments
HY 2024 HY 2023 FY 2023
€m €m €m
Commitments for the acquisition of property, plant and equipment – approved and contracted for, but not accrued 0.4 2.8 1.6
19. Events after the reporting period
There have been no material events occurring after the period ended 30 June
2024.
20. Board approval
This interim report was approved by the Board of Directors of Irish
Continental Group plc on 28 August 2024.
APPENDIX: RECONCILIATION OF APMS
FOR THE HALF YEAR ENDED 30 JUNE 2024
Alternative Performance Measures
Certain financial measures set out in our Half-Yearly Financial Report to 30
June 2024 are not defined under International Financial Reporting Standards
(IFRS). Presentation of these Alternative Performance Measures (APMs) provides
useful supplementary information which, when viewed in conjunction with the
Group’s IFRS financial information, allows for a more meaningful
understanding of the underlying financial and operating performance of the
Group. These non-IFRS measures should not be considered as an alternative to
financial measures as defined under IFRS.
Descriptions of the APMs included in this report are disclosed below.
EBITDA
EBITDA represents earnings before non-trading items, interest, tax,
depreciation and amortisation. As it eliminates the effects of financing and
depreciation decisions it allows for the assessment of underlying cash profit
generated from operations.
Financial Statement Reference HY 2024 HY 2023 FY 2023
€m €m €m
Operating profit Condensed Consolidated Income Statement 17.4 16.2 68.4
Depreciation and amortisation Condensed Consolidated Income Statement 32.3 32.8 64.2
EBITDA 49.7 49.0 132.6
Free Cash Flow
Free cash flow comprises net cash flow from operating activities less capital
expenditure. It is presented both before and after strategic capital
expenditure. Capital expenditure comprises purchases of property, plant and
equipment, intangible assets and lease inception costs. Strategic capital
expenditure comprises expenditure on vessels excluding annual overhaul and
repairs, and other assets with an expected economic life of over 10 years
which increases capacity or efficiency of operations.
It is presented as a measure of the availability to the Group of funds for
reinvestment or for return to shareholders.
Financial Statement Reference HY 2024 HY 2023 FY 2023
€m €m €m
Net cash inflow from operating activities Condensed Consolidated Statement of Cash Flows 61.9 69.8 128.6
Capital expenditure excluding strategic capital expenditure Condensed Consolidated Statement of Cash Flows (14.1) (17.2) (21.5)
Free cash flow before strategic capital expenditure 47.8 52.6 107.1
Strategic capital expenditure Condensed Consolidated Statement of Cash Flows (6.3) (13.6) (21.8)
Free cash flow after strategic capital expenditure 41.5 39.0 85.3
The total of the capital expenditure amounts set out above is included in the
Condensed Consolidated Statement of Cash Flows as purchases of property, plant
and equipment and intangible assets and lease inception costs.
Net Debt
Net debt comprises total borrowings and lease liabilities included as current
and non-current liabilities less cash and cash equivalents.
Net debt is a measure of the Group’s ability to repay its debts if they were
to fall due immediately. Net debt (pre-IFRS16) is a measure of net debt for
banking covenant purposes which excludes IFRS 16 lease liabilities.
Financial Statement Reference HY 2024 HY 2023 FY 2023
€m €m €m
Net Debt Note 10 211.7 164.5 143.7
Current lease liabilities Note 10 (10.8) (14.7) (11.6)
Non-current lease liabilities Note 10 (102.5) (33.2) (25.4)
Net Debt (pre-IFRS 16) 98.4 116.6 106.7
Adjusted Basic EPS
Basic EPS is adjusted to exclude non-trading items and net interest cost on
defined benefit obligations. Non-trading items are material non-recurring
items that derive from events or transactions that fall outside the ordinary
activities of the Group and which individually, or, if of a similar type, in
aggregate, are separately disclosed by virtue of their size or incidence.
It is used as a key indicator of long-term financial performance and value
creation of a public listed company.
The calculation of adjusted basic EPS is set out at Note 6.
In addition to the above APMs, the Group utilises additional APMs of Return on
Average Capital Employed and Schedule Integrity in relation to full year
performance which are not meaningful at the half year