Ferry firm Red Funnel insists it is in a "resilient" financial position as it seeks to quash "untrue" talk of administration.

Prior to the publication of its latest accounts, CEO Fran Collins has told the Echo's sister paper the County Press that the firm is in a "very strong position".

Ahead of their release, Ms Collins revealed the company has seen a reduction in profitability, but is reporting an increase in turnover.

She also confirmed no dividends were paid to shareholders in 2023.

Red Funnel has also secured financial backing from the firm's lenders for at least the next 18 months, she said.

Ms Collins said: “Within a climate of high inflation and low consumer confidence, we maintained market resilience with some segments demonstrating a post-Covid recovery leading to a 10.4 per cent increase in turnover.  

"The Red Jet service continued to recover towards pre-Covid levels, with passenger numbers up eight per cent and most vehicle passenger numbers in line with prior year, except for coach travel which reported a four per cent increase."

Ms Collins said the firm "continued to absorb" what she called "significant upward cost pressures", including rises in inflation, fuel costs and labour costs.

“The cost increases reduced profitability compared to prior year, but with 2023 EBITDA (earnings before interest, taxation, depreciation and amortisation), of £11.9m leaving Red Funnel in a resilient position", she said.

"The business continues to generate robust cash levels which are reinvested to improve reliability and service."

Ms Collins also said rumours of current or possible administration are "categorically untrue".

Although appearing as 'overdue' on Companies House, the cross-Solent operator has confirmed it did file its audited financial statements before the March 27 deadline, submitting them on Thursday.

Financial statements were prepared and audited 'on a going concern' basis, meaning the company is working with interested parties for future investment, the CP is told.

She said: "We are in a very strong position with an ambitious future that takes us well beyond the investment process currently underway, and are fully focussed on ensuring that Red Funnel is properly funded to operate sustainable and responsibly for decades to come.”

Looking forward, she said the priority is to improve the reliability of the firm's existing fleet, as well as progressing with plans for new tonnage.

The company has recently entered a partnership with Artemis, which will lead to the construction of a new Red Jet vessel, as well as the design and build "of a more modern and sustainable vehicle fleet."