warrenpoint harbour annual report

ANNUAL REPORT 2010www.warrenpointharbour.co.uk

PORT Of WARRENPOiNTWarrenpoint Harbour Authority

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J Stewart (Chairman)

p Conway (Chief executive)

W burns

K Campbell (term completed 30 September 2010)

M Carr (appointed 15 November 2010)

p Fitzsimmons

K Grant (Finance Director)

b Horsman

W Luney

G McGivern (term completed 30 September 2010)

J o’Hare (resigned 5 October 2010)

b reid (appointed 1 October 2010)

M ruane

a Stephens (appointed on 1 October 2010)

SENiOR MANAGEMENTChief Executive: peter Conway b.a. Mod.(econ), M.a.

Finance Director: Kieran Grant aCMa

Harbour Master: Captain brian McJury Mni, Master Mariner

Harbour Engineer: Ciaran Cunningham, Ceng FiMeche

PROfESSiONAL ADViSERSBankers: ulster bank Limited

Auditors: Deloitte LLp, belfast

Solicitors: Mills Selig

1. aerial shot of Warrenpoint Harbour

2. the artemis in town Dock

3. Loading Steel Coils

4. Discharging Steel

Members

1 2 3 4

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Chairman’s Statement

7.5%PRE TAx PROfiT iNcREASE

2.8%iNcREASE iN RO/RO TRADE

Despite the current economic conditions, i am confident that the Harbour is very well placed to secure major growth when the market conditions finally start to improve and continue to play an important role in the economy of the newry and Mourne region.

We have continued our commitment to Corporate, Social and environmental responsibilities as a trust port. We continue to participate in local business community groups. We have facilitated many school visits and mentoring programmes, recycling projects and we coordinated the visit of the tall Ship artemis to coincide with the ‘blues Festival’ in Warrenpoint.

once again i want to record that i feel very privileged and honoured to have served as Chairman of Warrenpoint Harbour and to help improve the economic conditions of the South Down region. in 2011 i will complete my term as Chairman of the Harbour. i have made very many friends in the region and will look back with very fond memories of my time in Warrenpoint.

in 2010 we said farewell to Kieran Campbell and Gerard McGivern. both served as Members on the Harbour board for six

years. i want to place on record my personal thanks and on behalf of the Harbour the recognition of the significant contribution that both Kieran and Gerard made to the Harbour board.

also in 2010, Josephine o’Hare, a newry and Mourne Council nominated member of the board resigned for personal reasons. Josephine during her time on the board was very committed and supportive to the board and the Senior Management team. i thank her for her service and wish her well for the future.

Josephine was replaced by Michael Carr. Michael is no stranger to the Harbour having served on the board on a previous occasion. i welcome Michael back and know that his knowledge of the Harbour and commitment to the newry and Warrenpoint region will be of great benefit to the Harbour.

We also welcomed three new directors in 2010. peter Fitzsimmons, brian reid and alan Stephens have settled in well to their new roles and add a significant depth of business knowledge and experience. i am sure that they will make a great contribution to the Harbour board and i welcome them to the Harbour.

The severe downturn in the UK and World markets continued throughout 2010 bringing a significant reduction in tradable goods and Government pressures to reduce public sector expenditure. This in many areas brought with it reduced expenditure and increased unemployment.

these bleak conditions have had a severe effect in the overall level of trade between ireland and the uK and europe. However, despite these depressed factors, i am pleased to report that Warrenpoint Harbour beat expectations and reported it’s second highest ever traded tonnage.

this was achieved with Seatruck, our core tenant achieving a 2.8 % increase in trade whilst operating in an overall declining market. this was an outstanding performance and justifies our commitment to, and business partnership with, Seatruck.

We also had strong growth in Steel, timber and recyclables.

In 2010 we also welcomed Cardiff Containers to the Harbour and are pleased with the steady growth in their business since it’s commencement in March 2010. this was particularly important for us since our previous container service C2C Lines relocated to Dublin in 2009.

Our strategy of product diversification and the drive for greater efficiency have been major factors in enabling the authority to perform better than market expectations.

With the continued decline in the construction sector throughout ireland it was an excellent achievement for the Harbour to report strong growth in the import of timber and Steel.

Grain imports were down by over 20 % in 2010. this resulted from an improved local harvest and price pressures in world markets.

our decision to add Steel recyclables was repaid with an almost 100 % increase in

export in 2010. This made a significant contribution to trade in the Harbour.

The Authority achieved a profit before tax of £216k. this was an increase of 7.5 % over 2009. this was a very credible performance taking into account the difficult trading conditions that continued throughout 2010.

in 2010 the authority completed the major capital investment programme that added deep water berths and a new ro/ro terminal. this investment was commenced in 2006 and has added significant additional facilities that will help ensure the long term viability of the Harbour. this investment was supported by the Department of regional Development and we appreciate the commitment shown by Minister Conor Murphy MLa to Warrenpoint Harbour in this project.

the authority has continued to develop strategic plans to secure the long term growth of the Harbour. this has included the intention to expand storage facilities and further product diversification.

the recently refurbished town Dock has continued to be a major boost to the town centre and in addition has enabled the flourishing of the successful mussel business and berthing of recreational vessels during the summer months. the Harbour has entered into a strategic alliance with the newry and Mourne Council to evaluate the feasibility of developing a 200 berth marine adjacent to the breakwater. this would be a major economic and tourist boost to the Warrenpoint and South Down region and should be supported by all local public representatives.

