All shipshape at AB Ports

Published: 15:48 Wednesday 07 September 2005
By: Cliff Feltham, Companies Correspondent

Steady as she goes appears to be the message from Associated British Ports whose 21 ports handle almost a quarter of the UKs shipping trade.

There were a few minor squalls for the former state-owned organisation such as a fall in roll-on/roll-off volumes at Immingham following the loss of a customer but overall the core ports and transport side performed well underpinned by a healthy 5.7% rise in tonnage handled.

Group pre-tax profits for the six months ended 30 June came in 8% higher at 67 million. The dividend rises 4% to 7.2p.

The shares (ABP) rose 24p to 490p having traded in a 432p to 514p band over the last 12 months. At the current price the business is valued at 1.4 billion.

The ports and transport business now accounts for 88% of profits topped up by property trading although this tends to be patchy depending on when the sales take place.

AB won six new long-term contracts in the first half which will involve an investment of around 20 million. Grimsby and Immingham saw exceptionally strong growth in volumes of coal imports, steel exports and a recovery in grain exports which helped to outweigh the anticipated fall in roll-on/roll-off volumes.

At Hull and Goole, there was strong growth in container traffic and coal imports partly offsetting a reduction in ferry passenger traffic. Revenue grew 3.8% at Southampton.

The cruise business continued to grow with the port handling around 263,000 passengers. But there was a fall in container traffic mainly because of less demand from UK retailers who were going through a period of de-stocking.

AB Ports intends to invest over 400 million in its ports over the next ten years. The latest investment at Immingham nears completion and will cost around 87 million.

Amports, its smaller transport business in the US handling car imports and exports, suffered from a reduction in vehicle volumes leaving profits down 22% at 1.8 million.


AB won six new long-term contracts in the first half which will involve an investment of around 20 million. Grimsby and Immingham saw exceptionally strong growth in volumes of coal imports, steel exports and a recovery in grain exports which helped to outweigh the anticipated fall in roll-on/roll-off volumes.

At Hull and Goole, there was strong growth in container traffic and coal imports partly offsetting a reduction in ferry passenger traffic. Revenue grew 3.8% at Southampton.

The cruise business continued to grow with the port handling around 263,000 passengers. But there was a fall in container traffic mainly because of less demand from UK retailers who were going through a period of de-stocking.

AB Ports intends to invest over 400 million in its ports over the next ten years. The latest investment at Immingham nears completion and will cost around 87 million.

Amports, its smaller transport business in the US handling car imports and exports, suffered from a reduction in vehicle volumes leaving profits down 22% at 1.8 million.

Shares in Associated British Ports added 5.75p to 531p after Morgan Stanley upgraded its stance on the stock to "equal weight" from "underperform". The broker was upbeat on the growth prospects for the group and said that earnings-per-share growth was set to accelerate. It said that this was based on recent investments and the fact that operational and financial risks remained limited, despite a weakening UK economy

A very bright and welcome light in the gloom this morning as the conditional bid at 810p materialises ..... I hope at least a good few of you are also invested here