Forth Ports plays down weather fears with strong update

FORTH Ports yesterday shrugged off the impact of the bad weather and said its operations were continuing to perform strongly.

In a trading update for the financial year to 31 December, the Edinburgh-based company, which owns seven ports in Scotland including Leith and Rosyth, said progress had been "robust" during the year and ahead of 2009 results.

Strong cash generation by the group is also expected to see net debt reduce from 251 million last year to under 240m at the end of the year.

In a statement the company said it expected results for the year to be in line with expectations.

"The recent spell of severe winter weather has not affected our trading outlook despite a number of operational challenges both for us and our customers," it said.

"2010 is showing a return to growth for the ports' business after challenging trading conditions in 2009 which demonstrates the benefits that a widely based and secure business brings in a time of macro-economic uncertainty."

In Scotland, the company highlighted strong performance in particular at its Leith and Dundee ports and said volumes on the Rosyth to Zeebrugge ferry had also improved.

Applications for biomass energy sites at Rosyth and Leith are progressing and the company has also registered interest in the new Scottish renewables infrastructure fund which aims to establish locations for renewable energy manufacturing and distribution hubs near ports.

At Forth Port's Ocean Terminal Shopping Centre, H&M have recently opened store and work is under way to create an enlarged unit for Frankie and Benny's restaurant.

"We are confident that the results for 2010 will be in line with our expectations and we remain confident of the growth opportunities for the group," said the company. Shares in Forth Ports closed up 5p at 1,385p.