J R Stewart CBE Chairman

In 2010 we also welcomed Cardiff Containers to the Harbour and are pleased with the steady growth in their business since it’s commencement in March 2010.

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over the last six years i have had the pleasure of leading and working with a very committed and knowledgeable management team that give their time unselfishly to the improvement of the Harbour and the overall region. i want to thank Chief executive peter Conway, Financial Director Kieran Grant, Harbour Master Captain brian McJury and Chief engineer Ciaran Cunningham for their personal support, friendship and their commitment to Warrenpoint Harbour.

My appreciation also extends to all the staff and employees in the Harbour and I wish them ongoing success for the future.

i would also like to thank my fellow board Members for their support and assistance throughout the year. Many of the board Members serve on important and valuable sub-committees of the board. the contribution that these committees make is an important element of the overall governance arrangements that are in place in the Harbour.

i would also like to recognise the important contribution that the port users make to the Harbour and thank them for their custom and support.

J r Stewart Cbe Chairman

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Chief Executive’s Report

Warrenpoint Harbour Authority (“the Authority”) is pleased to present its Report and Financial Statements for the year ended 31 December 2010.

Principal Activitiesthe principal activities of the authority are the provision of port facilities and stevedoring services.

Review of the BusinessThe Authority is pleased to report a profit on ordinary activities before tax of £216K (2009 - £201K).

During the year the authority achieved a turnover of £3.29M (2009 - £3.35M) on a cargo throughput of 2.6M tonnes (2009 – 2.4M tonnes).

The worldwide recession and its effect on both international and local business continued to be a challenge for the authority during 2010. nevertheless WHa put in a very steady performance to achieve the second highest ever tonnage through the port of Warrenpoint. although turnover remained static judicious cost control ensured a moderate increase in profit levels.

the management and workforce have worked together to provide an attractive marketing package for the customers using Warrenpoint Harbour and its facilities. recent major investment in the Harbour, including the creation of a new ro/ro and Deep Water Facility has ensured that the port has maintained its position and increased its market share on the island of ireland. this has helped WHa to ride out the recession.

2010 saw the welcome return of a Container service to the Port with the initiation of Cardiff Container Line twice weekly service to and from Cardiff. This volume is based on the supply of Steel Coil to the tata plant at Lisburn. third party Container business continues to grow as this route is being developed. once again Seatruck Ferries Ltd continued to beat the market trends, with a year-on-year increase of 2.8% on Ro/Ro traffic through Warrenpoint - this is set against an overall 1% growth in the northern ireland ro/ro market.

the port also recorded a 2.5% increase in total vessel calls with major improvements in the import of Steel, timber and recyclables. Grain imports declined marginally to 200K tonnes but 2010 saw the arrival of the largest ever shipments into Warrenpoint using the new Deep Water berths with cargoes of Maize from brazil and Canada.

Returns from both the mussel fishing sector and recreational vessels berthing in the Warrenpoint town Dock continued to make a positive contribution to the business model.

InvestmentThe final phase of the £21.5M investment (75% funded by DRD) was completed with the Official Opening of the Deep Water Quay in June 2010 by DRD Minister Conor Murphy MLA.

Going Concernthe current economic conditions present increased risks and uncertainties for all businesses. in response to such conditions, the Members have carefully considered these risks and the extent to which they might affect the preparation of the financial statements on a going concern basis.

by way of background, the authority’s business activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman’s and Chief executive’s reports.

using this information, the Members consider that:

• the authority was set-up in 1971 through government legislation. the regional Development Strategy has highlighted the strategic importance of the northern ireland ports. DrD has provided partial assistance for its recent capital investment £21.5 Million project.

• the authority’s key customers are in a stable position given the present economic climate. Long-term contracts are in place and some customers have made recent significant investments to service their shipping through the port of Warrenpoint.

• the authority has sought to diversify wherever possible to maintain revenue streams. the recently developed town-Dock facility and the introduction of scrap metal as an export cargo are examples of this.

• the authority has treasury and cash management procedures and policies in place to manage its finances effectively and efficiently.

• the authority is able to meet day-to-day decisions regarding its working capital based on up-to-date financial reports and analysis.

• the authority uses up-to-date budget projections that are revised throughout the year so that financial decisions can be made in a timely and effective manner.

the Members therefore consider that the authority has adequate resources to continue in operational existence for the foreseeable future. accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Health, Safety, training and the EnvironmentDuring 2010 the authority employed 47 full time equivalent employees including both full-time and casual staff. Together with Seatruck Ferries Ltd, our agents and hauliers, over 200 people work daily in the Harbour complex. their Health and Safety is of prime concern to Warrenpoint Harbour authority. the authority continues to reduce accident rates and encourages employees to upskill and improve work practices as part of a planned training programme.

