FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of June, 2002
CENARGO INTERNATIONAL PLC
(Translation of registrant's name into English)
Puttenham Priory
Puttenham
Surrey GU3 1AR
United Kingdom
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
----- -----
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
----- -----
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Set forth herein is Cenargo International Plc's quarterly report for the
period ended March 31, 2002 containing a Management's Discussion and Analysis of
Financial Condition and Results of Operation and Unaudited Consolidated
Financial Statements.
CENARGO INTERNATIONAL PLC
QUARTERLY REPORT
MARCH 31, 2002
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL Depreciation for the 2002 quarter has
increased by 0.3 million pounds sterling to
Cenargo, an English company, is a diversified 2.2 million pounds sterling compared to 1.9
international transportation group specialising million pounds sterling in the 2001 quarter.
in European freight and passenger ferry This mainly arises as a result of the
services, international ship owning and inclusion of capital costs of Lagan and
chartering, the movement of surface and Mersey Viking purchased in March 2001.
airfreight and the management of freight
logistics. General and administration expenses for the
2002 quarter increased by 1.0 million pounds
RESULTS OF OPERATIONS sterling to 3.1 million pounds sterling
compared to 2.1 million pounds sterling in
Three months ended March 31, 2002 compared to the 2001 quarter. This partly arises from
three months ended March 31, 2001. increased activities in logistics with the
leasing of additional premises at Milton and
Operating Revenues Heston and the appointment of a management
team responsible for the development of the
Operating revenues decreased in the second logistics activities. It also reflects
quarter ended March 31, 2002 (the `2002 increased expenditure on marketing, sales
quarter') by 1.4 million pounds sterling to 28.3 and computer systems in relation to the
million pounds sterling compared to 29.7 million Irish Sea.
pounds sterling in the second quarter ended
March 31, 2001 (the `2001 quarter'). The Primarily as a result of these developments
decrease comprises a 1.6 million pounds sterling total operating expenses increased by 2.0
reduction in Irish Sea revenues, and a 0.2 million pounds sterling to 28.5 million
million pounds sterling increase in logistics pounds sterling for the 2002 quarter
and other income. The reduction of 1.6 million compared to 26.5 million pounds sterling for
pounds sterling in Irish Sea revenues is mainly the 2001 quarter.
attributable to operational problems with the
company's vessels coinciding with the decision Net Operating Income
to change ship managers and the consequent loss
of customer confidence and support. It is also As a result of the foregoing factors net
attributable to increased competition. The operating income decreased by 3.4 million
increase of 0.2 million pounds sterling in pounds sterling to an operating loss of 0.3
logistics' revenues represents increased levels million pounds sterling for the 2002 quarter
of business from the group's logistics' compared to net operating income of 3.2
operations. million pounds sterling in the 2001 quarter.
Operating Expenses Other Income/ Expenses
Vessel and other operating costs increased by Interest expense in the 2002 quarter
0.2 million pounds sterling to 22.5 million increased by 0.2 million pounds sterling to
pounds sterling compared to 22.3 million pounds 3.5 million pounds sterling compared to 3.3
sterling in the 2001 quarter. This is mainly million pounds sterling in the 2001 quarter.
attributable to the extra costs incurred in ship This mainly represents the costs of the
maintenance and repair as a result of the financing of Lagan and Mersey Viking
operational problems mentioned above. It also purchased in March 2001.
includes the start up costs arising from the
expansion of the company's warehousing Net Loss
facilities in the South Midlands and South East
of the United Kingdom at Milton and Heston As a result of the foregoing factors the net
respectively. loss increased by 3.7 million pounds
sterling to breakeven in the 2002 quarter,
compared to breakeven in the 2001 quarter.
Six months ended 31st March 2002 compared to
six months ended 31st March 2001.
