ISLE OF SARK SHIPPING COMPANY LIMITED PUBLIC MEETING PRESENTATION 27 TH JANUARY 2016

Transcription

1 ISLE OF SARK SHIPPING COMPANY LIMITED PUBLIC MEETING PRESENTATION 27 TH JANUARY 2016

2 Section 1 Review of Financial Year Passenger Volumes and Operational Performance passenger and cargo shipping services for the residents of Sark and visitors to it

3 Passenger Volumes Note :- all figures above are passenger legs (to Sark and from Sark) Month 2013/ /15 Variance Comment October 3,763 4, November 1,327 1, December 1,386 1,388 2 January 1, February 837 1, Weather/Offer March 1,939 1, April 6,341 6, May 12,129 12, June 14,956 15, July 23,511 22, Weather August 20,954 18,780-2,174 Weather September 13,053 11,326-1,727 Weather Total 101,234 98,809-2,425 Summary Overall volume was -2% (-2,425 passenger legs) in comparison to financial year 2013/14. The winter volumes followed the established pattern and volume of several previous years. The impact of the adverse weather during late July, August and September account for a significant part of the downturn in passenger volumes, particularly the Day trip visitor numbers. (see next page).

4 Weather Cancellations Number of sailings cancelled due to adverse weather (Guernsey to Sark) 2013/ /15 October 7 7 November 5 6 December 8 9 January 5 9 February 14 3 March 0 4 April 0 6 May 0 4 June 0 8 July 0 1 August 0 3 September 0 7 Total Summer Season (April to September) 0 29

5 Long Term Passenger Volume 9 year average volume 48,143 passengers 51,341 50,533 49,264 47,371 46,983 48,206 48,658 45,693 45, No of Pax 47,371 45,693 45,238 46,983 51,341 48,206 48,658 50,533 49,264 In spite of the adverse weather conditions, and the closure of a number of Hospitality Industry establishments in Sark, passenger volumes remain stable. 49,600-5 year average 48,143-9 year average

6 Passenger Volumes and Market Share (Passenger Legs) During the year there was a significant change to the previous Market Share. Day Trip numbers increased by: + 1,312 passenger legs +3% Period return numbers decreased by: - 2,981 passenger legs 2.5% Single sector numbers also fell by: - 1,186 passenger legs 1% 120, ,000 Period Return Staying in Sark 80,000 60,000 Single ticket (GU to SK & SK to GU) 40,000 Sark Resident and Business Travel 20,000 From Guernsey Day Trip / /15 To ensure the sustainable provision of safe, reliable, friendly and 6 efficient

7 Detail Market Share Market Share Legs Variance 2012/ / /15 Day Return (Gsy originating) 43,691 45,380 43,576-1,804 Day Return (Sark originating) 4,357 4,242 4, Group Day Return (Gsy originating) 13,104 13,516 16,394 2,878 Cruise Ship Day Return Passengers in standard sales 4,400 4, Period Return (Gsy originating) 19,029 19,309 16,545-2,764 Period Return (Sark originating) 4,145 3,750 4, Group Period Return (Gsy originating) 978 1, Single (Guernsey booked) 5,312 5,906 4,110-1,797 Sark Single (Sark Booked) 4,203 3,478 4, Total 94, ,234 98,809-2,425 Note: All volumes are passenger legs Direct booked day trips reduced by over 1,000 passengers due to weather related impact on sales. Group traffic increased significantly, both agent and direct. Weddings, and agent groups (guide and continental air charter driven). Period returns reduced, possibly due to hotel closures and Guernsey residents not being aware of the addition of quality guest accommodation availability during 2015 season (early season negative PR with regard to accommodation availability) EX Sark volumes marginally down for the peak season, this could be attributed to a reduction in the number seasonally resident of hotel staff.

8 Cargo CargoTonnage by Type * Empties Skip General Total Variance Freight Revenue Variance 416, ,000-28,000 Notes: Tonnage totals do not include fuel 2014 tonnage does not include Freight Charter tonnage 2014 revenue includes 14k freight charters Cargo tonnage 2015 includes recording of empties Sark Guernsey Fuel shipments values reduced by - 4.3K in 2015 Recycling paid returns etc. 9K

9 Cargo Volumes 1991 Picot Report records 3,800 tonnes of Cargo 2003 Annual report by P Drake records 75 tonnes per week or 3,900 tonnes of cargo Average 1990 to 2004 cargo tonnage Passenger Vessel Chartered Vessel Cargo Vessel 2009/ / / / / /

10 Cruise Ships Cruise Liner Visits Sark Anchored 8 6 Cruise liners offering Sark Visits Cancelled (numbers) 4 4 Cancelled (weather) 1 6 Travelled from Guernsey Visited Direct Total

11 Sales, Marketing, and the Media Seafront Sundays working with Sark Tourism 6 x Sundays. Contact with locals and visitors. Sea Sark available on the vessels, distributed to Hotels and Guernsey Visitor Centre, Handed out on Seafront Sundays, 12,000 distributed Press Editorial and Reader Offers A close working relationship has been developed with the Guernsey Press Features Editor and Staff, 6x double page centre page colour advertorial pieces published (retail value 19K) plus numerous reader offers. Ollie Learns (BBC Radio) - 2x slots Saturday show, Learning to Captain an IOSS boat and Carriage driving. ITV Player Advert In partnership with Sark Tourism a six week Sark advertisement on ITV Hub aimed at the Guernsey resident. Over 27,000 views and a 2% click through rate Direct Mail (Mail Chimp) IOSS direct e mail database has been increased in size and we now regularly direct mail offers and promotions Hospitality Staff Educational IOSS and Sark Tourism hosted an educational Visit to Sark for Hotel and tourism staff Facebook and Twitter IOSS Facebook page has been split into information, and interest we continue to grow our number of friends and followers Like and share competitions, and information, open to all who want to post.