Following a successful audit, Warrenpoint Harbour authority was once again awarded Investors in People certification in 2010.

the authority continues its programme to promote maritime safety and training by facilitating the rya in running power boat and personal water craft courses using the facilities of the town Dock.

In an effort to reduce our carbon footprint, Warrenpoint Harbour Authority has invested in new technology with the installation of a comprehensive energy monitoring system. this provides the Harbour engineer with up to the minute analysis of energy use in the Harbour operations and has resulted in substantial savings in both energy and cost.

The independent report of Dust Monitoring and Testing conducted by Queen’s University belfast on behalf of newry and Mourne District Council and Warrenpoint Harbour authority concluded that emissions from the Harbour are within health and safety and environmental guidelines. nevertheless it is the intention of the authority to invest further in this area in the future.

Peter C Conway Chief executive

£216kPROfiT ON ORDiNARY AcTiViTiES BEfORE TAx

2.6m TONNAGE THROUGHPUT

2.5% iNcREASE iN TOTAL VESSELS

The worldwide recession and its effect on both international and local business continued to be a challenge for the Authority during 2010. Nevertheless WHA put in a very steady performance to achieve the second highest ever tonnage through the Port of Warrenpoint.


Strategic Planning and Port Statusas a major economic driver for the region Warrenpoint Harbour receives much support from Mps, MLas and Councillors, many of whom visit the facility on a regular basis.

the authority continues to promote local suppliers of goods and services in running its business and this is estimated to account for an additional 900 jobs in the newry and Mourne region.

the Harbour authority has set aside capital reserves for the anticipated full maintenance dredging programme for the approach channel and swing basin expected to be carried out in 2011 subject to the results of a pre-dredging survey.

as the business of the Harbour increases it is imperative that the footprint for operations needs to be expanded. to this end the Harbour authority is involved in discussions with local landowners with a view to acquiring additional land adjacent to the Harbour. a decision by the planning Service in 2010 to grant outline planning permission for residential development close to the Harbour operations is being challenged by Warrenpoint Harbour authority and is presently subject to Judicial review.

Warrenpoint Harbour, together with the other northern ireland trust ports, continues to lobby for legislation to allow the ports to compete on a more commercial basis. WHa is hopeful that the proposed draft legislation will be enacted by the new assembly.

Good Corporate CitizenshipWarrenpoint Harbour authority is proud to take its place in the local community and engages at many levels with stakeholders. Management is fully involved with both the newry and Warrenpoint Chambers of Commerce. in the education sector, school visits to the port by GCSe and a-Level students from many of the local schools have taken place together with presentations by the Harbour engineer and Ceo in other schools in the district.

the authority has also embarked on mentoring of new business start-ups in the area and the Financial Director, Kieran Grant, leads a very successful school project team from St Mark’s High School in Warrenpoint in a new business start-up in 2010.

in recognition of Warrenpoint Harbour authority’s involvement in the local community the Chief executive was asked to present at the Annual British Ports Association Conference in Torquay on the topic “Good Community Relations Can Benefit Your business”.

The Harbour now makes a significant contribution to Warrenpoint’s tourist offering with visits by the Tall Ship for the Blues on the bay Festival, the facilitation of cross border swimathons and the Mourne Walking Festival. the Harbour also provides berthing and assistance in the running of local yacht regattas during summer months.

In a major effort to promote tourism Newry and Mourne District Council and the Harbour Authority continue to work up plans for the development of a 200 berth yachting marina within the Harbour area. Full economic and technical studies have been completed and planning permission is expected to be granted in 2011. Funding in the current economic climate is extremely difficult. However the two organisations are determined to press ahead as it is recognised that this would be an extremely beneficial project for the entire region.

ResultsThe financial results for the year ended 31 December 2010 are set out in detail on Page 18. The profit after tax for the year is £144,585 (2009 -£149,145).

Members the Members who served during the year were:

peter C ConwayChief executive

J Stewart (Chairman)p Conway (Chief executive)W burnsK Campbell (term completed 30 September 2010)M Carr (appointed 15 November 2010)p Fitzsimmons

K Grant (Finance Director)b HorsmanW Luney G McGivern (term completed 30 September 2010)J o’Hare (resigned 5 October 2010)b reid (appointed 1 October 2010)

M ruanea Stephens (appointed on 1 October 2010)

Approved by the Board on 24 May 2011 And signed on behalf of the Board

Kieran GrantKieran Grant from Warrenpoint is an honours graduate in business administration and Computer Science from Queen’s University Belfast. Kieran continued his studies in University of Ulster, Jordanstown where he obtained Post-Graduate Diplomas in Accountancy and Advanced Accountancy. He qualified as a Chartered Management accountant within 2 years of joining norbrook Laboratories where he spent a total of 10 years working in various roles within the Group Finance department. Kieran joined the Harbour authority in 2003 as Financial Controller and was appointed to the board in october 2007. Kieran is a keen sportsman with interests in golf, gaelic football and running. He completed his first marathon at the inaugural Newry City Marathon and has also taken part in the Mourne Mountain Marathon challenge.

