ISLE OF SARK SHIPPING COMPANY LIMITED PUBLIC MEETING ... of Sark Shipping... · •ITV Player Advert –In partnership with Sark Tourism a six week Sark advertisement on ITV Hub aimed

ISLE OF SARK SHIPPING

COMPANY LIMITED PUBLIC

MEETING PRESENTATION27TH JANUARY 2016

“To ensure the sustainable provision of safe, reliable, friendly and efficient

passenger and cargo shipping services for the residents of Sark and visitors to it”

Section 1

Review of Financial Year 2014 – 15

Passenger Volumes and Operational Performance

“To ensure the sustainable provision of safe, reliable, friendly and efficient passenger and

cargo shipping services for the residents of Sark and visitors to it”

Passenger Volumes



• Note :- all figures above are passenger legs (to Sark and from Sark)

Month 2013/14 2014/15 Variance Comment

October 3,763 4,341 578

November 1,327 1,376 49

December 1,386 1,388 2

January 1,038 963 -75

February 837 1,340 503 Weather/Offer

March 1,939 1,471 -468

April 6,341 6,186 -155

May 12,129 12,984 855

June 14,956 15,669 713

July 23,511 22,985 -526 Weather

August 20,954 18,780 -2,174 Weather

September 13,053 11,326 -1,727 Weather

Total 101,234 98,809 -2,425

Summary• Overall volume was -2% (-2,425 passenger legs) in comparison to financial year 2013/14.

• The winter volumes followed the established pattern and volume of several previous years.

• The impact of the adverse weather during late July, August and September account for a significant part of the downturn in

passenger volumes, particularly the Day trip visitor numbers. (see next page).

Weather Cancellations

2013/14 2014/15

October 7 7

November 5 6

December 8 9

January 5 9

February 14 3

March 0 4

April 0 6

May 0 4

June 0 8

July 0 1

August 0 3

September 0 7

Total 39 67

Summer Season

(April to September) 0 29



Number of sailings cancelled due to adverse weather (Guernsey to Sark)

Long Term Passenger Volume



2007 2008 2009 2010 2011 2012 2013 2014 2015

No of Pax 47,371 45,693 45,238 46,983 51,341 48,206 48,658 50,533 49,264

47,371

45,69345,238

46,983

51,341

48,20648,658

50,533

49,264

9 year

average

volume

48,143

passengers

In spite of the adverse weather conditions, and the closure of a number of Hospitality Industry

establishments in Sark, passenger volumes remain stable.

• 49,600 - 5 year average

• 48,143 - 9 year average

6“To ensure the sustainable provision of safe, reliable, friendly and efficient


During the year there was a significant change to the previous Market

Share.

• Day Trip numbers increased by: + 1,312 passenger legs +3%

• Period return numbers decreased by: - 2,981 passenger legs – 2.5%

• Single sector numbers also fell by: - 1,186 passenger legs – 1%

0

20,000

40,000

60,000

80,000

100,000

120,000

2013/14 2014/15

Period Return Staying in Sark

Single ticket (GU to SK & SK to

GU)

Sark Resident and Business

Travel

From Guernsey Day Trip

Passenger Volumes and Market Share

(Passenger Legs)

Detail Market Share



Variance

2012/13 2013/14 2014/15

Day Return (Gsy originating) 43,691 45,380 43,576 -1,804

Day Return (Sark originating) 4,357 4,242 4,080 -162

Group Day Return (Gsy originating) 13,104 13,516 16,394 2,878

Cruise Ship Day Return Passengers in standard sales 4,400 4,800 400

Period Return (Gsy originating) 19,029 19,309 16,545 -2,764

Period Return (Sark originating) 4,145 3,750 4,360 610

Group Period Return (Gsy originating) 978 1,050 833 -217

Single (Guernsey booked) 5,312 5,906 4,110 -1,797

Sark Single (Sark Booked) 4,203 3,478 4,228 750

Total 94,999 101,234 98,809 -2,425

Market Share Legs

Note: All volumes are passenger legs

• Direct booked day trips – reduced by over 1,000 passengers due to weather related impact on sales.

