CalMac Ferries’ owner David MacBrayne (DML) has revealed a slump in profits in a year in which it won a number of key contracts including its main business of running lifeline services to the Hebrides.
The company’s chairman highlighted the impact on the firm in its “unsettling” wait for the extension to its £900million contract to operate the Clyde and Hebrides ferry services. But David McGibbon also hailed a “hugely successful year” for the firm after it also won a £1billion contract to operate the Marchwood Military Port in Southampton for the next 35 years.
Both passenger numbers and revenues increased over the past year according to DML’s annual report and accounts for the year to the end of March 2016.
The state-owned ferry and port operator reported passengers up by 2% to 5 million and vehicles by 9% to 1.2million for 2015/16. Total turnover increased from £172million to £190million.
Mr McGibbon said: “This has been another hugely successful year for David MacBrayne. It has been particularly satisfying for me personally to be at the helm during such transformational and exciting times for the company, we really are going from strength to strength.
“Among a year of highlights, winning the Clyde and Hebrides Ferry Service (CHFS) contract is the stand out experience for me. The uncertainty that has surrounded the company since the tender process began has been unsettling for everyone connected to the CalMac family.
“But our bid was recognised as both compelling and innovative in meeting the needs of communities, customers, stakeholders, our partner agencies and the Scottish Government, while offering best value to the taxpayer. In summary, we were simply the best company for the job.”
The company made a loss of £4.6million for the year, up from £2.3million in the red over the previous 12 months.
According to the company this was driven by planned investment in new technology to improve customer service and business development activities including the team to secure the successful Clyde and Hebrides tender, and support the bid and transition costs to run Marchwood Military Port in Hampshire, as part of a new joint venture, Solent Gateway.
“Winning the Marchwood deal will provide a regular income stream for the company over the long term and is a great marker for the future expansion ambitions of the company,” said Mr McGibbon.
“We were up against some of the biggest port and harbour operators in the UK and I’m delighted that we have secured what is a 35 year concession from the Ministry of Defence to support the army and to develop commercial opportunities at the port.
“It is huge endorsement of our harbour handling and logistics management expertise.”
Total numbers employed by the company rose from 1,482 to 1,568 over the course of the year.
Martin Dorchester, managing director of CalMac and chief executive of its parent company David MacBrayne, recently revealed he is to step down from the roles at the end of next March, saying it was the “right time to step down and seek a new challenge”.