Bonnie Horsman MA MScbonnie Horsman was involved in the transport sector and more particularly in operations at Warrenpoint port at senior management level for 18 years as a Director of anley Maritime agencies Ltd and previously as a Director with Seatruck Ferries Ltd. bonnie currently heads up a business consultancy, new Way Solutions Ltd, that specializes in sustainable development. bonnie is also a Director of Mourne Country park Ltd, a company that is involved in tourism, farming and land management, and a trustee and Director of Friends of the earth (england, Wales and northern ireland).

Captain Bill LuneyCapt. Bill Luney is a qualified Master Mariner and is an established maritime specialist with 40 years of experience in this field, both afloat and ashore. Following his sea-going career he spent 25 years in port operations at the port of belfast with the last 10 years as Harbour Master. Latterly he held several Directorships and ran his own Maritime Consultancy Company. He has now retired from business activities but is actively involved in the local community being Chairman of Whitehead Community association and is also a member of the rotary Club of Carrickfergus.

Brian Reid brian reid currently works for Kainos Software Ltd as uK Sales Director, a role he has held since 2004. He previously worked for Hewlett packard Ltd in bracknell as practice principal – Global Services, and for iCL/Fujitsu in various sales and senior management roles. He is an experienced all round business leader, particularly in sales and marketing disciplines. He is an honorary Fellow of the Sales institute of ireland since 1999; a member of the institute of Directors since 1999 achieving Chartered Director status (C.Dir) in 2006; and currently serves on the professional Development Committee of ioD since 2009.

Michael RuaneMichael has lived all his life in Warrenpoint Co Down. He has served as a Sinn Fein councillor on newry and Mourne District Council from 2001 to the present day. and has held the Chairmanships of the following committees equality, building control and Finance. He is also a member of Department of agriculture and rural Development’s local action group for delivering funding under the rural development programme. Michael also serves on the board of governors of St Mark’s High School and is involved in a number of organisations in the local community which includes the Safer Warrenpoint project.

Alan Stephensalan Stephens has worked in the food industry for over 40 years. He has a background of Sales and Marketing for about 20 years with rank Hovis McDougall, in the bakery business, both working in belfast and Derry. in 1991 he was appointed Managing Director for northern ireland and when premier Foods pLC acquired rank Hovis McDougall in 2006 he became Managing Director of premier bakeries ireland. He has significant experience of acquisition and mergers of large companies. He has also been President of The irish Master bakers association for 2 years.


Jim Stewart, CBE, BSc(Hons), MA ChairmanJim Stewart is a local businessman with international management experience having worked abroad with the Goodyear tyre and rubber Company in South africa, Greece, italy and turkey. He is also Chairman of the northern Health and Care trust and a former non-executive director of the eastern Health and Social Services Board, LEDU and the Northern Ireland Quality Centre and a former Chairman of Greenpark Heath and Social Services trust. He is currently Managing Director of training Solutions (ni) Ltd which provides training and development for both public and private sector organizations. Jim is also Chairman of Sentinus, a registered charity promoting training in Science, technology, engineering and Mathematics in schools in Northern Ireland. Mr. Stewart was first appointed as Chairman or Warrenpoint Harbour Authority in october 2004.

Peter Conwaypeter Conway from Warrenpoint is an honours graduate in economics from trinity College Dublin and has spent over 20 years in the energy business. He managed shipping terminals at the ports of new ross and Cork and subsequently served on the Management board of esso ireland. in 1997 he returned to northern ireland and became a Director of a leading belfast Communications agency. in 2001 he established an independent consulting practice specialising in strategic and project management, economic analysis, business planning, interim management and public affairs. Peter was appointed to the Board of Warrenpoint Harbour authority in 2004 and following public competition became Chief executive of the authority in 2005. He is Vice president of newry Chamber of Commerce and is a founding member and past Chairman of the Northern Ireland Government Affairs Group. He is also a Governor of Kilbroney integrated primary School in rostrevor.

William BurnsWilliam burns was born on the outskirts of Kilkeel where he farms on the family farm. He has always had a very keen interest in the local economy as well as the farming and fishing industries. He was elected to newry and Mourne District Council in 1993, where he has served as Chairman of several committees within the Council and is currently a member of the District policing partnership. William burns is also on the board of Governor’s of two local schools Kilkeel primary School and annalong primary School. He also works closely to help with the promotion of ulster Scots culture throughout ulster.

