There are a number of potential risks and uncertainties which could have a material impact on the Group’s long term performance. The Group has a risk management structure in place which is designed to identify, manage and mitigate the threats to the business. However, it is not possible to eliminate all risk. The more significant risks and uncertainties faced by the Group are as follows:
The Group is dependent on the safe operation of both passenger and freight vessels. There is a risk that any of the Group’s vessels could be involved in an incident which could cause loss of life and cargo and cause significant interruption to the business. Similarly, in the event that critical port installations were to be damaged and placed out of commission for a protracted period of time there is a risk of substantial business interruption. In mitigation, the Group has a major accident response plan for emergency situations and the Group carries insurance in respect of passenger, cargo and third party liabilities, but does not carry insurance for business interruption.
The passenger market is subject to general economic conditions, the propensity of consumers to travel, and, more specifically, the competitive threat from airlines, particularly short haul low cost airlines.
The freight market is subject to general economic conditions and in particular the volume of internationally traded goods in North West Europe.
The Group's vessels consume heavy fuel oil (HFO), marine diesel oil (MDO), and lubricating oils, all of which are subject to price fluctuation. It is the Group’s policy to purchase these commodities in the spot markets and to remain unhedged. The specification of fuel consumed is regulated by EU Law which may change from time to time.
The business of the Group is exposed to the risk of interruption from incidents such as mechanical failure of vessels or plant or labour disputes either within the Group or in key suppliers, for example ports or fuel suppliers, or a loss of significant IT systems.
The Group has the following key resources with which to pursue its key objectives:
In the Ferries Division the Group operates 4 ferries. They are the MV Oscar Wilde (31,914 GT), built 1986, the MV Isle of Inishmore (34,031 GT), built 1997, MV Jonathan Swift (5,992 GT), built 1999, and the MV Ulysses (50,938 GT), built 2001.
The Group also charters out on bareboat charter the MV Pride of Bilbao (37,583 GT), built 1986 and MV Kaitaki (23,365 GT), built 1995.
The Group's leased 33 acre terminal in Dublin Port comprises 480 metres of berths for container ships, with a depth of 9 to 11 metres and equipped with 3 modern Liebherr gantry cranes (40 tonne capacity), 7 rubber tyred gantries (each of 40 tonnes capacity) and one 45 tonne reachstacker on a strategically located site within three kilometres of Dublin City Centre and within one kilometre of the Dublin Port Tunnel. In Belfast our terminal comprises an 11.5 acre site on the County Antrim side of the port, equipped with one mobile crane and three straddle carriers.
The Group has secure port agreements in Ireland, the UK and France in respect of its scheduled ferry services. These port agreements secure slot times, which are critical for the operation of such services.
The Group has invested substantially in its brands; Irish Ferries in the passenger and Roll On Roll Off market place and Eucon and Feederlink in the container freight market.
The Group, which has a rich history and origins dating back to 1837, has a highly experienced and competent staff. The Group has a decentralised structure giving divisional management substantial autonomy in the management of their own divisions. At the end of 2008 we had 438 employees compared with 474 at the start of the year, located in Ireland (Dublin and Rosslare), the UK (Liverpool, Holyhead, Pembroke and Felixstowe) and The Netherlands (Rotterdam).
Irish Continental Group Companies
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Irish Continental Group plc is a public company ltd. by shares and registered in Ireland.
Registration No.: 41043. Registered Address: Ferryport, Alexandra Road, Dublin 1, Ireland.