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Accounts for 2023 for Southampton Isle of Wight and South of England Royal Mail Steam Packet Company (SIOW), trading as Red Funnel, have now been published.
Fran Collins, CEO, said: “Our accounts have been rigorously audited by a third-party auditor in a prescribed process which scrutinises our performance and holds the directors to account.”
In the year ending December 2023, the accounts show that SIOW recorded a 10.4 per cent increase in turnover, reporting £61.08 million in 2023 — up from £55.33 million in 2022.
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The firm reported earnings of £11.9 million — a fall of £3.2 million or 21.4 per cent on the previous year, when they were £15.15 million.
Red Funnel has also secured financial backing from the firm’s lenders for at least the next 18 months under the proviso that new investment is obtained by September 30 2025.
If this milestone is not met this could require a demand for repayment, for which the group ‘would have insufficient cash or available finance’, the accounts state.
RF maintains it is ‘confident’ it can secure investment though, and is ‘actively in discussions with several parties’.
At the end of last month (March), and prior to the publication of the accounts, Red Funnel CEO Fran Collins told the County Press the firm was in a “resilient” financial position.
In a new statement, she said: “We are in a very strong position with an ambitious future that takes us well beyond the investment process currently underway.”
She said the 2023 audited statements for the intermediate holding companies, which include Red Funnel LTD, were filed on Wednesday and will show on Companies House in due course.
“I am pleased to confirm that, like the SIOW accounts, these have been filed on a going concern basis and that any rumours of administration are categorically incorrect”, she said.
According to the accounts, in 2023, £984,000 was paid to directors, through emoluments (£823,000), group contributions to defined contribution pension schemes (£68,000) and compensation for loss of office (£93,000).
The accounts also state that no dividends were paid to shareholders in 2023, confirming what Ms Collins told the County Press last month.
Ms Collins’ statement continued: “We understand the interest in our business, and recognise that as a lifeline service provider we are frequently under scrutiny.
“Although we cannot share commercially sensitive business information, we continue to ensure that the investment program into the fleet replacement continues at pace and are focused on ensuring the reliability of the current vessels to ensure an effective service to support the Island community.”