Michael CarrMichael Carr was born and bred in Warrenpoint and has always had a keen interest in local community affairs. He has spent most of his working life in engineering and IT and ran his own golf promotion company for a period. Michael has served 10 years as a local councillor representing the people of Warrenpoint, he served as Mayor of the district in 2006/07. He takes a strong interest in the finances of Council sitting on the finance, audit and scrutiny committees. In the last Council term Michael delivered on the CCtV scheme for newry, Warrenpoint and Kilkeel. He was the inaugural chairman of the District policing partnership in newry & Mourne. With a great interest in community safety he has been appointed to the board of NIFRS (NI Fire and Rescue Service). Michael is confident that essential tourism infrastructure such as a marina and development at the ‘baths’ can be delivered in the town. on a broader stage Michael has introduced Sister Cities international to n&M and is Co-Chair of inFLa (ireland nuclear Free Local authorities) arguing against nuclear and for renewable energy.

Peter Fitzsimmons Peter Fitzsimmons spent thirty-five years working with the Swedish multi-national packaging company, SCa packaging. His career was mainly within the area of sales and marketing and for ten years he headed that function for the company in Ireland where they had five manufacturing plants. For seven years Peter was Director and General Manager for the company in ireland and in 1999 moved to Kent to become the Sales and Marketing Director for the uK and ireland. peter has had a deep interest in business and entrepreneurship in northern ireland and has served as a board member with organisations such as LeDu and enterprise northern ireland. For the past nineteen years he has been a member of the board of newry and Mourne enterprise agency and in april 2010 he was reappointed to a three year term as Chairman of ni-Co (northern ireland-Cooperation overseas), a company that is fully owned by invest northern ireland. peter is from Warrenpoint.

Serving Board Members

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STATEMENT OF MEMBERS’ RESPONSIBILITIES

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The Members are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

The Harbours Act (Northern Ireland) 1970 requires the Members to prepare such financial statements for each financial year. Under that law the Members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting practice (united Kingdom accounting Standards and applicable law). the Members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Authority and of the profit or loss of the Authority for that period. In preparing these financial statements, the Members are required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable uK accounting Standards have been followed; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Warrenpoint Harbour authority will continue in business .

The Members are responsible for keeping adequate accounting records that are sufficient to show and explain the authority’s transactions and disclose with reasonable accuracy at any time the financial position of the Authority and enable them to ensure that the financial statements comply with the Harbours act (northern ireland) 1970. they are also responsible for safeguarding the assets of the authority and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

the Members are responsible for the maintenance and integrity of the corporate and financial information included on the Authority’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Information to Auditors

each of the persons who is a Member at the date of approval of this report confirms that:

• so far as the Member is aware, there is no relevant audit information of which the authority’s auditors are unaware; and

• the Member has taken all the steps that he / she ought to have taken as a Member in order to make himself / herself aware of any relevant audit information and to establish that the authority’s auditors are aware of that information.

approved by the Members on 24 May 2011 and signed on behalf of the Members

peter ConWay Chief executive


Independent Auditors’ Report to the Members of Warrenpoint Harbour Authority


We have audited the financial statements of Warrenpoint Harbour Authority for the year ended 31 December 2010 which comprise the Profit and Loss Account, the Balance Sheet, the Cash Flow Statement and the related notes 1 to 16. The financial reporting framework that has been applied in their preparation is applicable law and united Kingdom accounting Standards (united Kingdom Generally accepted accounting practice).

this report is made solely to the authority’s members, as a body, in accordance with Harbours act (northern ireland) 1970. our audit work has been undertaken so that we might state to the authority’s members those matters we are required to state to them in an auditors’ report and for no other purpose. to the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the authority and the authority’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of members and auditorsas explained more fully in the Members’ responsibilities Statement, the Members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). those standards require us to comply with the auditing practices board’s ethical Standards for auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the authority’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Members and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statementsIn our opinion the financial statements:

• give a true and fair view of the state of the Authority’s affairs as at 31 December 2010 and of its profit for the year then ended;

• have been properly prepared in accordance with united Kingdom Generally accepted accounting practice; and

• have been prepared in accordance with the requirements of the Harbours act (northern ireland) 1970.

Opinion on other matters In our opinion the information given in the Chairman’s and Chief Executive’s statements for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where we are required to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Deloitte LLp, Chartered accountants and Statutory auditors, belfast, united Kingdom, 25 May 2011


Balance Sheet 31 December 2010


Profit and Loss AccountYear Ended 31 December 2010

Note 2010 £ 2009 £

turnoVer 1 3,292,605 3,353,171

operatinG eXpenSeS (3,113,968) (3,142,464)

operatinG proFit 178,637 210,707

investment income - interest receivable 70,734 17,901

interest payable (33,735) (27,761)

proFit on orDinary aCtiVitieS beFore taXation

2 215,636 200,847

Tax charge on profit on ordinary activities 4 (71,051) (51,702)

proFit For tHe FinanCiaL year 12 144,585 149,145

all activities derive from continuing operations.

There are no recognised gains and losses except for the profit for the financial years reported above. accordingly, no Statement of total recognised Gains and Losses is presented.

