Mersey Docks and Harbour Year End Prelims
RNS Number:3256F
Mersey Docks & Harbour Co
19th December, 2002
THE MERSEY DOCKS AND HARBOUR COMPANY
Trading Update
This trading statement is made in advance of the end of the financial year on
31st December, 2002. The preliminary statement of results for 2002 is expected
to be made on Monday, 3rd March, 2003.
At the time of the interim statement in August, 2002, the Board’s outlook for
the second half was “cautious but positive”, and general economic conditions
have supported that stance.
Port Operations Division
In most key market sectors cargo throughput will either match or exceed 2001.
Container volumes are expected to be ahead of last year particularly reflecting
increased Mediterranean volumes. In the grain and AFS sector overall throughput
will be very similar to last year although wheat and maize imports will be
slightly lower than expected. As reported at the half year Irish Sea ro/ro
volumes are down on 2001, but increased volumes attracted to the Twelve Quays
terminal in the second half indicate that growth in this sector will be resumed
next year. Fresh produce imports and car imports at Sheerness have continued to
show strong growth throughout the year.
Shipping Division
The Shipping Division has made some progress in a highly competitive market with
a small reduction in overall volumes. However, this has been fully compensated
by improvements in margins.
Logistics and Road Transport Division
The main Roadferry business continues to advance and performance in the tank
transport businesses has shown improvement following acquisition of the 49 per
cent minority holding in TankTrans.
Property Division
The developments outlined in the interim statement continue to progress
satisfactorily.
Summary
Overall, trading is in line with expectations. In the current year the Group has
absorbed the significant increases in interest and depreciation as outlined in
the 2001 Annual Report. Interest charges will be some #11.2m (up #3m on 2001)
and depreciation #2.9m higher at #18.5m.
Capital expenditure for the year, including leasing, will be approximately #47
million. Cash generation remains strong and will be ahead of 2001. Debt at the
year-end is forecast to be approximately #205 million.
Outlook
The continuing weakness in general economic conditions is likely to affect
trading expectations for next year. Pressure on costs will increase and the
Board looks to the recent investment programme to provide operational
efficiencies and improved margins. In light of the prevailing uncertainty the
Board’s view of prospects remains cautious and trading for 2003 is not expected
to be materially different from 2002.
For further information contact:
Peter Jones /Alastair Findlay 0151 949 6240
The Mersey Docks & Harbour Company
Anna Rainbow Smithfield Financial 020 7360 4900
This information is provided by RNS
The company news service from the London Stock Exchange
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