Monday, 17 October 2011

David MacBrayne Group Publishes 2010/11 Annual Report

The David MacBrayne Group, which comprises the principal operators of the Clyde and Hebrides ferry services and the Northern Isles ferry services, today (Thursday, October 13, 2011) published its Annual Report for 2010/2011.

The Annual Report includes the company’s main subsidiaries, CalMac Ferries Ltd and NorthLink Ferries Ltd, and its other subsidiaries including Cowal Ferries Ltd, which operated the Gourock/ Dunoon service until the end of June 2011, when another subsidiary, Argyll Ferries Ltd, took over.

For the first time, as required by the Scottish Government, the consolidated financial statements have been moved from UK GAAP (Generally Accepted Accounting Principles) to International Financial Reporting Standards (IFRS.)

David MacBrayne Group Chairman Peter Timms said: “2010/2011 was a good year with several highlights including the completion of MV Finlaggan, our first new vessel in 4 years, winning the Gourock-Dunoon tender, and both operating companies receiving prestigious awards.

“CalMac was named ‘Public Transport Operator of the Year’ for both 2010 and 2011, and named ‘Best Ferry Company’ for both 2010 and 2011 in the prestigious Guardian and Observer Travel Awards. The latter is particularly pleasing as it is voted for by customers who have had such a positive and memorable experience that they wished us to be recognised in this way.”

NorthLink was awarded a ‘healthy living’ award as part of a Scottish Government initiative to encourage healthier eating.”

Mr Timms reported positive increases in freight figures on both CalMac and NorthLink routes, although there were mixed results for the group in terms of passengers and cars.

He said:”The increase in freight metre carryings; up 5% on the Clyde and Hebrides routes and up 4% on the Northern Isles routes was very encouraging, especially in the current economic climate, and demonstrates how much freight traffic has become the backbone of our lifeline services. On CalMac services, passenger and car carryings decreased by 1% and 3% respectively compared with the previous year, while on NorthLink services passenger carryings were up 1% while car carryings were down by 3% compared with the previous year.”

In his foreword to the report, which was laid before the Scottish Parliament today, Mr Timms reported that both of the main operating companies, CalMac Ferries Ltd. and NorthLink Ferries Ltd., performed satisfactorily in terms of the operational and functional targets set within their respective contracts with the Scottish Government.

In addition, both CFL and NFL both achieved levels at or close to 100% for punctuality and reliability, after weather and other causes of disruptions were taken into account.

He said revenue from fares and other sources at £82.6m and operating costs at £176.7m were largely in line with expectations. The group recorded an operating profit for 2010/11 of £3.2m although a technical adjustment resulting from the adoption of IFRS, which takes into account the market value of the fuel hedge at each Balance Sheet date , results in a loss before tax of £0.9m. This technical adjustment has an equal but opposite effect on the previous year’s profit before tax.

Mr Timms said:”Increased fuel and vessel chartering costs was the main reason for an increase in grants received from the Scottish Government which rose to £97.3m, an increase of 2.7% compared with the previous year.”

He also highlighted that David MacBrayne has improved efficiency, effectiveness and economy in the exercise of its functions, which resulted in £3.2m contractual “clawback” payments being made to Scottish Government under the terms of the Public Service Contracts for Ferry Services.

The Annual Report of the David MacBrayne Group is available on the internet at