Port sees 26% profit rise despite drop in turnover
The Port of Milford Haven made pre-tax profits of £5.6m last year despite a fall in turnover. The 26% jump in profits came against a backdrop of strong investment in the marine, leisure, tourism and marine renewable energy sectors.
Turnover for the year was £25.3m. Cargo throughput was slightly lower than the previous year at 34.9 million tonnes.
There was a 26% reduction in the throughput of liquified natural gas (LNG) and a further fall in volumes is expected to impact on results for this year.
In 2016 the Milford Waterfront brand was officially launched. Milford Waterfront is a flagship development for the Port and has the potential to accommodate approximately 380,000 sq ft of commercial, leisure and premium residential space.
It is expected to create in the region of 600 new jobs and provide a significant uplift to the local economy.
Milford Marina celebrated its 25th anniversary during the year. Visitors enjoyed a busy calendar of events, as well as new heritage boat tours that are now operating from the marina.
Significant investment was made on the marine side of the business. A state-of-the-art marine navigation simulation suite was installed, providing the Port’s own marine professionals with training software as well as being able to offer it to external bodies and eventually market it to a global audience.
Investment was also made in a fleet of two new pilot vessels, St Brides and St Davids, with a third, St Govans, expected to arrive later this year.
Volumes at Pembroke Dock Ferry Terminal continued to show annual growth on both the freight and passenger side, as did volumes of imports and exports at Pembroke Port.
Alec Don, chief executive at the Port, said: “Our staff are at the heart of all we do at the Port and they continuously go the extra mile to ensure that we provide a safe and efficient service 24 hours a day, seven days a week, 365 days of the year.
“It is this dedication and collaboration that has assisted the Port in producing a pleasing set of results in a range of sectors in what can sometimes be turbulent markets.”
He added that 2017 “is set to be considerably more challenging”, with significantly reduced volumes of LNG currently affecting the business and a substantial increase in pension liabilities.
He went on: “It is for these aspects of volatility we have ensured as a business that we have a strong balance sheet and are pursuing growth and development in the infrastructure and property parts of our business.”
The Port continues to be optimistic about the prospects for the marine renewables sector in Pembrokeshire, which was cemented by the creation of a Marine Hub at Pembroke Port.
This is despite the fact that DeltaStream developer Tidal Energy went into administration last year.
Following the approval of the £1.3bn Swansea Bay City Deal in March by the Prime Minister, the Pembroke Dock Marine project is now expected to move forward and activity within the renewables industry as a whole is expected to increase in earnest over the coming months and years. THE FTSE 100 edged higher and the pound was mixed as investors awaited details of Donald Trump’s plans for a massive US corporate tax cut.
Sterling was hovering near the flatline against the US dollar at 1.283, but was up 0.5% versus the euro at 1.180.
London’s blue-chip index, meanwhile, ended the day up 0.18% or 13.08 points at 7,288.72, while the FTSE 250 closed at a fresh record high at 19,678.82 points, up 0.49% on the day.
It comes after it was confirmed the US administration will call for a cut in the corporate tax rate from 35% to 15%.
In Europe, the French Cac 40 and German Dax rose 0.19% and 0.05%, respectively.
In oil markets, Brent crude rose 0.2% to US $52.07 per barrel (£40.56), after US Energy Department data showed a bigger-than-expected drop in US crude inventories.
In UK stocks, London Stock Exchange Group shares rose 41p to end the day at a record closing high of 3,348p, after it reported a 17% rise in first quarter profit to £409.1m, and said it was “exploring” new investments just a month after the collapse of the Deutsche Borse merger.
Standard Chartered shares jumped 29.2p to 757.3p after “good progress” in its turnaround efforts as first-quarter pre-tax profits nearly doubled to US $990m (£772m) after lower bad debts and cost-cutting.
Lloyds Banking Group rose 0.46p to 67.41p despite news it will make compensation offers to victims of fraud at the hands of former HBOS staff next month, which could total around £100m.
GlaxoSmithKline fell 33p to 1,566p despite reporting that total operating profits jumped by £995m to £1.7bn in the first quarter, thanks to sales of new drugs and a currency boost from the Brexit-hit pound.
Royal Bank of Scotland fell 0.7p, to 252.7p after news it could face a parliamentary inquiry into spiralling legal costs, set to hit £125m, used to defending itself and former boss Fred Goodwin in a case brought by shareholders.
Boohoo shares fell 4.25p to 185.5p after pre-tax profits rose 97% to £30.9m in the year to February 28, while revenue also soared 51% to £294.6m.
Biggest FTSE 100 risers were Standard Chartered, up 29.2p to 757.3p, Croda International up 138p to 3,797p, Merlin Entertainments up 14.1p to 499.7p, and Hikma Pharmaceuticals up 38p to 1,943p. Biggest fallers were GlaxoSmithKline down 33p to 1,566p, GKN down 6.5p to 359.6p, Mediclinic International down 11.5p to 731p, and BT Group down 3.4p to 310.05p.