Steam Packet reports higher revenue and busiest passenger year since 2007, despite dip in profit

Directors’ report show growth in passenger and freight income in 2024, while costs rose and the company seeks more time to replace Manannan

The Isle of Man Steam Packet Company says it carried its highest number of passengers in more than 15 years in 2024, as new directors’ reports show revenue rising strongly despite profits falling back from the previous year.

According to the operating company’s report, revenue rose to £87,157,144 (£87.1 million) in 2024, up from £77,950,285 (£77.9 million) the year before, while profit attributable to equity owners - the amount of profit that belongs to the shareholders of the company after everything else has been accounted for - fell from £11.7 million to £10.5 million.

The wider parent group report also records a fall in profit, from £8 million to £6.8 million. Both reports were audited independently with accountants saying the accounts gave a “true and fair” view and identified no uncertainties.

The Steam Packet reports say passenger numbers reached 630,279 in 2024, described as the highest total since 2007 and up 1.2 percent on the previous year.

Passenger ticket revenue rose by 6.8 percent, with the company pointing to strong TT traffic, while passenger service income, including on-board spending, increased by 12 percent.

Freight revenue was up by 19 percent, which the company believes is driven by higher import volumes into the Island.

Directors say the flagship vessel Manxman played a major role in that performance. The vessel is described as the ‘most advanced’ in the fleet, offering “greater passenger and freight capacity as well as improved lounges, cabins and on-board facilities”.

At the same time, the reports make clear that rising costs affected the bottom line. The operating company says operating profit fell to £9.7 million, down eight percent while the parent group says operating profit fell to £7.2 million, down 9.9 percent.

Directors attribute that largely to higher operating costs, a full year of depreciation linked to Manxman, and a £2.2 million impairment relating to Arrow.

The group report also says net debt fell from £126.7 million to £114.7 million after £5.2 million of debt repayments and £2.5 million of interest payments to Treasury.

The documents also set out several operational developments during the year.

A strategic pricing reset was introduced in October 2024, including a 10 percent cut in ‘Flexi’ fares, free travel for children, changes to freight pricing, online booking for private vans, and a longer published timetable.

The company claims the aim was to make travel more ‘affordable, accessible and transparent’.

Another notable change was the move of Manannan services to the new Liverpool terminal, with sailings beginning there from June 2024 after trials. Directors say the terminal offers a ‘much improved’ customer experience, though they add that work with the Department of Infrastructure is continuing to address issues as they arise.

Looking ahead, the reports highlight a potentially significant issue for the fleet.

Under the Sea Services Agreement, the fast-craft Manannan is due to be replaced by 31 December 2026. However, the board says it is seeking an extension to that deadline so any replacement can balance customer expectations with environmental considerations.

SPC says it spent £14.5 million with Isle of Man-based suppliers during the year, up from £12.1 million in 2023, and continued sponsorship of local events, clubs and athletes.

It notes it supported more than 200 individuals, charities and organisations.