Note31 Dec 2010 £

31 Dec 2009 £

FiXeD aSSetS

tangible assets 5 26,393,460 27,742,838

Current aSSetS

Stocks 45,925 52,372

Debtors 7 777,030 1,071,799

investments 8 3,426,609 2,403,439

Cash at bank and in hand 29,765 213,288

4,279,329 3,740,898

CreDitorS amounts falling due within one year

9 (612,135) (527,912)

net Current aSSetS 3,667,194 3,212,986

TOTAL ASSETS LESS CURRENT LIABILITIES 30,060,654 30,955,824

CreDitorS amounts falling due after more than one year

erDF and other grants 11 19,360,053 20,245,909

Long term Loan from DrD 827,408 1,000,000

proViSionS For LiabiLitieS & CHarGeS

Deferred taxation 10 363,251 344,558

reSerVeS 12 9,509,942 9,365,357

TOTAL OF RESERVES, DEFERRED INCOME, LOANS AND PROVISIONS 30,060,654 30,955,824

Approved by the Members on 24 May 2011 Signed on its behalf by:

J SteWart p ConWay


Note 2010 £ 2009 £

Net Cash Inflow from Operating Activities 15 (i) 801,628 508,807

Returns on Investments and Servicing of Finance

interest paid (35,145) (12,695)

investment income received 57,458 17,279

Taxation

Corporation tax paid (61,500) (81,810)

Capital Expenditure and Financial Investment

Receipts on disposal of fixed assets 5,351 13,250

Payments to acquire tangible fixed assets (241,510) (5,153,626)

Net Cash Outflow from Capital Expenditure and Financial Investment

(236,159) (5,140,376)

Net cash outflow before Financing (526,282) (4,708,795)

Management of Liquid Resources

Cash deposited in short term bank deposits 15 (ii) (1,023,170) (1,103,280)

Financing

receipt of european regional Development Fund and other grants

11 398,126 4,727,128

Loan from DrD (84,761) 1,000,000

Decrease in Cash in the Year 15 (iii) (183,523) (84,947)

additional disclosures as required by Financial reporting Standard no 1 are provided in note 15 to the accounts.

1. ACCOUNTING POLICIES

The financial statements have been prepared in accordance with applicable United Kingdom accounting standards. The particular accounting policies adopted are described below. these have been applied consistently in the current and preceding year.

Basis of PreparationThe financial statements are prepared under the historical cost convention. The financial statements have been prepared on the going concern basis as outlined in the Chief executive’s report on page 4.

Tangible fixed assets and depreciationFixed assets are stated at cost less depreciation. no depreciation is provided either on land or on assets not yet in use. For all other assets depreciation is calculated on a straight line basis to write off their cost within their effective working lives as follows:

Capital dredging - 25 to 35 years

Maintenance dredging - 6 years

Buildings - 5 to 50 years

Plant and equipment - 3 to 20 years

Dock structures and excavations - 10 to 25 years

GrantsEuropean Regional Development Fund and other grants relating to fixed assets are shown separately as deferred credits, pending transfer to the profit and loss account on the same basis as the relevant assets are depreciated.

Leasesrentals under operating leases are charged on a straight line basis over the lease term, even if the payments are not made on such a basis.

Stocksthese are valued at the lower of cost and net realisable value with provision against cost for any obsolete or defective content.

TaxationCurrent tax, including uK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the Authority’s taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in the tax assessments in periods different from those in which they are recognised in the financial statements.

Cash Flow Statement Year Ended 31 December 2010

Notes to Financial Statements Year Ended 31 December 2010




2. PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

2010 £ 2009 £

Profit on ordinary activities is after charging/(crediting) the following:

Depreciation

owned tangible assets - charge for year 1,510,610 1,488,475

Leased tangible assets - charge for year 80,278 69,621

Amortisation of grants on tangible fixed assets (984,986) (925,686)

605,902 632,410

auditors’ remuneration 10,200 12,000

non-audit fees paid to the auditors 4,250 6,750

rental income (77,604) (90,899)

Foreign exchange loss 4,164 26,698

operating lease on car 7,187 7,088

Profit on disposal of fixed assets (5,351) (13,250)

3. EMPLOYEE NUMBERS

the average number of employees during the year was 47 (2009: 47).

4. TAX ON PROFIT ON ORDINARY ACTIVITIES

(a) Analysis of charge in year

2010 £ 2009 £

Current tax:

UK corporation tax on profits of the current year 77,298 74,315

adjustments in respect of previous periods (24,940) (5,826)

total current tax - note 4 (b) 52,358 68,489

Deferred tax:

Origination and reversal of timing differences (including impact of rate change) (34,689) (19,040)

adjustments in respect of previous periods 53,382 2,253

total deferred tax charge/(credit) – note 10 18,693 (16,787)

Tax on profit on ordinary activities 71,051 51,702

1. ACCOUNTING POLICIES (cont’d)

Taxation (cont’d)a net deferred tax asset is regarded as recoverable and therefore recognised only to the extent that, on the basis of all the evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is not recognised when fixed assets are sold and it is more likely than not that the taxable gain will be rolled over, being charged to tax only if and when the replacement assets are sold.

