IRISH CONTINENTAL Group is monitoring distressed businesses in its sector with a view to finding potential acquisition targets, according to chief executive Eamonn Rothwell.
Speaking to reporters after the shipping group’s agm yesterday, Mr Rothwell said ICG had no immediate targets in mind.
“In this recession . . . there are clearly distressed situations out there and we monitor them. There is nothing imminent, but obviously we watch the sector and do a lot of research. Having a strong balance sheet allows you to move quickly.”
Last year ICG reduced its net debt position from €21.7 million to €6.3 million, bringing its gearing level from 14.2 per cent to 3.5 per cent.
Mr Rothwell said he does not expect the economy to return to growth this year even though some “constituent parts” such as exports were doing well.
He has “no current intention” to launch another management take-over bid for the group.
“It’s not an agenda item. If it ever becomes an agenda item in the future, clearly a set of rules in relation to dealing with the board.”
Mr Rothwell declined to comment on the decision by the Doyle shipping group to offload its 12.5 per cent stake in ICG last week. Doyle bought the stake when it was part of the Moonduster consortium that sought to acquire the group in competition with a management bid. Moonduster was led by the One51 investment group.
“We’re not in the business of commenting on why shareholders sell or buy ,” he said.
The group does not plan to hedge against oil prices because “at this point in time I don’t know where fuel is going”. It was something the group would keep under review.
Mr Rothwell also said the Icelandic ash cloud crisis in May 2010 led to some “better booking patterns” later in the year for ICG, which operates Irish Ferries. However, the volcanic eruption in recent weeks did not translate into a bounce in bookings.
In terms of potential acquisition plans, ICG is restricted in its ability to expand geographically because of its preference for operating in Ireland and Britain.
“We’re more comfortable in the British Isles than we would be in the Mediterranean and the Baltics. We’re not comfortable in the States.” Its roll-out model was based on buying out existing operators rather than starting from scratch in new markets.
A dividend of €1 per share was approved at yesterday’s agm, as was the re-election of chairman John McGuckian and finance director Gearoid O’Dea.
The group’s share price hit a daily high of almost €16.65 yesterday before slipping to €16.30, down 5.5. cent on the day.