27 October 2009
The Spirit of Tasmania vessels continued their strong
performance over the past financial year making a significant
contribution to the Tasmanian economy.
Passengers and passenger vehicles carried by TT-Line Company Pty
Ltd in 2008/09 increased compared to last financial year,
benefiting the local economy and the tourism industry.
Freight units carried for the year remained steady.
Total revenue increased to $175.6 million ($166.9 million last
financial year), delivering TT-Line with an underlying operational
profit of $6.7 million.
Taxation issues associated with the annual revaluation of Spirit
of Tasmania I and II and bunker fuel hedge derivatives resulted in
the company recording an after tax-loss of $2.4 million.
Chief Executive Officer Charles Griplas said the $8.3 million tax
expense was a non-cash item and did not impact on the company's
cash flow.
"The cash flow statement published in the Annual Report shows the
company paid off $25 million of its debt in 2008/09 as planned,
leaving the company with cash and cash equivalents of $38.7
million, $11.4 million less than last year's figure," he
said.
"It is worth noting that this month (October 2009) the company
made another $25 million debt reduction payment.
The final payment will be made next financial year, meaning
TT-Line will be debt-free by 2010/11.
"Debt reduction has been one of our obvious priorities. It
is important that we continue to strengthen our financial position
given the previously announced strategy to replace the Spirits
around 2017."
Mr Griplas said Terminal Services checked in 390,746 passengers
(385,028 passengers in 2007/08), 182,595 passenger vehicles
(177,265) and 85,288 units of freight (85,594).
"These are very pleasing results given the volatile economic
conditions and weaker consumer sentiment," he said.
Mr Griplas said the Annual Report listed a number of highlights,
including:
- Spirit of Tasmania II was drydocked in July / August
2008. Underwater paint coatings were removed and replaced
with a smooth silicon paint that has delivered an annual reduction
in fuel consumption. Eight new super polished propeller
blades were also fitted to the ship generating further fuel
savings.
- Independent research conducted for the company found that
Spirit of Tasmania continued as the dominant brand for travel to
Tasmania for interstate travellers. It also found that Spirit
of Tasmania continued to have the highest advertising recall for
travel between Victoria and Tasmania.
- During 2008/09, 169 cooks, stewards, pursers and shipboard
managers participated in the Spirit of Service program that covered
a range of food and beverage service and management skills training
modules.
- TT-Line created the important position of General Manager -
Human Resources as part of the senior management team.
- The TT-Line-owned Edgewater Hotel achieved record occupancies
and revenues in 2008/09.
Mr Griplas said swine flu defence initiatives implemented by
TT-Line following the outbreak of the disease in Australia clearly
demonstrated the company's ability to work closely with relevant
government departments to form part of the front line defence for
Tasmania.
"It is pleasing to be able to report that Spirit of Tasmania
vessels maintained a perfect record in respect to schedules in
2008/09, never missing a sailing and completing every voyage," he
said.
"In addition, the company recorded no major work-related injuries
at sea."
Mr Griplas said TT-Line continued its strong support of various
Tasmanian organisations, initiatives and charities, including
sponsorship of the Spirit of Tasmania award, part of the Southern
Cross Young Achiever Awards.
The company again presented the Spirit of Tasmania Postgraduate
Prize at the Australian Maritime College and awarded scholarships
to two Drysdale Institute of TAFE hospitality and tourism
students.
Released by:
Nicolas Turner
Tel: 6210 5206 or 0418 538 865