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a discounted basis.

Pension costs The defined benefit pension scheme (the Warrenpoint Harbour Authority Pension and Assurance Scheme) was closed to new members on 30 April 2002 and is being wound up. The defined benefit scheme was replaced on the same date by a new Group Personal Pension Scheme to which the members of the defined benefits scheme were transferred.

Normal contributions to the Group Personal Pension Scheme are accounted for by charging costs against profits as payments accrue.

All pension liabilities in respect of the defined benefit pension scheme have now been discharged.

Turnoverturnover is the amount derived from charges to port users and from rents of property in the normal course of business net of discounts, Vat and other sales related taxes.

turnover is recognised when the service has been provided.

Cash Flow StatementFor the purposes of the Cash Flow Statement the treasury bank deposits with up to one year from maturity on acquisition are deemed to be a liquid resource.

Provisionsprovisions are recognised when a past event gives rise to a present obligation and when a settlement amount can be reasonably estimated.

Asset Held for Saleassets held for sale are held at the lower of cost or net realisable value.

Foreign Currencytransactions denominated in foreign currencies are translated at the exchange rate ruling at the date of the transaction. all assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. The resulting gain or loss is recorded in the profit and loss account.


4. TAX ON PROFIT ON ORDINARY ACTIVITIES (Cont’d)

(b) Factors affecting tax charge for the year

2010 £ 2009 £

Profit on ordinary activities before tax 215,636 200,857

Profit on ordinary activities multiplied by standard rate of corporation tax in the uK of 28 %

60,378 56,240

Effects of:

other expenses not deductible for tax purposes 2,673 1,063

ineligible depreciation 9,296 7,574

entitlement to ibas net of depreciation 3,874 8,487

Depreciation for period in excess of capital allowances 21,417 21,890

Timing differences not recognised - 2,245

Other timing differences (181) (2,850)

Small companies relief (20,159) (20,334)

adjustments to tax charge in respect of previous periods

(24,940) (5,826)

Current tax charge for year 52,358 68,489

(c) Factors the may affect future tax charges

the March 2011 budget included a reduction in the rate of corporation tax to 26% with effect from 1 April 2011. The rate had previously been reduced from 28% to 27% by FA (no.2) 2010. the reduction in the rate of corporation tax to 26% was substantively enacted on 29 March 2011.

Fa 2008 provided for the phased withdrawal of industrial building allowances over the period to 2011, with no tax relief being available beyond that date. this loss of tax relief is significant for the Authority given their investment in Industrial Building Allowance relevant assets and may result in an increase in the tax payable by the authority, all other things remaining the same.

5. TANGIBLE ASSETS

Land and Buildings £

Dredging £ Dock Structures and Excavations £

Plant and Equipment £

Total £

Cost:

at start of year 8,072,766 6,756,973 23,390,623 8,612,640 46,833,002

additions 21,315 46,836 125,839 47,520 241,510

Disposals - - - (54,150) (54,150)

at end of year 8,094,081 6,803,809 23,516,462 8,606,010 47,020,362

Depreciation:

at start of year 3,873,205 4,195,640 5,379,949 5,641,370 19,090,164

Charge for year 306,984 195,890 726,919 361,095 1,590,888

Disposals - - - (54,150) (54,150)

at end of year 4,180,189 4,391,530 6,106,868 5,948,315 20,626,902

Net Book Value:

at end of year 3,913,892 2,412,279 17,409,594 2,657,695 26,393,460

at start of year 4,199,561 2,561,333 18,010,674 2,971,270 27,742,838

included in land and buildings is land with a cost of £686,677 (2009 - £686,677) in respect of which no depreciation is provided.

the net book value of land and buildings comprises freehold property £3,833,256 (2009 - £4,059,962) and short leasehold property £80,636 (2009 - £ 108,514).

6. CAPITAL COMMITMENTS The annual commitment under non-cancellable operating leases was as follows:

2010 £ 2009 £

Leases expiring:

in one year or less 12,833 -

Within two to five years - 49, 334



7. DEBTORS

2010 £ 2009 £

Due within one year:

trade debtors 561,669 474,869

other debtors 8,624 79,048

prepayments and accrued income 206,737 517,882

777,030 1,071,799

8. INVESTMENTS

2010 £ 2009 £

bank deposits 3,426,609 2,403,439

investment balances are held on short term deposits. the authority has set aside short term investment balances to finance a future maintenance dredging campaign, anticipated by the Members to commence during 2011.