Operating Revenues Primarily as a result of these developments
the total operating expenses increased in
Operating revenues in the six months ended March the 2002 period by 0.5 million pounds
31, 2002 (the `2002 period') decreased by 0.5 sterling to 56.9 million pounds sterling
million pounds sterling to 59.2 million pounds compared to 56.4 million pounds sterling in
sterling compared to 59.7 million pounds the 2001 period.
sterling in the six months to March 31, 2001
(the `2001 period'). The decrease comprises a Net Operating Income
reduction of 1.1 million pounds sterling in
Irish Sea revenues and an increase of 0.6 As a result of the foregoing factors net
million pounds sterling in logistics' revenues. operating income decreased by 1.0 million
pounds sterling to 2.3 million pounds
The reduction in Irish Sea revenue is mainly sterling in the 2002 period compared to 3.3
attributable to the operating difficulties million pounds sterling in the 2001 period.
incurred mainly during the Quarter to 31 March
2002 (see above). The increase in logistics'
revenues is mainly attributable to increased
levels of business. Other Income / Expenses
Operating Expenses Interest expense in the 2002 period
increased by 0.7 million pounds sterling to
Vessel and other operating expenses decreased in 7.1 million pounds sterling compared to 6.4
the 2002 period by 1.4 million pounds sterling million pounds sterling in the 2001 period.
to 46.0 million pounds sterling compared to 47.4 This mainly represents the cost of the
million pounds sterling in the 2001 period. This financing of Lagan and Mersey Viking
reduction takes into account the benefit of purchased in March 2001.
owning the Mersey and Lagan Viking from March
2001 rather than chartering them as previously. Net Loss
The full reduction is offset by significant
extra and largely non recurrent costs connected As a result of the foregoing the net loss
with the company's vessels associated with the for the 2002 period increased by 1.4 million
operational problems mainly in Quarter 2. The pounds sterling to 3.3 million pounds
2002 period also includes the additional sterling compared to 1.9 million pounds
operating costs relating to the expansion of the sterling in the 2001 period.
company's warehousing facilities. Depreciation
for the 2002 period increased by 0.5 million Liquidity and Capital Reserves
pounds sterling to 4.3 million pounds sterling
from 3.8 million pounds sterling in the 2001 Total shareholders' equity at March 31, 2002
period. This mainly reflects capital costs was 20.0 million pounds sterling compared to
associated with the Lagan and Mersey Viking. 24.5 million pounds sterling at March 31,
2001. The decrease of 4.5 million pounds
Amortisation of drydocking in the 2002 period sterling is represented by a net loss for
decreased by 0.2 million pounds sterling to 0.7 the twelve months of 5.5 million pounds
million pounds sterling from 0.9 million pounds sterling less an accumulated other
sterling in the 2001 period, mainly due to the comprehensive income adjustment of 1.0
phasing of drydocking the group's fleet. million pounds sterling.
General and administrative expenses in the 2002 Long term debt at March 31, 2002 mainly
period increased by 1.4 million pounds sterling consists of 121.7 million pounds sterling of
to 5.4 million pounds sterling from 4.0 million 9 3/4% First Priority Ship Mortgage Notes, and
pounds sterling in the 2001 period. This mainly 40.4 million pounds sterling mainly relating
represents increased marketing selling and IT to the purchase of the Lagan and Mersey
costs in relation to the Irish Sea and expansion Viking in March 2001.
of the logistics' facilities.
On March 31, 2002 the Company had cash and
cash equivalents of 7.4 million pounds
sterling compared to 10.3 million pounds
sterling at March 31, 2001. The Company's
free cash at March 31, 2002 was 2.0 million
pounds sterling.
Taxation In January 2002, Lagan Viking, one of the
key RoPax vessels on the Liverpool - Belfast
The UK Treasury published the Finance Bill in service entered dry dock for a scheduled
April 2000, including the proposed UK tonnage overhaul. The dry dock was estimated to
tax regime. The bill became law in late take 14 days but actually lasted 32 days.
summer 2000.
