REVENUES AT Irish Continental Group (ICG) grew by 2.2 per cent to €122 million in the first half of the year, boosted by an increase in passenger numbers as a result of the volcanic ash cloud.

The shipping group, which ferries passengers, cars and freight between Ireland, Britain and continental Europe, carried just over 695,000 passengers in the first six months of the year, a 12 per cent jump from the same period in 2009 as travellers took to the seas.

The growth in passenger numbers helped to offset the fall in car numbers, down by 1.4 per cent.

The freight side of the business continued to be soft, with volumes in the roll-on/roll-off market down 12.6 per cent on the first half of last year. This was due to the continued weakness in the Irish economy and excess capacity in the freight market, according to the company.

The company reported pre-tax profits of €8.2 million for the first half of the year, up from €5.8 million a year earlier.

Earnings before interest, tax and depreciation were €20 million, rising 6.4 per cent from the €18.8 million recorded last year, despite fuel costs rising by 48 per cent to €20.1 million.

ICG did not provide any guidance for the second half of the year, typically the more profitable period for the company.

Chief executive Eamonn Rothwell told The Irish Times the results were very positive.

While declining to give any specific forecasts for the remainder of the year, Mr Rothwell said car numbers were up by 4 per cent in July and August, indicating a long-term move towards ferry travel as customers moved away from airline travel, particularly as a result of add-on fees charged by airlines.

Analysts responded well to yesterday’s figures, highlighting in particular the company’s strong balance sheet. Net debt now stands at €26.9 million, down 44 per cent from a year earlier.

According to Davy Stockbrokers, ICG should be close to debt-free by the end of the year.

Mr Rothwell said the company’s strong balance sheet left it well-placed to fund any future acquisitions.

“While there is nothing specific in terms of acquisitions, there are definitely opportunities in the current economic climate.”

At the company’s annual meeting of shareholders in June, 24.9 per cent shareholder Moonduster, a consortium led by Philip Lynch, blocked a resolution which would have allowed the ferry company to pursue a rights issue and offer share options to executives.

Mr Rothwell expressed his frustration at the time, pointing out that it could hinder ICG’s ability to make an acquisition this year and took away a means of incentivising executives.

Moonduster voted in favour of a similar motion at last year’s agm. ICG closed 2.5 cent lower yesterday at €14.70.