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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
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