Mersey Docks – Pre-interim results trading update
RNS Number:7361M
Mersey Docks & Harbour Co
25 June 2003
25th June, 2003.
THE MERSEY DOCKS & HARBOUR COMPANY
Pre-interim results trading update
The Company is making this statement in advance of the half-year end on 30th
June, 2003. The announcement of the half-year results is expected to be made on
9th September, 2003.
Overview
Trading in the first half of 2003 is likely to be in line with the indication
given at the time of the preliminary results in March, and repeated in the AGM
statement in May. The Board continues to believe that overall trading in 2003
should be similar to that achieved in 2002, and the additional capacity created
by the recent capital investment programme will enable the Group to benefit from
any future upturn in general economic conditions.
Port Operations
Overall the Ports division has been trading in line with expectations reflecting
a range of performances across different ports and key cargo sectors. Liverpool
has seen healthy growth in container volumes but slight weakness in roll-on/
roll-off and agribulks. At Sheerness, fresh produce imports have been similar
to 2002, while car volumes have maintained growth in spite of weakening sales in
the UK market and the port has received a significant boost with the
commencement of exports from Thamesteel. In Dublin, Marine Terminals’
re-equipment programme was completed in February and the two new services have
generated strong growth in the first half.
Both Liverpool and Heysham have been adversely impacted by the uncertainty
affecting NorseMerchant’s Irish Sea ferry services. However, the eventual
resolution of the Administration for NorseMerchant and its parent company
Cenargo is expected to be positive for the Group.
Shipping
In the Shipping division there has been continuing pressure on margins which has
affected Coastal Container Line, but all of the Group’s shipping interests
remain profitable.
Logistics and Transport
The Logistics and Transport division’s overall trading is also expected to be
slightly weaker than 2002. Roadferry has performed satisfactorily
notwithstanding the slowdown in the Irish economy and intense price competition,
but the tank transport companies have suffered loss of margin.
Property
Property investment income is expected to be in line with forecast. Several
enquiries are being progressed for lettings at the new office building at
Princes Dock and outline planning consent for Central Docks was granted on 17th
June, 2003.
Share Repurchase Programme
The share repurchase programme has resulted in the purchase and cancellation of
3.31 million shares in the first half at a total cost of #15.6 million. With
capital expenditure sharply down compared to 2002, overall borrowings at 30th
June should be approximately #235 million.
