The David MacBrayne Group, which comprises the principal operators of the Clyde and Hebrides ferry services and the Northern Isles ferry services, today (Wednesday, October 1) published its Annual Report for 2007/08.

The Annual Report covers the first full year of trading for the main subsidiaries, CalMac Ferries Ltd and NorthLink Ferries Ltd, together with Cowal Ferries Ltd, which operates between Gourock and Dunoon, and Rathlin Ferries Ltd which operated between Ballycastle and Rathlin Island in Northern Ireland until 30 June 2008.

David MacBrayne Group Chairman Peter Timms said: "This has been another challenging year for the whole group which saw CalMac Ferries awarded the contract to operate the Clyde and Hebrides Ferry Services (CHFS) for six years from October 2007: at the same time we were disappointed to be unsuccessful in retaining our contract for the Ballycastle to Rathlin Island service.

"However, as this report shows, there remains much to be pleased about with all companies performing satisfactorily for reliability and punctuality, and traffic carryings in all categories in line with our projections."

Mr Timms said that the Group revenue from fares and other sources was £82.1 million and that operating costs of £150 million were in line with expectations. The group received a total of £69million in grants from the Scottish Government and subsidy from the Northern Ireland Department for Regional Development.

In his foreword to the report, which was laid before the Scottish Parliament today, Mr Timms highlighted that two new vessels had been brought into service in the CalMac fleet, MV Loch Shira to replace MV Loch Alainn on the Largs to Cumbrae service, and MV Argyle to work alongside MV Bute on the Wemyss Bay to Rothesay service. He also highlighted the installation of additional cabins on the two NorthLink Ferries vessels which mainly serve Shetland, together with the development of new livestock containers for the Northern Isles routes.

He reported that port facilities have also been enhanced with plans for more improvements in the pipeline. Covered walkways have been provided at Oban to give passengers sheltered access to ships from the terminal building, work is ongoing to upgrade berthing facilities at Kennacraig in Argyll, Port Ellen on Islay, and Raasay, and the redevelopment of Largs also begun during the year.

The report revealed that in the period from the commencement of the CHFS contract in October 1, 2007 to March 31, 2008, CalMac achieved punctuality, reliability and customer service levels of nearly 100 per cent while NorthLink similarly achieved punctuality, reliability and customer service levels of nearly 100 per cent during the full year to March 31, 2008.

Looking to the future, he said CalMac had been implementing systems to support the Scottish Government's pilot scheme for Road Equivalent Tariff (RET) fares on services to and from the Western Isles which begins on October 19, 2008.

The Annual Reports of the David MacBrayne Group and its main operating subsidiaries are available on the CalMac website (www.calmac.co.uk) and on the NorthLink website (www.northlinkferries.co.uk).

Ends

Note to Editors

1. Please note that figures for 2007/2008 cannot be directly compared with those for 2006/2007. The Annual Report for the David MacBrayne Group covers the period from April 1, 2007 to March 31, 2008; however as a direct result of corporate restructuring, the Group financial information throughout the Report for 2006/2007 only relates to the period from the commencement of trading of the main operating companies, CalMac Ferries Ltd and NorthLink Ferries Ltd which took place during that year.

Ends.

For further information contact:

David Cannon

Public Affairs Manager

CalMac

Tel: 01475 650371

Mob: 07595 092332

Fax: 01475 650388

Or for Northlink;

Derek Douglas

Beattie Communications

07730 415092

01324 602550