• Group traffic increased significantly, both agent and direct. Weddings, and agent groups (guide and continental air charter driven).

• Period returns reduced, possibly due to hotel closures and Guernsey residents not being aware of the addition of quality guest

accommodation availability during 2015 season (early season negative PR with regard to accommodation availability)

• EX Sark volumes marginally down for the peak season, this could be attributed to a reduction in the number seasonally resident

of hotel staff.

Cargo



Cargo Tonnage by Type *

Empties Skip General Total

2014 581 167 3091 3839

2015 1068 156 2812 4036

Variance 487 -10 -280 197

Freight Revenue

2014 2015 Variance

£416,000 £388,000 -£28,000

Notes:

• Tonnage totals do not include fuel

• 2014 tonnage does not include Freight Charter tonnage

• 2014 revenue includes £14k freight charters

• Cargo tonnage 2015 includes recording of empties Sark – Guernsey

• Fuel shipments values reduced by -£4.3K in 2015

• Recycling paid returns etc. unchanged @£9K

Cargo Volumes



2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

PassengerVessel

45 47 45 45 40 32

CharteredVessel

4778 2995 837 354 257 0

CargoVessel

5449 6136 4026 3871 3542 4004

0

2000

4000

6000

8000

10000

12000

Average

1990 to

2004

cargo

tonnage

• 1991 – Picot Report records 3,800 tonnes of Cargo

• 2003 – Annual report by P Drake records 75 tonnes per week or 3,900 tonnes of cargo

Cruise Ships



Sark Anchored 8 6

Cruise liners offering Sark Visits 30 49

Travelled from Guernsey 2122 2405

Visited Direct 359 519

Total 2481 2924

2014 2015

Cruise Liner Visits 104 119

Cancelled (numbers) 4 4

Cancelled (weather) 1 6

Sales, Marketing, and the Media



• Seafront Sundays – working with Sark Tourism 6 x Sundays. Contact with locals and

visitors.

• “Sea Sark” – available on the vessels, distributed to Hotels and Guernsey Visitor

Centre, Handed out on Seafront Sundays, 12,000 distributed

• Press Editorial and Reader Offers – A close working relationship has been developed

with the Guernsey Press Features Editor and Staff, 6x double page centre page colour

advertorial pieces published (retail value £19K) plus numerous reader offers.

• Ollie Learns (BBC Radio) - 2x slots Saturday show, Learning to Captain an IOSS boat

and Carriage driving.

• ITV Player Advert – In partnership with Sark Tourism a six week Sark advertisement on

ITV Hub aimed at the Guernsey resident. Over 27,000 views and a 2% “click through”

rate

• Direct Mail (Mail Chimp) – IOSS direct e mail database has been increased in size and

we now regularly direct mail offers and promotions

• Hospitality Staff Educational – IOSS and Sark Tourism hosted an “educational Visit to

Sark for Hotel and tourism staff

• Facebook and Twitter – IOSS Facebook page has been split into “information, and

“interest” we continue to grow our number of “friends and followers” Like and share

competitions, and information, open to all who want to postIII.

Isle of Sark Shipping 12

Section 2

Review of Financial Year

2014 –15

and

Budget 2015 –16



Financial Results –

Year Ended 30th September



2015 2014 2013 2012 2011

Passengers 49,264 50,533 48,658 48,206 51,341

Turnover £1,836,963 £1,884,594 £1,820,920 £1,823,414 £2,165,786

Operating Costs £1,209,907 £1,286,083 £1,304,045 £1,543,189 £1,446,101

Overheads £547,393 £545,486 £555,469 £623,769 £551,890

Net Profit/Loss £79,663 £53,025 -£38,594 -£343,544 £167,795

All figures above are extracted directly from the audited accounts.

The main contributory factors to the reduction in operating costs last year were:-

• Fuel – a reduction of £34k;

• Crew & quay wages also reduced by £25k;

• Sark crane services by £11k.

• A continued concentration of effort on cost control.

