Jump to content
BobCrox

UK withdrawal from the EU: Effect on BF

Recommended Posts

BAI close their accounts on the 31st October each year. The website www.société.com provides the turnover details for each year. (I believe the figures to be correct but obviously there may be slight discrepancies)

https://www.societe.com/bilan/bretagne-angleterre-irlande-927250217201710311.html

In 2014 turnover was 375,920,200 € with a net profit of 4,028,000 €

In 2015 turnover was 465,403,000 € with a net profit of 26,396,500 €

In 2016 turnover was 452,751,300 € with a net profit of 23,807,700 €

In 2017 turnover was 431,264,100 € with a net profit of 6,968,800 €

In 2018 turnover was 441,810,800 € with a net profit of 9,425,800 €

So from 2015 to 2018 turnover dropped by about 24 million euros. Profit in the same period fell far more as a proportion of turnover.

Ed

  • Like 2

Share this post


Link to post
Share on other sites

I’d have said that these figures show turnover to be fairly steady - fluctuating around €445m give or take 3 or 4%.  Profit is much more variable, indicating wild variations in costs from year to year.

Share this post


Link to post
Share on other sites
2 minutes ago, Gareth said:

I’d have said that these figures show turnover to be fairly steady - fluctuating around €445m give or take 3 or 4%.  Profit is much more variable, indicating wild variations in costs from year to year.

Agreed, 25m euros as a proportion of the total is fairly negligible. The website does also give employee numbers which might account for some of the costs but obviously there is no indication of the total distances sailed or associated fuel costs or unexpected expenditure due to mechanical breakdowns etc. Ed. 

Share this post


Link to post
Share on other sites

Having said that, the €25m figure is the ballpark where the profit lies, so I can quite see that 3 or 4% variations in turnover could easily result in 50 or 100% variations in profit, if costs are fairly steady from year to year.  So it may just be a case that the level of the profit is driven by small margins in the variation of turnover.  Set against that, it doesn’t take much by way of unexpected additional costs to destroy the profit figures for a year.

What the figures will look like for 2019 is anybody’s guess.  But I wouldn’t mind betting they will be ghastly.

Share this post


Link to post
Share on other sites

So what is Jean-Marc Roué prattling on about?

In the article above he says:

 "There have been uncertainties for four years. And it's been four years that we lose 25 million in turnover per year. That is what I informed the minister on Friday."

 That to me reads as an overall €100m loss in turnover since 2015 however reading Ed's figures the overall loss in turnover since 2015 is €24m.

Since 2014 there's net increase in turnover of €66m.

  • Like 1

Share this post


Link to post
Share on other sites

It's not rocket science, the 2 year period where BF made a reasonable profit (2015 - 2016) coincides with our currency equating to somewhere between 1.20€ and 1.40€ to the Pound. When this figure is between parity and 1.20€ , ie roughly July 2016 until the present day then it's no wonder the bottom line takes a hit. Exchange rates are crucial to BF as their costs are mainly in Euros, their revenue in Sterling. Without wishing to point out the obvious £100 million revenue at £1 = 1.30€ gives them 130 million Euro, that plummets to only 110 million at £1 = 1.10€ and explains the significantly better results for the 2 years in question.

2019 results will make interesting reading but I'm not convinced they will be ghastly, especially as the UK government has been lobbing them nice chunks of money to cater for a possible "No Deal" scenario. The people I speak to regularly at BF are obviously concerned, but at the same time postive for the future - only time will tell.

Chris

  • Like 1

Share this post


Link to post
Share on other sites

All depends on how much the PA repairs have cost them (though maybe the bulk of that may not be reflected until the 2020 figures), how much they have had to pile into FSG, how much of the money received from HMG has had to be used to compensate customers that were messed around, how much money they have frittered on the rebranding and new website, and how much turnover has been lost due to Brexit uncertainty and concerns over the unrest in France.  There is still the money used for the purchase of Condor to come out, as well, though I suspect again that this may not show up until the 2020 figures.

Share this post


Link to post
Share on other sites

If sterling is such an issue why not switch to euros only on board, is it due to the disparate exchange rate they use on the ships when charging for goods? @Cabin-boy can give us a run down on that.

