To ensure the sustainable provision of safe, reliable, friendly and efficient passenger and cargo shipping 1
1) Introduction 2) IOSS financial performance 2015-16 and 2016-17 Year to Date 3) IOSS operational performance 2015-16 and 2016-17 Year to Date 4) IOSS Summar and Future Plans 5) Questions Please can we keep questions to the end if possible. 2
2012 2013 2014 2015 2016 Turnover 1,823,414 1,820,920 1,884,594 1,836,963 1,911,990 Operating Costs 1,543,189 1,304,045 1,286,083 1,209,907 1,269,739 Overheads 623,769 555,469 545,486 547,393 528,587 Net Profit/Loss - 343,544-38,594 53,025 79,663 113,664 200,000 2015-16 Budget 51,915 100,000 0 ( 100,000) 2012 2013 2014 2015 2016 ( 200,000) ( 300,000) ( 400,000) 3
LIQUIDITY AT 30 SEPTEMBER 2016 2012 2013 2014 2015 2016 Cash, Bank & Debtors 288,757 243,177 259,245 317,572 536,709 Less: liabilities 644,395 502,710 326,838 173,716 156,338 Surplus/Deficit - 355,638-259,533-67,593 143,856 380,371 4
BUDGET 2016-17 vs. ACTUAL 2015-16 Budget Actual 2016-17 Year End 30.9.16 Turnover 1,855,797 1,911,990 Operating costs 1,279,985 1,269,739 Overheads 519,935 528,587 Net Profit/(Loss) 55,877 113,664 5
ACTUAL v BUDGET TO END OF FEBRUARY 2017 Actual Budget Variance Passengers 4,791 4,454 337 Turnover 303,508 283,526 19,982 Operating costs (391,579) (400,671) 9,092 Overheads (199,536) (213,322) 13,786 Net Loss (287,607) (330,467) 42,860 6
Isle of Sark Shipping Company Limited Public Meeting April 2017 Hand over to Yan Milner to hear operational performance 2015-16 & 2016-17 Year to Date 7
103,000 102,000 101,000 100,000 99,000 98,000 97,000 96,000 95,000 94,000 93,000 92,000 91,000 90,000 102,471 101,234 98,809 98,743 96,185 2012/13 2013/14 2014/15 2015/16 Average Previous three year average Note :- Figures above are passenger legs (to Sark and from Sark) Commentary: Number of passenger legs up 3.5% versus 2014/15 (an increase of 3,662 passenger legs). Passenger volume increase is very encouraging when considered against the background of Guernsey staying visitor numbers being down 7% (2016 = 182116 and 2015 = 195115) Fine weather in August and September coupled with Sark Tourism and IOSS promotions brought the passenger numbers to over 102,000 passenger legs. 8
In line with the increases in volume there has been an encouraging increase in ticket revenue. This is an indication that the price point for fares is to some extent elastic and that the market size can be increased whilst maintaining fare levels. 1,340,000 1,320,000 1,300,000 1,280,000 1,260,000 1,240,000 2012/13 2013/14 2014/15 2015/16 1,220,000 1,200,000 2012/13 2013/14 2014/15 2015/16 9
Day trip traffic increased. Cruise ship excursion volumes increased Staying visitor numbers increased services for the residents of Sark and visitors to it 10
The base cargo tonnage is now at a similar level to that experienced in the early 2000s. This is likely to represent the base cargo for Sark i.e. with limited capital projects, the current population and a limited number of seasonal workers. Total Cargo Tonnage 2016 4553 2015 4036 2014 3839 Charter Cargo Tonnage 2016 968 2015 0 2014 257 Base Cargo Tonnage 2016 3585 2015 4036 2014 3582 Notes: Tonnage totals do not include Sark Electricity Company fuel shipped The large charter volume in 2016 was related to construction projects in Sark - the underlying base cargo remaining in the region of 3,500 to 4,000 metric tonnes. Fuel shipments have decreased from 57,000 litres in 2015 to 47,000 litres in 2016 11
Passenger fares No increase in passenger fares in 2015/16. Freight rates No increase in freight rates in 2015/16. Vessel availability 98.6% average vessel availability. Levels of service; only one sailing cancelled due to circumstances other than weather more than 99% of sailings without delays 75 additional passengers sailing legs (versus the published timetable) 49 additional freight sailing legs (versus the published timetable) only 14 registered customer complaints. 12
Winter Passenger Volumes 12,000 11,500 11,000 10,500 10,000 9,500 2012/13 2013/14 2014/15 2015/16 2016/17 Average Winter Passenger Volumes have recovered to 2011/12 levels. Season has extended into October (2016 October volume 20% above 3 yr average). Extension of Saturday double rotations and Sunday sailings have had a positive impact on numbers and revenue without a material increase in costs. Sales and Marketing Press Advertising Campaign has been renewed for 2017. Sea Sark Magazine has been printed and is being distributed Seafront Sunday dates have been confirmed and IOSS will be present for 2017 along with Sark Tourism IOSS is continuing to work with both Sark and Guernsey Tourism to promote Sark. Cruise ship calls 2016 37 calls 2017 59 calls booked. (some of the excursions in 2017 will be handled by Bailiwick Tours and are not included in the call count) 13
Isle of Sark Shipping Company Limited Public Meeting April 2017 Hand over to Paul Garlick for a summary and for future plans 14
It was a busy, challenging and successful year: Visitor numbers up we would like to thank the Tourism Committee and all of those in the tourism sector for that success; please keep up the good work. High workload in all core business areas; passenger service, freight service, agency sales, excursions, tendering - thanks to the IOSS team for responding to the challenge. Cost savings secured for the future; the new management structure and migration to more seasonal model. Great performance over the last couple of years, but there is still work to do; no firm plans for vessel refits and or replacements. We need to focus resource on to long term maintenance plans, asset management plans and financial forecasts. 15
Systems have been put in place to cement relationships with our stakeholders; to make our operations and activities transparent; to set targets and monitor our performance versus those targets, for example: Agreed Mission, Goals and Objectives. An agreed Strategy and Business Plan (we are now in our second cycle). An agreed annual budget, Opex and Capex (again we are in our second cycle). An agreed set of Key Performance Indicators (KPI s) have been included into a monthly report which is circulated to the F&R, H&S and Tourism Committees. Monthly Financial reporting to the Sark Treasurer and the F&R, H&S and Tourism Committees. The development of a Service Level Agreement (yet to be finalised). 16
Significant initiatives that we will be focusing on over the next few years: Further optimisation. Initiatives to keep pace with H&S best practice (Safety Management System, Accident and Incident reporting, investigation and tracking, Safety briefings, promoting an open no blame culture). Development and implementation of a corporate risk assessment, risk management and reporting system. Development of long run maintenance and asset management plans. Development of long run financial projections, base case and sensitivities. 17
2017/18 Draft timetable is available (copies are available to take away, comments and feedback is welcomed) We recognise that IOSS is owned by and is accountable to the people of Sark. We are here to serve you, we are keen to hear you ideas and suggestions, there are various ways to contact us: Call us 01481 724059. Email us: info@sarkshipping.gg; paul.garlick@sarkshipping.gg; Yan@sarkshipping.gg Pop into the office and or write to us at Isle of Sark Shipping, White Rock, St Peter Port, Guernsey, Channel Islands, GY1 2LN. Feel free to stop me or Yan and have a chat. 18
Thank you for giving us the opportunity to make the presentation. Are there any questions? 19