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Losses at Guernsey Ports grew by around half-a-million pounds between 2022 and 2023, the latest accounts have revealed.
There was a £2.2m increase in income delivered through increased passenger movements but pay costs and other inflationary cost rises eradicated any profit margin last year.
The operating loss was below predictions of £6.6m but still topped £4.8m - up from around £4.3m the previous year- with the Ports continuing to rely on additional government cash this year due to cash pressures.
Last year’s States budget forecast that the Ports will be £2.5m in the red for 2024.
Ports chair Dr Simon Thornton said he was “disappointed” with the result but said the company was committed to finishing a review of the finances “considering opportunities for cost savings and efficiencies”.
He said several “commercial opportunities” have already been identified but “limited resources” could prevent some of those being realised, while fee increases such as airport parking and private moorings have now come into force.
“The need to balance the affordability of the proposed increases against the need to reduce requirement for taxpayer subsidies at Guernsey Ports has remained a priority for the Board throughout a period of consultation,” he said. “Some challenge to the proposed increases has been advanced in the [States]. The Board has recognised some concern expressed and will reflect further on the potential impact any further rises will have before they make further proposals.
“I would like to thank all the dedicated staff and employees for continuing to meet the demands of the business in another busy year of change. Their ongoing commitment to maintain and provide the lifeline links to the island is greatly appreciated and not taken for granted.”
Pictured: A breakdown of Ports’ financial performance in 2023.
Revenue was up to £23.5m thanks to a 16% increase in passengers at the harbour and a 6% increase at the airport, but the numbers are still around 20% lower than in 2019.
“Overall, this represents a reduction of over 200,000 passengers since 2019, and there is now some evidence that the current level of passenger volume represents a resetting of future passenger demand for the Ports,” Managing Director Colin Le Ray said.
The airport made a loss of £5.6m, up from £4.9m in 2022 while the harbours reported a slightly higher profit of £0.8m.
Full-time employees grew by 3% at the airport to 105 and there was a 16% increase at the harbours to 98 staff.
“The airport is open over 15 hours a day for seven days a week providing vital connectivity for the island. Returning the airport to profitability and maintaining current service levels will be a particular challenge without ongoing central funding,” Dr Thornton said.
Less cash was spent on capital projects including scanners and the baggage system at the airport, repairs to Havelet slipway and Castle emplacement, and preparatory work for pontoon replacements in the QEII marina.
Guernsey Ports are also working with treasury on financing options for the pool marina project, with a delayed policy letter due to be published later this year.
The Ports still have an £100m capital programme with most cash needed on upgrading harbour infrastructure: “many of the assets are beyond their original design life and any delay to the planned work will create an increased and unacceptable risk of failure,” Mr Le Ray said.
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