Share this post


Link to post
Share on other sites

I imagine the cost of PA repairs will be covered by insurance, it's a highly unusual event having an engine catch fire but I agree there are a lot of variables and we won't know until figures are finally released. I'm not an accountant but there are ways of making the situation appear less bad than they really are in a difficult year, and less good when it's all plain sailing again.

Chris

  • Like 1

Share this post


Link to post
Share on other sites

I've not been on board a BF ship since last February so I'm not sure what the current rate is but they must fix it at a certain point and then use that for a number of months to avoid having to reprint menus and bar price lists etc. Chris is on board every week or so and will know better what is going on. I agree that just having one price in euros would make more sense as once you've booked your ticket you are a captive customer. 

BF can't be struggling that much of course as the corporate jet is still flying around the place and was in Southampton early last week. 

Ed. 

Share this post


Link to post
Share on other sites

BF like the airlines have the option to `hedge` both their currency and fuel. They forward buy for up to two years ahead and the price is set. That way in unstable times, they have a certainty of price (fuel and currency) . The trick of course is making sure you `hedge` at the right time and at the right price, which is why you hire (or should do) the bright young things in your Finance Dept.

Share this post


Link to post
Share on other sites

Hedging must be nigh on impossible with Donald at the helm.....

Whoops, message to self, must not get political, Gareth has his big stick at the ready....:D

Chris

  • Like 1

Share this post


Link to post
Share on other sites

That bookings are down is a fact BUT really, profit and loss relies on income in and costs to get to cover that.
Demand, pricing and currency and the cost of debts etc. influence that.

Then there is the value of their assets. Is something worth what a new one would cost, worth what its present/future monetary value is, worth x amount on what returns it makes, its scrap value or even a value based of earning revenue etc.

Mix all this into an accountants pot and they will tell you all is fine or not depending on what they want as a result to be made public or kept confidential.

Its in times like this that confidence is needed. The opposite will only pull things down.

Toodle pip

Stu

Edited by straightfeed
  • Like 2

Share this post


Link to post
Share on other sites

Back to the 25 Million loss on turnover per year, I imagine that it is an average turnover loss for each year when comparing with 2015 which was a bit of a high point & would include the 2019 figures.

However it should all be clear by the end of this year whether the ferry markets will improve or get significantly worse - it will depend on how friction-less trade is going to be which could definitely affect accompanied freight sailings. In addition  the prospect of the Norman Fishermen blockading the ports cannot be ruled out if they don't get the same access to British waters as at present.

Share this post


Link to post
Share on other sites
1 hour ago, David Williams said:

In addition  the prospect of the Norman Fishermen blockading the ports cannot be ruled out if they don't get the same access to British waters as at present.

Typical Norman response..Blockade French ships in French ports whilst their dispute is ongoing against the UK..If they were serious they could try blockading Brixham or even Plymouth..Most unwise to try it on with The Queens Harbour Master though. Blockading their own ports is risk free though. Never going to get arrested or their boats confiscated.

  • Like 1

Share this post


Link to post
Share on other sites

They are more likely to try and stop UK boats offloading their catch in French ports. The statistics I saw last week (and I apologise if these are not exact) were something like: the UK controls 40% of all EU fishing grounds but sells 70+% of its catch to the EU. 

Ed. 

Share this post


Link to post
Share on other sites
4 hours ago, Fine Whine said:

I imagine the cost of PA repairs will be covered by insurance, it's a highly unusual event having an engine catch fire but I agree there are a lot of variables and we won't know until figures are finally released. I'm not an accountant but there are ways of making the situation appear less bad than they really are in a difficult year, and less good when it's all plain sailing again.

Chris

Chris, I would be surprised if a marine insurance policy covered a mechanical breakdown. Usually only cover something caused by an external source. BF may have a wider mechanical breakdown cover, but that would most likely be extremely expensive.

  • Like 2

Share this post


Link to post
Share on other sites
4 hours ago, David Williams said:

In addition  the prospect of the Norman Fishermen blockading the ports cannot be ruled out

The Norman fisherman are confined to the vestiges of the Norman Empire, The Channel Islands.

