P&O Ferries has reportedly sought hundreds of millions in loans from its Dubai-based owner to stay afloat, including as millions went on staff cuts.
Some £47.3 million was spent on restructuring in 2022, including on a controversial plan which saw almost 800 staff fired and replaced with cheaper workers.
These were paid an average of £5.50 an hour, with some earning as little as £4.87, below the UK’s minimum wage but legal given staff work offshore.
Costs included legal and consultant fees and allowed the ferry operator to cut its overall wage bill by £21.3 million, accounts for 2022, seen by the Financial Times and Sky, said.
Loans from sole shareholder DP World were said to have increased by £130 million to £295 million over the year, having since climbed to £365 million.
P&O faced intense scrutiny over the cuts, which saw many staff fired over video messages, but argued these were necessary to stem losses.
Britain’s Insolvency Service had investigated whether any criminal offences were committed and ultimately ruled there was no prospect of conviction.
Losses fell from £375 million to £249 million over the year, while revenue ticked up by £83.3 million to £918 million, the accounts also showed.
P&O directors added in the statement that it had continued to recover from challenges on the back of the pandemic and Brexit.
“Transformational actions that commenced in 2022 and continue through into 2024 will equip the business to grow profitably when demand rises in the coming years,” they said.