The UK's vote to leave the European Union and the subsequent weakening of the pound failed to take the wind out of Irish Continental's (ICGC) sails in 2016. Rampant demand from holidaymakers and shipping companies, coupled with a healthy dose of better customer service, triggered an 11 per cent rise in the dual-listed ferry group's cash profit to €84m (£73m).
In the core ferries segment, increased chartering activity and market-beating truck and car volumes led cash profit 11 per cent higher to €71m. Management also credited a 17 per cent fall in energy costs for this success, although the group's decision to pass on lower fuel charges to customers via cheaper ticket prices meant this benefit wasn't maximised.
Elsewhere, strong levels of imports into an economically booming Ireland kept its shipping line and container terminals in Belfast and Dublin busy. In a tightening market, Eucon's shipping volumes rose 6 per cent to 303,600, while containers handled at Irish Continental's terminals received a big boost from management's previous decision to combine two existing hubs in Belfast.
Consensus forecasts are for a 2017 pre-tax profit of €60.1m, giving adjusted EPS of 31.3¢ (from €60.4m and 31.1¢ in 2016).
| IRISH CONTINENTAL (ICGC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 508¢ | MARKET VALUE: | €957m | |
| TOUCH: | 481-520¢ | 12-MONTH HIGH: | 572¢ | LOW: 390¢ |
| DIVIDEND YIELD: | 2% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 77¢ | NET DEBT: | 26% | |
| Year to Dec 31 | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 * | 256 | 21.0 | 18.3 | 10.00 |
| 2013 * | 265 | 23.7 | 14.6 | 10.00 |
| 2014 | 290 | 56.7 | 30.4 | 10.50 |
| 2015 | 321 | 54.1 | 28.9 | 11.00 |
| 2016 | 325 | 60.4 | 31.4 | 11.58 |
| % change | +1 | +12 | +9 | +5 |
Ex-div: 25 May Payment: 9 Jun *EPS and DPS figures prior to 2014 adjusted for 10-for-one share split £1=€1.154 | ||||