While the Lagan Viking was in dry dock and
The tonnage tax regime allows UK shipping out of service the other key RoPax ship on
companies to elect to pay corporate tax based on the Belfast - Liverpool route experienced
a nominal profit derived from the net tonnage of generator failures which stopped the ship
its ships. Non shipping activities will be "ring for 3 days and restricted her use to
fenced" and taxed as before, based on taxable freight-only vessel (no passengers or
net income. The regime is intended to promote drivers) for a further 5 days.
the UK shipping industry and its competitive
position. The result of these disruptions forced
customers to switch their support to
Cenargo has opted to join the the tonnage tax alternative services in January where they
regime from October 1, 2002. This will allow remained during February. The Company began
Cenargo to operate its ferry and shipping to regain customer confidence during March
business virtually tax-free. Transitional rules and volumes increased.
of the regime mean that the majority of the Volumes carried during the quarter by month
Company's deferred tax liability (9.1 million were as follows:
pounds sterling at March 31, 2002) will be
extinguished over a seven year period at ETUs JAN FEB MAR TOTAL
----------------------------------------------
approximately 15% per annum.
Liverpool - Belfast 7,785 9,593 10,695 28,073
Heysham - Belfast 8,059 7,568 9,092 24,719
SEGMENT ANALYSIS
Liverpool - Dublin 9,452 8,919 9,213 27,584
Irish Sea Heysham - Dublin 5,588 5,183 5,708 16,479
30,884 31,263 34,708 96,855
The results of the last quarter were
significantly lower than the same quarter last Total volumes were approximately 14% lower
year. than during the same quarter last year.
Revenues were approximately 10% lower than
At the end of the previous (1st) quarter and the same quarter last year.
during the early part of this (2nd) quarter the
Company has suffered significant ship Volumes are gradually being restored after
operational technical problems which have January's operational difficulties but the
resulted in severe disruption to both our disruption to the Company's service occurred
Belfast services (Heysham and Liverpool). This while the annual freight rate negotiations
has come at a time when our major competitor were underway and it is too early to predict
increased capacity and undercut rates. the impact on our budgeted freight rate
increases.
In December 2001 Merchant Bravery operating on
the Heysham - Belfast service suffered a The Company believes the technical problems
prolonged engine breakdown and was out of encountered on their ships was symptomatic
service for 24 days. This breakdown followed of the deteriorating service quality
unrelated technical problems on the Company's received from their third party ship
chartered ship, Varbola, out of service for 27 managers which had been noted over a
days meaning that during much of Q1 the Heysham prolonged period. We have put the managers
- - Belfast service was operated by three ships on notice of the deficiencies and a 3 month
and not the advertised four ships. While these notice of termination was served in November
breakdowns had less impact on the Q1 result, the 2001.
full effect has been felt during Q2 as technical
problems have continued to affect service levels.
New ship managers, Bluewater Marine Management These scheduling benefits enable us to
Limited, (Bluewater) took over the management of introduce an additional vessel on this
the Company's fleet on 1st March 2002. The Liverpool - Belfast route, increasing the
Company has acquired 49% of the equity in sailing frequency and thus encouraging the
Bluewater which will enable it to exercise a transfer of freight traffic which would
tighter control over the quality of its ship otherwise use the far northern corridor
management. Bluewater is a dedicated and between Larne and Stranraer (Scotland). The
focused ship manager specialising in ferry, increased frequency opens our service to new
RoPax and RoRo vessels only. The Company has major users particularly the `just in time'
already noted a marked improvement in their ship supermarket suppliers. This is a
operations and performance with no significant significant new market for the Company where
stoppages since the Bluewater takeover. current trailer movements total some 370,000
per annum.
The Company's major competitor, P&O, introduced
additional capacity on their Dublin and Larne The new all tidal, all weather Liverpool -
(Northern Ireland) routes. P&O were operating Belfast service shortens road journeys by
two RoPax ships out of Mostyn (a small private some 500 miles per round trip and will
port in North Wales) and introduced two assist our customers to comply with current
additional RoPax ships on their Liverpool - tachograph restrictions (work-rest cycles)
Dublin service (replacing two smaller and future European working time directive
freighters). All four of these RoPax ships are legislation.
similar in capacity to the Company's own
vessels. This additional tonnage amounts to a The combination of improved ship performance
30% increase in capacity. P&O also lowered and service frequency from our new
freight rates in the Liverpool-Larne trade lane Riverberth should afford the Company a
which competes directly with the company's significant competitive advantage and
directly with the company's Liverpool-Belfast increase cargo volumes at `sensible' rates.
service.