2012 overheads were higher than the annual average due to £40k spent on upgrading the software and hardware and

an extra £24k in directors salaries. 2012 operating costs much higher than average – vessel overhaul and repair costs

£251k (average 2013-2015 £109k); and crew wages etc £703k (average 2013-2015 £580k)

Liquidity at 30th September



2015 2014 2013 2012 2011

Cash, Bank & Debtors £317,572 £259,245 £243,177 £288,757 £664,259

Less: liabilities £173,716 £326,838 £502,710 £644,395 £773,977

Surplus/Deficit £143,856 -£67,593 -£259,533 -£355,638 -£109,718

BUDGET YEAR ENDED

30 SEPTEMBER 2016



Budget Actual

Year End 30.9.16 Year End 30.9.15

Passengers 51,344 49,264

Turnover £1,839,784 £1,836,963

Operating costs £1,226,469 £1,209,907

Overheads £561,398 £547,393

Net Profit £51,917 £79,663

Previous year Budget Performance & This years budget.

For the first Quarter the Company’s performance is better than budget.

BUDGET YEAR ENDED

30 SEPTEMBER 2016

High level commentary with regard to 2016 budget:

• Budget assumption – no increase in passenger fares.

• Wage / salary increase of 0.7 % with effect from 1 Jan

2016 (first rise since June 2013)

• General Manager, Executive Director and Non Executive

Director fees and salaries are £83,660 (2015 £81,537)

• 2016 Budgeted Operational costs increased vs. 2015

predominantly due to:

• Vessel Stability book updates £ 22,500 in 2016 vs nil last year

• Venture Overhaul £ 40,000 in 2016 vs. £15,000 last year



Section 3

Moving Forward



IOSS moving forward

Chief Pleas review of IOSS

• Chief Pleas September 2015 meeting – accepted Yan Milner's Report relating to Sark Chief Pleas relationship with the Company and adopts the recommendations.

• The recommendations will ensure:• Stronger corporate governance structure (Board &

Shareholder)

• IOSS has stronger and more formal relationships with Chief Pleas as shareholder.

• IOSS business and operations are open and transparent.



IOSS moving forward -

Strengthened and more formal

relationships with CP as shareholder



IOSS moving forward

Strengthening relationship with CP -

Progress

• Mission statement developed and adopted

“To ensure the sustainable provision of a safe, reliable, friendly and efficient passenger and freight shipping service

for the residents of Sark and visitors to it”

• Regular meetings with Sark Shipping Committee (developing a Service Level Agreement)

• Regular meetings with Tourism Committee (collaboration re the IOSS Sales and Marketing Plan – IOSS adopting the Sarklogo)

• Regular flow of financial information to Sark Finance &Resources Committee



IOSS moving forward

Strengthened Corporate Governance – IOSS

Board

• Two Executive Directors – to manage the business efficiently, to

develop strategy and execute the agreed business plan.

• Paul Garlick, Managing Director

• Paul Burnard, Finance Director

• Four Non Executive Directors – to contribute experience and

expertise, to monitor performance and constructively challenge

executive proposals.

• Julie Mann (ex Executive Director)

• Advocate Mark Dunster

• Colonel Richard Graham

• Captain Peter Gill



IOSS moving forward

Openness & Transparent

• Initiatives

• IOSS monthly operational reports.

• IOSS monthly financial pack (monthly accounts, cash flow &

balance sheet).

• IOSS Operational and Capital budget process.

• IOSS Goals, Objectives, Strategy and Business Plan being

developed.

• Developing Key Performance Indicators (KPI’s) to allow

stakeholders measure IOSS performance.



Moving forward • We recognise that:

• IOSS is owned by and accountable to the people of Sark.

• The IOSS Board and Management are here to serve the people of Sark.

• We need to know what you want from IOSS; we want to hear your ideasand suggestions to inform our business plans.

email [email protected];

phone us 01481 724059

call in at the office,

or write to us at:

Isle of Sark Shipping,

Cambridge Berth, White Rock, St Peter Port, Guernsey, GY1 2LN





Thank you for taking the time to read our report

Documents

ISLE OF SARK SHIPPING COMPANY LIMITED PUBLIC MEETING ... of Sark Shipping... · •ITV Player Advert –In partnership with Sark Tourism a six week Sark advertisement on ITV Hub aimed