A PRIVATELY owned ferry company has seen its turnover edge up in spite of a small drop in passenger numbers.
Western Ferries (Clyde), which operates a vehicle-carrying service between Hunters Quay near Dunoon and McInroy's Point near Gourock, Inverclyde, described its most recent financial year as a "solid" performance.
Accounts recently filed at Companies House show turnover was up by 0.5 per cent from £7.27 million to £7.31m in the 12 months to March 31, 2014.
However a 2.8 per cent rise in operating expenditure to £5.17m resulted in pre-tax profits falling from £2.2m to £2.04m.
The company, which has its registered office in Dunoon, said that passenger numbers had fallen 2.2 per cent in the period but did not give specific numbers.
Gordon Ross, managing director, said: "It was a solid year for Western Ferries."
On its balance sheet Western Ferries saw the value of its tangible assets increase from £8.4m to more than £12m which reflects two new vessels which were brought into service during October 2013.
The Sound of Soay and the Sound of Seil were both built by Cammell Laird in Birkenhead.
They replaced the slower and smaller Sound of Scalpay and the Sound of Sanda, which had been used by Western Ferries since 1995.
The newer vessels have a larger capacity, 40 cars compared to 34 cars.
They can also complete the crossing between Dunoon and Gourock in 20 minutes during busy periods and are more fuel efficient than the vessels which were replaced.
The accounts note capital spending of £4.35m in the year, up from £3.74m.
The investment in the vessels saw net debt widen from £1.1m to almost £3.8m.
Mr Ross said: "The significant impact for the company was the delivery of the new vessels in October [2013]. You see that in the fixed assets and the creditors.
"When it does get busy we increase the speed. If we were really busy we could do three runs with each of the new boats so a maximum of 12 crossings an hour.
"It improves our operational flexibility to cope with peak demand."
Mr Ross pointed out that the business completes around 32,000 sailings annually with ferries typically leaving on the hour and at half past the hour.
He said: "99.9 per cent of the time that meets our customer's demands. There are times, Easter and Bank Holidays, where demand increases.
"That flexibility to increase the number of sailings means any delay is minimised."
Staff numbers were steady at 66 with employee costs rising from £2.56m to close to £2.79m.
Directors' Remuneration rose from £343,000 to £357,000 with the highest paid seeing their emoluments increase from £128,000 to £133,000.
An equity dividend of £500,000 was paid in the year.
The accounts state £142,860 went to John Denham as well as £71,428 each to David Harris and Alistair Ross.
Gordon Ross said the business was waiting to see what the tender for the Gourock to Dunoon route, which is currently operated by Argyll Ferries, looked like before deciding whether to bid for it.
He said: "The Scottish Government has mentioned that the tendering process would start early [2015]."
The company said it was not forecasting any significant upturn in its market and Mr Ross added: "Looking forward the focus is to improve our overall performance."
Western Ferries, which began operations in the summer of 1973, counts Labour party politician and former Nato secretary general Lord George Robertson among its directors.
stern Ferries
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