Ferrimaroc
The Company had anticipated the advertised
Mostyn initiative but the last minute switch of Ferrimaroc continues to operate to budget.
two large RoPax ships, to the Liverpool - A sailing schedule covering the winter
Dublin route was unexpected and unwelcome. months has been agreed with the competitor
pool. The Company's share of the Almeria -
More positively the new Riverberth, which has Nador market during the quarter has been
been built for the Company's sole use, is almost almost 60%, with an almost 22% increase in
complete. Initial berthing trials have been the market during the quarter compared to
successful and the Company intends to switch its the same period last year.
Liverpool - Belfast service onto the Riverberth
on 17th June 2002, followed by its Liverpool - An agreement has been reached with the
Dublin service in mid-August 2002. This affords Moroccan authorities whereby the Company can
us a number of competitive advantages. The operate both its vessels during the summer
Liverpool - Belfast vessels will be able to rather than charter Scirocco, the smaller
round-trip daily rather than alternate days as one, out to one of the competitor pool.
at present thus immediately increasing our This authorisation is on the basis that a
frequency. This provides nearly 18% extra further Moroccan line (Comanav) charters 50%
capacity at marginal cost (fuel and port unit of Scirocco and is thus entitled to 50% of
charges). The Riverberth allows our vessels to the net earnings of that ship during the
leave later, particularly at night, and still summer. This arrangement should lead to
arrive at their destination in optimum time. improved results during the summer period
This affords greater flexibility to our compared to last year.
customers and should capture increased traffic.
Logistics FORWARD LOOKING STATEMENTS
The decision was taken at the end of fiscal 2001 This release contains forward looking
to expand the Group's geographical coverage statements (as defined in Section 21E of the
within the UK by renting warehouse space in Securities Act 1934, as amended) which
Milton (South Midlands) and Heathrow (South East reflect management's current views with
England). The start up costs associated with respect to certain future events and
this programme have been significant during the performance, including statements relating
first half of fiscal 2002. The benefit of the to multi purpose vessel charters and Irish
rent free periods on both warehouses has been sea freight ferry volumes and rates,
spread over the full period of the leases, to logistics and cash. The following factors
comply with current accounting standards. A are among those that could cause actual
managing director responsible for the Company's results to differ materially from the
logistics' operations was appointed on 1 January forward looking statements, which involve
2002. His experience covers most aspects of risks and uncertainties, and that should be
logistics but especially pick and pack and the considered in evaluating any such
direct selling industry. He also brings statements: changes in the political
pan-European distribution experience. environment in Northern Ireland and Eire,
Spain and Morocco, changes in the level of
Several contracts have been won or are in competition in the Irish Sea and
negotiation covering all the Company's Mediterranean, changes in the ability to
facilities, including pick and pack and other provide a regular scheduled service on the
added value requirements. Irish sea and the company's Mediterranean
service.
EUROPEAN MONETARY UNION - EURO
On January 1 1999, eleven member countries of
the European Union established fixed conversion
rates between their existing sovereign
currencies, and adopted the Euro as their new
common currency. The Euro is currently trading
on currency exchanges and the legacy currencies
will remain legal tender in participating
countries for a transition period between
January 1, 1999 and January 1, 2002. During the
transition period, non-cash payments can be made
in the Euro and parties can elect to pay for
goods and services and transact business using
either Euro or a legacy currency. Between
January 1, 2002 and July 1, 2002 the
participating countries will introduce Euro
notes and coins and will withdraw all legacy
currencies so that they will no longer be
available.
Although the United Kingdom is currently not
participating in the Euro the Company's
businesses trade extensively within the Euro
Zone. The Company will continue to evaluate all
pricing, currency risk, accounting, tax,
governmental, legal and regulatory issues as
guidance becomes available. Based on current
information the Company does not expect that
Euro conversion will have a material adverse
affect on its business or financial condition.