Share this post


Link to post
Share on other sites
On ‎09‎/‎02‎/‎2020 at 16:11, BobCrox said:

The Norman fisherman are confined to the vestiges of the Norman Empire, The Channel Islands.

At the moment they seem to be confined to Bantry Bay for the past three days taking shelter from Storm Ciara .

Share this post


Link to post
Share on other sites

An article from 20 minutes, which reveals they are postponing ordering a replacement for the MV. Bretagne.

Text below via Microsoft Translate....

Brexit: 'In the fog', Brittany Ferries boss worries about future
ECONOMY Jean-Marc Roué, the boss of Brittany Ferries, a shipowner based in Roscoff, received Minister Jean-Yves Le Drian on Friday in Saint-Malo. He took the opportunity to express his fears:

It alone embodies the bond that will unite Great and "little" Brittany forever. Accustomed to commuting between the French and English coasts, Brittany Ferries is suffering the full consequences of Brexit. His boss Jean-Marc Roué did not fail to remind the Minister of Europe and Foreign Affairs Jean-Yves Le Drian during his visit on Friday for the inauguration of the shipowner's new offices in Saint-Malo. Worried about the future of the company based in Roscoff (Finistère), Jean-Marc Roué confided in 20 Minutes. No filter.

You had anticipated every possible Brexit scenario. No reason?
Yes, we worked a little for nothing. We had already taken a plum in 2016 because of the fall in sterling. Our sales had fallen by 20%. The problem is that since then, we have been sailing on sight. We're in constant fog.

Worried about the end of the transition period to 31 December?
Yes, because we're in the dark. No one knows anything. I expect our elected officials to reassure us and reassure our British customers. There have been uncertainties for four years. And we've been losing 25 million sales a year for four years. That is what I told the minister on Friday.

OUR BREXIT DOSSIER
The trend for 2020 is not optimistic...
Bookings are not in the same place in 2019, down about 5%, down from 4.5% last year. This is the case in both directions, whether to or from the United Kingdom. And 2021 won't be good either, I'm telling you. When visitors are in uncertainty, they hesitate to come. If we don't do anything, if we don't promote our territories, they'll go somewhere else! I feel like I'm the only one who says it. Yes, shipowners like us will suffer, but we are not the only ones. Hotels, shops, industry, agri-food, they must feel it too.

What do you expect from the French government?
Above all, we must reassure, explain to people that they can always come to travel to Europe, that there is no change in the formalities today. But it is also necessary to convince the European authorities to facilitate the transit of passengers and goods. It is up to our French elected officials to make that case. We saw it with the Breton fishermen around Guernsey, there are too many areas of blur.

However, the situation does not prevent you from moving forward. You will invest heavily to renew your fleet.
We hadn't invested in a long time so our debt is low. We have an ambitious but prudent acquisition plan because we remain a small business. We ordered three ships (the Honfleur, the Kerry and the Santoa, three ships powered by liquefied natural gas). But we're going to have to postpone the order of Brittany 2. It's been waiting for a long time but I can't go and convince the bankers without a proven business plan. We're not told anything. As of January 1, 2021, I don't know how we're going to work.

You have just changed the route of your main freight link between Ireland and Spain. Can you explain why?

We had created a line between Cork and Santander in 2018, in anticipation of Brexit. We wanted to assert our ability to keep pace on schedule. Our goal was to transport more than 28,000 trucks a year, but we are not there. We decided to move the line between Rosslare (Dublin) and Bilbao in order to get closer to the denser freight areas. Our goal is to get as many trucks off the roads as possible. We transport about 40,000 a year in total. But we can do better.

https://www.20minutes.fr/economie/2713491-20200208-brexit-brouillard-patron-brittany-ferries-inquiete-avenir

Share this post


Link to post
Share on other sites
14 minutes ago, Gareth said:

This has already been discussed in the New Build thread.

Ah, ok. This article is from last week and I didn't see any recent reference to it in the new build thread. And of course, the bulk of the article is about Brexit so thought this was the best place to post it 😉 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...