Irish Cont. Regulatory News (ICGC)

12 Dec 2005 07:01

Irish Continental Group PLC12 December 2005 IRISH CONTINENTAL GROUP PLC Trading update Irish Continental Group plc ("ICG") announces that, arising from theinterruption 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 thatit was engaged in a review process, in an attempt to progress a sustainable wayforward in crewing our Irish Sea vessels. On 16 September the Company announceda restructuring of crewing on its vessels serving the Irish Sea. A voluntaryseverance 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. On24 November 2005 the Company began to train replacement crew on board two of thevessels. Industrial action was then taken by some of the existing crew whichresulted in the cessation of services on those vessels from that date. On 27November industrial action commenced on a third vessel. Separately, the Company was advised by Iarnrod Eireann / Irish Rail , which isthe Rosslare Port Authority, that a fourth vessel would not be handled on 27November 2005, at the port of Rosslare, its scheduled port in Ireland. Allservices have remained suspended since that date. Following intervention by the National Implementation Body, talks to resolve theinterruption to services commenced on 5 December 2005 at the Labour RelationsCommission, 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 profiteffect of €5.5 m due to lost revenue and additional costs as at the date of thisannouncement. In the event that services remain suspended for the remainder ofthe financial year the total adverse profit effect is estimated at €11m. End 12 December 2005 This information is provided by RNS The company news service from the London Stock Exchange