Unaudited Consolidated Statements of Income
Three Months Ended March 31, 2002, 2001
(Expressed in thousands of pounds sterling)
2002 2001
Operating revenues
Charterhire income 3,690 3,746
Ferry service income (3b) 19,699 21,256
Logistics and other income 4,935 4,719
-----------------------------------
28,324 29,721
-----------------------------------
Operating expenses
Vessel and other operating costs 22,480 22,316
Depreciation 2,196 1,903
Amortisation of drydocking 365 303
Goodwill amortisation 298 289
General andadministrative exps 3,117 2,069
Foreign exchange loss/(gain) 128 (312)
------------------------------------
28,584 26,568
------------------------------------
Operating (loss)/income (260) 3,153
Other income (expense)
Interest income 50 117
Interest expense (3,529) (3,284)
Loss on disposal of assets (5) (76)
------------------------------------
(3,484) (3,243)
------------------------------------
Loss before income taxes (3,744) (90)
Income taxes 1,124 68
Minority Interests - -
Net Loss (2,620) (22)
------------------------------------
Additional financial information
EBITDA (note 4) 2,594 5,572
EBITDA to interest expense, net 0.75x 1.8x
Unaudited Consolidated Statements of Income
Six Months Ended March 31, 2002, 2001
(Expressed in thousands of pounds sterling)
2002 2001
Operating revenues
Charterhire income 7,629 7,613
Ferry service income (3b) 40,363 41,499
Logistics and other income 11,232 10,620
-----------------------------------
59,224 59,732
-----------------------------------
Operating expenses
Vessel and other operating costs 45,993 47,440
Depreciation 4,283 3,830
Amortisation of drydocking 690 866
Goodwill amortisation 594 592
General and administrative exps 5,407 3,998
Foreign exchange (gain)/loss (44) (347)
------------------------------------
56,923 56,379
------------------------------------
Operating income 2,301 3,353
Other income (expense)
Interest income 128 307
Interest expense (7,114) (6,372)
Gain on disposal of assets (5) (74)
------------------------------------
(6,991) (6,139)
------------------------------------
Loss before income taxes (4,690) (2,786)
Income taxes 1,407 882
Minority Interests - -
Net Loss (3,283) (1,904)
------------------------------------
Additional financial information
EBITDA (note 4) 7,862 8,566
EBITDA to interest expense, net 1.1x 1.4x
Unaudited Consolidated Balance Sheets
As of March 31, 2002, 2001
(Expressed in thousands of pounds sterling)
2002 2001
Assets
Current assets
Cash and cash equivalents 1,947 7,179
Cash held in escrow and blocked deposits 5,418 3,124
Trade accounts receivable 18,901 19,047
Other receivables 3,399 2,000
Inventories 716 883
Prepaid expenses and accrued income 3,818 4,044
------------------------------------
34,199 36,277
Land and buildings 11,696 12,070
Vessels and equipment 132,454 137,855
Loans to joint ventures 2,807 2,620
Other investments 96 1
Goodwill, net 19,038 20,114
Deferred charges, net 6,145 7,083
Pension fund debtor 3,659 3,467
------------------------------------
Total assets 210,094 219,487
------------------------------------
Liabilities and shareholders' equity
Current liabilities
Current maturities of long-term debt 4,016 4,375
Capital lease obligations 651 683
Trade accounts payable 6,196 5,964
Accrued expenses 5,283 5,584
Accrued interest - ship mortgage notes 3,625 3,534
Other creditors 3,802 2,767
------------------------------------
23,573 22,907
------------------------------------
Long-term liabilities
Long-term debt 36,735 41,320
Ship mortgage notes 119,026 121,704
Capital lease obligations 532 909
Other creditors 1,157 524
Deferred taxation 9,107 7,578
------------------------------------
Total liabilities
190,130 194,942
------------------------------------
Shareholders' equity
Share capital 13 13
Accumulated other comprehensive income: (681) (1,691)
Retained earnings 20,632 26,223
------------------------------------
Total shareholders' equity 19,964 24,545
------------------------------------
Total liabilities and shareholders' equity 210,094 219,487
------------------------------------
Unaudited Consolidated Statements of Cash Flows
Six Months Ended March 31, 2002, 2001
(Expressed in thousands of pounds sterling)
2002 2001
Operating Activities
Net income (loss) (3,283) (1,904)
Amortisation of drydocking 690 866
Depreciation & amortisation 4,283 3,830
(Gain)loss on disposition of fixed assets 5 74
