Shares in shipping group Irish Continental rebounded on the Dublin market after the group reported better-than-expected full-year results and commented positively on the first two months trading in the current year. ICG shares jumped 48 cents to #6.60 - their best level for more than two months and well above the #4.80 low of late 2000.

While pre-tax profits fell from #26.8 to #19 million, this full-year figure was ahead of market expectations, particularly the performance in the more important second half of the financial year. With ICG benefiting from lower fuel prices, likely additional charter income, price increases and the introduction of the Ulysses superferry on the northern Irish Sea routes, analysts are likely to increase their current 2001 forecasts for the group. Earnings per share last year fell from 100.7 cents to 70 cents although shareholders are getting a hefty increase in the dividend to 14.25 cents.

In the second half of the year, when ICG does the bulk of its business, sales rose 23 per cent to #191 million while pre-tax profits fell only marginally to #23.7 million from #24.2 million. "The stability of the second half performance provides welcome evidence that the process of readjustment to the more difficult cost environment is being implemented successfully," said chief executive Mr Eamon Rothwell.

Operating profits in the ferries division fell to #29.8 million from #32.4 million although sales in the division were substantially higher, rising to #194.9 million from #153.5 million. While passenger numbers on the Dublin routes rose 14 per cent to 1.15 million, the Rosslare routes suffered an 8 per cent fall in passengers to 450,000. Passenger numbers on the French routes grew by 5.7 per cent to 207,000.

The container and terminals division had a difficult year with operating profits of #5 million being turned into a loss of #500,000 even though turnover jumped almost 25 per cent to #119.5 million. ICG also had to cope with start-up costs of new container routes to Bilbao and St Petersburg, although the latter route has now been suspended on cost grounds.

With the arrival of the Ulysses superferry in the first half of the year, ICG will have an 80 per cent increase on its freight capacity on the Dublin-Holyhead route. The arrival of the Ulysses means that ICG aims to charter out the Isle of Inishmore and Isle of Innishfree ferries from the early summer.