headerphoto

CHAIRMAN'S REPORT
for the year ended 31 December 2009

Download the full Company Report Finance 2009,  PDF File Icon - 696Kb

INTRODUCTION

As Chairman of the company, I am pleased to present the company's thirteenth Annual Report.

COMPANY OPERATIONS, PROFITABILITY AND STATE OF AFFAIRS

Total revenue for the year at €10,720,983 decreased by 2% on the previous year.

Shipping turnover increased by 2% in 2009. However, revenue, from sources other than shipping, decreased by 9% during the year. Marina Revenue decreased by 3% while revenue from parking fees decreased by 12%.

Operating expenditure excluding exceptional expenditure decreased from €8,036,609 in 2008 to €7,310,954 in 2009, a decrease of 9%.

Operating profit decreased by 54% in 2009.

Profit before taxation was €671,208 in 2009. This compares with a profit before tax of €3,667,485 in 2008. However, in 2008, the profit figure included a realised profit from the sale of land of €1,252,944. Excluding land sales, profit before tax decreased by 72%.

Profit after tax amounted to €205,071.

After adding the profit after tax for 2009 and adding an actuarial gain in respect of the Company's pension fund (net of deferred taxation) of €997,500 and an unrealised loss arising from the revaluation of investment property of €4,555,004, the company has Profit and Loss and Revaluation reserves of €29,963,820 carried forward to 2010.

COMMERCIALLY SIGNIFICANT DEVELOPMENTS DURING 2009

In terms of 2009, the company decided, based on professional advice, to clear the derelict buildings on Carlisle Pier. The facility can now, for the first time in over 13 years, be put to constructive use.

In 2009, the company decided to upgrade the Berth 4, as a fit-for use ferry berth; Berth 4 has been unused for almost 14 years. Also in 2009 the Company opened, for the first time in 5 years the battery at the end of the East Pier. This was undertaken having completed the resurfacing of the East Pier.

SIGNIFICANT FUTURE DEVELOPMENTS

The commercially significant developments affecting the company in the year under review include:

  1. Discussions on a new ferry contract to replace the existing contract which expires in April 2011.
  2. A major restructuring plan, including a Voluntary Redundancy scheme, to position the company for the projected revenue difficulties it faces.
  3. A significant investment in a PPP feasibility study to identify new revenue streams.

SYSTEM OF INTERNAL FINANCIAL CONTROL

I confirm compliance with Appendix V of the Code of Practice for the Governance of State Bodies as follows:

  1. I acknowledge that the Board is responsible for the company’s system of internal financial control;
  2. Such a system can provide only reasonable and not absolute assurance against material error;
  3. The following key procedures have been put in place by the Board, designed to provide effective internal financial control:
    1. establishment of a clearly defined management structure
    2. business risks are identified as part of the business planning process. Where appropriate, based on the advice of the Chief Executive, independent professional advisors are employed to advise the Board on the management of the risks identified
    3. annual business plan submitted to, and approved by, the Board
    4. establishment of authorisation limits for expenditure
    5. regular review of the financial results at Board level
    6. assessment of results versus budgets previously approved by the Board on a quarterly basis
    7. approval of major contracts at Board level
    8. establishment of an audit committee to independently review the financial results of the company and to meet independently with the external auditors of the company.
  4. I confirm that there has been a review of the effectiveness of the system of internal financial control.
  5. I confirm that the company has engaged appropriate external expertise to carry out its internal audit function, which operates in accordance with the Framework Code of Best Practice set out in Appendix II of the Code.
  6. I confirm that the requirements for procurement, in accordance with Section 15 of the Code, have been fulfilled.
  7. I confirm that this statement of internal financial control has been reviewed by external auditors.

I would like to conclude by thanking my fellow Directors, Management and Staff for their commitment, hard work and dedication, which has delivered a strong set of financial results for the company in 2009.

Sean Costello
Chairman
Date 15th April 2010

Download the full Company Report Finance 2009,  PDF File Icon - 696Kb