Foreign exchange adjustment (3,291) 1,852
Goodwill amortisation 594 592
(Increase) decrease in pension debtor - -
(Increase) decrease in trade debtors 1,358 525
(Increase) decrease in other debtors 24 (425)
(Increase) decrease in stock 124 144
(Increase) decrease in prepayments and accrued income 4,438 (464)
Increase (decrease) in trade creditors (4,608) (202)
Increase (decrease) in other creditors 1,314 (1,862)
Increase (decrease) in accrued expenses (2,334) 2,556
Increase (decrease) in deferred tax liability (1,407) (3,121)
Net cash (used) in operating activities (2,093) (2,461)
------------------------
Investing activities
Additions to investments in associated company (96) -
Additions to vessels and equipment (1,079) (44,007)
Purchase of subsidiary companies, net of cash acquired (50) -
Proceeds from sale of capital assets - -
(1,225) (44,007)
------------------------
Financing activities
Proceeds from long-term debt - 41,991
Repayment of long-term debt (2,179) -
Due to joint ventures (163) 246
Repayments of capital leases (307) (425)
Proceeds from capital leases - -
Deferred charges paid (drydockings) (1,480) -
(4,129) 41,812
-----------------------
Net increase (decrease) in cash and cash equivalents (7,447) 266
Cash and cash equivalents at beginning of period 14,812 10,037
-----------------------
Cash and cash equivalents at end of period 7,365 10,303
-----------------------
Notes to Unaudited Consolidated Financial Statements
March 31, 2002, 2001
1. Interim accounting policy
In the opinion of management of Cenargo International Plc (the "Company")
the accompanying unaudited consolidated financial statements include all
adjustments, consisting only of normal recurring adjustments, necessary to
present fairly in accordance with accounting principles generally accepted
in the U.S. the financial position of the Company and the results of
operations and cash flows for the six months ended March 31, 2002 and 2001.
Although the Company believes that the disclosure in these financial
statements is adequate to make the information presented not misleading,
certain information and footnote information normally included in interim
financial statements prepared in accordance with generally accepted
accounting principles has been condensed or omitted pursuant to the rules
and regulations of the Securities and Exchange Commission. Results of
operations for the six months ended March 31, 2002 and 2001 are not
necessarily indicative of what operating results may be for the full year.
2. Changes in shareholder's equity
Cumulative Ordinary
translation share Retained
adjustment capital earnings
---------- ------- --------
Balance at September 30, 2000 (1,041) 12 24,448
Net income (loss) (2,732) - 1,775
------------- ----------- -----------
Balance at March 31, 2001 (1,691) 12 26,223
============= =========== ===========
Balance at September 30, 2001 (391) 12 23,915
Net income (loss) (290) - (3,283)
------------- ----------- ------------
Balance at March 31, 2002 (681) 12 20,632
============= =========== ===========
3. Contingent liabilities and assets
(a) The company insures the legal liability risks for its shipping
activities with the Steamship Mutual, UK Mutual and North of England
mutual protection and indemnity associations. As a member of mutual
associations, the company is subject to calls payable to the
associations based on the company's claims record in addition to the
claims record of all other members of the associations. A contingent
liability exists to the extent that the claims records of the members
of the associations in the aggregate show significant deterioration
which result in additional calls on the members.
Notes to Unaudited Consolidated Financial Statements
March 31, 2002, 2001
(b) The Company continues to pursue claims for damages relating to
operations in Spain. The total claims amount to 21.5 million pounds
sterling of which 7 million pounds sterling has been received and
recognised in previous years.
4. Segment Information
The Company has adopted FASB Statement No. 131, "Disclosures about Segments
of Business Enterprise and Related Information". The Company is managed in
three operating segments: Irish Sea Ferries, Ferrimaroc and Logistics and
Other Activities. Corporate includes certain central overhead costs,
central financing costs and other general corporate income and expenditure.
