Nothing but plain sailing on the horizon, say DFDS.

Byline: By Howard Walker 

North-East holidaymakers and Scandinavian shoppers have helped the parent group of Tyneside-based ferry operator DFDS Seaways record a 10pc jump in profits.

Denmark-based DFDS A/S, which is listed on the Copenhagen Stock Exchange, said that despite difficult market conditions in 2003, including the impact of the SARS virus, the war in Iraq and increased competition from budget airlines, it recorded pre-tax profits of 157m Danish Kroner (pounds 14.1m).

A higher level of activity predicted for this year has led the company to forecast an increase to 175m DK (pounds 15.7m) for 2004, a rise of more than 11pc. DFDS says it has developed a "clear strategy" to achieve its predicted growth and aims to expand its position as the leading passenger shipping company in Europe.

DFDS Seaways made a substantial contribution to the group's increase in profits, increasing passenger numbers on its routes by 3.3pc during 2003, taking total passenger numbers to almost 650,000. The North Shields-based company said that the North-East's appeal to shoppers from Scandinavia and Northern Europe had helped to boost numbers.

DFDS Seaways UK managing director, John Crummie, said: "We are delighted with the overall performance of DFDS A/S and encouraged by the performance of DFDS Seaways, despite a very difficult year for the industry.

"I am confident that DFDS Seaways will return a higher level of profit, and return on capital invested, in 2004.

"The year has started positively for the UK market, helped by the introduction of flexible pricing which has seen passengers booking earlier, and yields have increased as a result." Mr Crummie added that DFDS Seaways had introduced a range of new products which had been selling "extremely well".

Changes for 2004 include the replacement of the older Prince of Scandinavia ferry with the Duke of Scandinavia on the Newcastle-Amsterdam route, the company's most popular in the UK.

Passenger and vehicle numbers on its sailings from the Tyne have also continued to show year on year growth.

The company won the title of Best Ferry Operator in last year's Daily Telegraph Travel Awards. Group-wide, DFDS A/S operates 21 routes, owns and operates 23 ships and deploys 28 chartered vessels.