9. CREDITORS - Amounts falling due within one year

2010 £ 2009 £

trade creditors 79,116 95,137

Corporation tax 65,174 74,316

other taxation and social security 38,080 38,295

other creditors & accruals Loan from DrD

341,934 87,831

320,164 -

612,135 527,912

10. PROVISIONS FOR LIABILITIES

2010 £ 2009 £

accelerated capital allowances 364,462 345,994

Other timing differences (1,211) (1,436)

Deferred tax 363,251 344,558

Deferred Tax:

provision at start of year (at 28%) 344,558 361,345

Current and previous year timing differences 18,693 (16,787)

provision at end of year (at 27%) 363,251 344,558

11. ERDF AND OTHER GRANTS

2010 £ 2009£

at start of year 20,245,909 17,117,701

Grants received (9,521) 3,646,247

Grants receivable 108,651 407,647

Released to profit and loss account (984,986) (925,686)

at end of year 19,360,053 20,245,909

12. RESERVES

2010 £ 2009 £

Profit and loss reserve:

at start of year 9,365,357 9,216,212

Profit for the financial year 144,585 149,145

at end of year 9,509,942 9,365,357

Statement of movement of members’ funds:

Members’ funds comprise of profit and loss reserves, for which movements during the year are detailed above.

13. INVESTMENT IN SUBSIDIARIES

the authority holds two ordinary £1 shares, not yet paid, representing a 100% holding in Warrenpoint bulk Liquid Storage Co. Limited, a dormant company. Consolidated accounts are not prepared as the subsidiary is wholly immaterial.

the authority also holds two ordinary £1 shares, not yet paid, representing a 100% holding in Warrenpoint Harbour authority Marina Limited, a dormant company. Consolidated accounts are not prepared as the subsidiary is wholly immaterial.

14. PENSION SCHEMES

The Authority operates a defined contribution pension scheme for staff. The assets of the scheme are held separately from those of the authority, being invested with insurance companies. normal contributions paid during the year to the Group personal pension Scheme were £82,551 (2009: £79,816).

Normal contributions paid during the year to the staff defined contribution scheme were £35,986 (2009: £34,900).


28 29

15. NOTES TO THE CASH FLOW STATEMENT

(i) RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES

2010 £ 2009 £

Operating profit 178,637 210,707

Depreciation charges (net of grant release) 605,902 632,410

Profit on sale of tangible fixed assets (5,351) (13,250)

Decrease in stocks 6,448 8,414

increase in debtors 9,048 218,238

increase / (decrease) in creditors falling due within 1 year 6,944 (547,712)

Net cash inflow from operating activities 801,628 508,807

(ii) ANALYSIS OF CHANGES IN NET FUNDS

At 1 Jan 2010 £ Cash Flow £At 31 Dec

2010 £

Cash at bank and in hand 213,288 (183,523) 29,765

Current asset investments 2,403,439 1,023,170 3,426,609

2,616,727 839,647 3,456,374

(iii) RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS

2010 £ 2009 £

Decrease in cash in the year (183,523) (84,947)

Cash inflow from movement in liquid resources 1,023,170 1,103,280

Movement in net funds in the year 839,647 1,018,333

net funds at beginning of year 2,616,727 1,598,394

net funds at end of year 3,456,374 2,616,727

PORT OF WARRENPOINT | Warrenpoint Harbour autHority PORT OF WARRENPOINT | Warrenpoint Harbour autHority

16. CONTINGENT LIABILITY

European Regional Development Fund GrantsIt is a condition upon which ERDF grants are paid that the fixed infrastructure assets to which they relate remain in use by Warrenpoint Harbour authority and in their possession for a period of at least 10 years. any other assets which are similarly assisted must be retained for periods which reflect their economic life. In the event that either of these conditions is breached, a liability to repay any or all of the grants will arise.



Notes to the Accounts 31 December 2010

TRADE STATISTICS (UNAUDITED)

2010 2009 2008 2007

total tonnage 2,555,017 2,415,968 2,470,325 2,504,600

iMportS 1,489,926 1,449,301 1,557,831 1,654,006

eXportS 1,065,091 966,667 912,494 850,594

Cross channel 2,225,136 1,940,510 1,875,952 1,855,851

Foreign (direct) 329,881 475,458 594,373 648,749

as part of the blues on the bay Festival, the netherlands registered tall ship, artemis, docked in Warrenpoint

32 PORT OF WARRENPOINT | Warrenpoint Harbour autHority 33PORT OF WARRENPOINT | Warrenpoint Harbour autHority

Social & Community

Warrenpoint Harbour Launch, the Maid of Clonallon, assists in national Sailing regatta on Carlingford Lough


Social & Community

Senior rya (royal yachting association) instructor Joe byrne conducting safety training in Warrenpoint Harbour

the tall ship atlantis, on a public cruise from Warrenpoint Harbour

PORT OF WARRENPOINT | Warrenpoint Harbour autHority 35

Warrenpoint, County Down, Northern IrelandTel: 00 44 (0)28 4177 3381Fax: 00 44 (0)28 4175 2875

PORT Of WARRENPOiNTWarrenpoint Harbour Authority

www.warrenpointharbour.co.uk

warrenpoint harbour annual report

Documents

harbour board

warrenpoint region

trust port

mourne region

kieran campbell

josephine ohare

michael carr

peter conway