Pensions bill ‘could sink’ P&O ferries

A BALLOONING pension shortfall at P&O Ferries could leave the firm struggling to stay afloat, its auditor has warned.

The ferry and logistics business, owned by Dubai ports operator DP World, reported a £14.7million overall loss last year after being pushed into the red by a £27.9million charge for pension contributions.

The company’s accounts warned that an increase in its pension liabilities and ‘unprecedented levels of uncertainty’ due to a possible No Deal Brexit could threaten the firm’s future. KPMG auditor Tom Eve said his report did not ‘guarantee that the company will continue in operation’.

P&O Ferries participates in three pension schemes, which had a total deficit of £92.5 million at the end of 2018, up from £67.1million the previous year.

P&O Ferries made a pretax profit of £13.2million before the pensions charge, the newly published accounts reveal, and turnover rose by £10.6 million to £145.2 million.

P&O Ferries declined to comment.