The Company utilises EBITDA as a measure of segmental performance. The
Company defines EBITDA as net income (loss) before taxes, interest expense,
interest income, depreciation, provision for impairment in value of
vessels, amortisation of dry-docking and special survey costs, amortisation
of goodwill, gain or loss from joint ventures and minority interest.
Certain financial information is presented below: amounts are in thousands
of US Dollars.
Shipowning &
Irish Sea Logistics Chartering
Ferries Ferrimaroc and Other Less Corporate Total
Three Months to March 31, 2002
Revenue 17,323 2,375 4,935 3,690 28,323
EBITDA 2,330 286 (287) 245 2,594
Tangible assets 120,458 9,744 5,220 8,728 144,150
Capital expenditure 269 - 253 - 522
Three months to March 31, 2001
Revenue 19,221 2,035 4,719 3,746 29,721
EBITDA 4,157 172 442 801 5,572
Tangible assets 124,580 10,585 5,623 9,137 149,925
Capital expenditure 43,879 - 128 - 44,007
Six months to March 31, 2002
Revenue 35,786 4,576 11,232 7,629 59,223
EBITDA 6,646 375 (259) 1,100 7,862
Capital expenditure 523 - 556 - 1,079
Six months to March 31, 2001
Revenue 37,859 3,639 10,620 7,613 59,731
EBITDA 6,419 (171) 810 1,508 8,566
Capital expenditure 43,879 - 128 - 44,007
Notes to Unaudited Consolidated Financial Statements
March 31, 2002, 2001
4. Segment Information (continued)
EBITDA for all reportable segments differs from consolidated income (loss)
before income taxes reported in the consolidated statements of income as
follows: amounts are in thousands of pounds Sterling:
Three months Ended March 31 Six months Ended March 31
2002 2001 2002 2001
---- ---- ---- ----
EBITDA 2,594 5,572 7,863 8,566
Reconciling items:
Depreciation (2,196) (1,903) (4,283) (3,829)
Amortisation of goodwill (298) (289) (594) (592)
Amortisation of drydocking (365) (303) (690) (866)
Net interest expense (3,479) (3,167) (6,986) (6,065)
------------- ------------ --------------- ----------------
Loss income before income taxes (3,744) (90) (4,690) (2,786)
------------- ------------ --------------- ----------------
FLEET LIST AT MARCH 31, 2002
Year
Vessel Name Vessel Type Capacity Built Flag
- ----------- ----------- -------- ----- ----
MERCHANT BRAVERY C RoRo 40 cars 1978 Bahamas
100 trailer units
MERCHANT BRILLIANT C RoRo 40 cars 1979 Bahamas
100 trailer units
MERCHANT VENTURE C RoRo 55 trailer units 1979 British
(Isle of Man)
RIVER LUNE C RoRo 49 cars 1983 Bahamas
93 trailer units
SAGA MOON C RoRo 50 cars 1984 British
(Gibraltar)
72 trailer units
MISTRAL C Passenger/Car 2,386 passengers 1981 Bahamas
Ferry 700 cars
SCIROCCO C Passenger/Car 1,315 passengers 1974 Bahamas
Ferry 296 cars
30 trailer units
DAWN MERCHANT C RoPax 250 passengers 1998 British
(Isle of Man)
136 trailer units
BRAVE MERCHANT C RoPax 250 passengers 1999 British
(Isle of Man)
136 trailer units
NORTHERN MERCHANT* RoPax 250 passengers 2000 British
136 trailer units
MIDNIGHT MERCHANT* RoPax 250 passengers 2000 British
136 trailer units
LAGAN VIKING RoPax 330 passengers 1997 Italian
180 trailer units
MERSEY VIKING RoPax 330 passengers 1997 Italian
180 trailer units
C Collateral vessel securing 9 3/4% Ship Mortgage Notes
* Operated under an operating lease.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CENARGO INTERNATIONAL PLC (registrant)
Dated: June 5, 2002 By: /s/ Michael Hendry
------------------------
Michael Hendry
Chairman
#328216