12 Isle of Sark Shipping 12

13 Section 2 Review of Financial Year and Budget passenger and cargo shipping services for the residents of Sark and visitors to it

14 Financial Results Year Ended 30 th September Passengers 49,264 50,533 48,658 48,206 51,341 Turnover 1,836,963 1,884,594 1,820,920 1,823,414 2,165,786 Operating Costs 1,209,907 1,286,083 1,304,045 1,543,189 1,446,101 Overheads 547, , , , ,890 Net Profit/Loss 79,663 53,025-38, , ,795 All figures above are extracted directly from the audited accounts. The main contributory factors to the reduction in operating costs last year were:- Fuel a reduction of 34k; Crew & quay wages also reduced by 25k; Sark crane services by 11k. A continued concentration of effort on cost control overheads were higher than the annual average due to 40k spent on upgrading the software and hardware and an extra 24k in directors salaries operating costs much higher than average vessel overhaul and repair costs 251k (average k); and crew wages etc 703k (average k) passenger and cargo shipping services for the residents of Sark and visitors to it

15 Liquidity at 30 th September Cash, Bank & Debtors 317, , , , ,259 Less: liabilities 173, , , , ,977 Surplus/Deficit 143,856-67, , , ,718 passenger and cargo shipping services for the residents of Sark and visitors to it

16 BUDGET YEAR ENDED 30 SEPTEMBER 2016 Budget Actual Year End Year End Passengers 51,344 49,264 Turnover 1,839,784 1,836,963 Operating costs 1,226,469 1,209,907 Overheads 561, ,393 Net Profit 51,917 79,663 Previous year Budget Performance & This years budget. For the first Quarter the Company s performance is better than budget. passenger and cargo shipping services for the residents of Sark and visitors to it

17 BUDGET YEAR ENDED 30 SEPTEMBER 2016 High level commentary with regard to 2016 budget: Budget assumption no increase in passenger fares. Wage / salary increase of 0.7 % with effect from 1 Jan 2016 (first rise since June 2013) General Manager, Executive Director and Non Executive Director fees and salaries are 83,660 ( ,537) 2016 Budgeted Operational costs increased vs predominantly due to: Vessel Stability book updates 22,500 in 2016 vs nil last year Venture Overhaul 40,000 in 2016 vs. 15,000 last year

18 Section 3 Moving Forward passenger and cargo shipping services for the residents of Sark and visitors to it

19 IOSS moving forward Chief Pleas review of IOSS Chief Pleas September 2015 meeting accepted Yan Milner's Report relating to Sark Chief Pleas relationship with the Company and adopts the recommendations. The recommendations will ensure: Stronger corporate governance structure (Board & Shareholder) IOSS has stronger and more formal relationships with Chief Pleas as shareholder. IOSS business and operations are open and transparent.

20 IOSS moving forward - Strengthened and more formal relationships with CP as shareholder

21 IOSS moving forward Strengthening relationship with CP - Progress Mission statement developed and adopted To ensure the sustainable provision of a safe, reliable, friendly and efficient passenger and freight shipping service for the residents of Sark and visitors to it Regular meetings with Sark Shipping Committee (developing a Service Level Agreement) Regular meetings with Tourism Committee (collaboration re the IOSS Sales and Marketing Plan IOSS adopting the Sark logo) Regular flow of financial information to Sark Finance &Resources Committee

22 IOSS moving forward Strengthened Corporate Governance IOSS Board Two Executive Directors to manage the business efficiently, to develop strategy and execute the agreed business plan. Paul Garlick, Managing Director Paul Burnard, Finance Director Four Non Executive Directors to contribute experience and expertise, to monitor performance and constructively challenge executive proposals. Julie Mann (ex Executive Director) Advocate Mark Dunster Colonel Richard Graham Captain Peter Gill

23 IOSS moving forward Openness & Transparent Initiatives IOSS monthly operational reports. IOSS monthly financial pack (monthly accounts, cash flow & balance sheet). IOSS Operational and Capital budget process. IOSS Goals, Objectives, Strategy and Business Plan being developed. Developing Key Performance Indicators (KPI s) to allow stakeholders measure IOSS performance.

24 Moving forward We recognise that: IOSS is owned by and accountable to the people of Sark. The IOSS Board and Management are here to serve the people of Sark. We need to know what you want from IOSS; we want to hear your ideas and suggestions to inform our business plans. phone us call in at the office, or write to us at: Isle of Sark Shipping, Cambridge Berth, White Rock, St Peter Port, Guernsey, GY1 2LN

25 Thank you for taking the time to read our report passenger and cargo shipping services for the residents of Sark and visitors to it