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Perhaps now is the time for the Management to advise where the sale proceeds have actually gone from the bio mass £100 sale? To make it all clear to shareholders. Are we going to get any actual benefit apart from their own pension scheme?
Also it would be good to see how the expansion is going with the routes promised for 2024 which is now what we have to look forward to, and we understand why the post was given to the exec who came into us after serving Birmingham International Airport. Easyjet could easily (excuse the pun) mop up the purchase if they wanted to. USD1B is worth what would that be the equivalent of say 10 large body aircraft? Easy!
We are all thinking the same. Not looking good.
Both airports are liabilities-this is heading to zero, all down to previous management and their shenanigans
Southend Council owns the freehold of the airport, but it has been leased since 1994 to London Southend Airport Company Limited, which is now a subsidiary of the Stobart Group.
source Google
SC - Tottenham Stadium cost about £1bn. It brings in huge revenue through football, other sporting events and concerts. and moreover generates positive cash and a decent profit and is sustainable. The income is essentially guaranteed. And is considered the best sports stadium in the world. I'm not sure Southend Airport can say it's the best airport in the world!
LSA on the other hand is and has been loss making - eye watering losses in fact and has no credible plan or forecast to flip into any sort of profit. The only way that the 'assets' of LSA can create a ROI is by operating as a profitable airport. The runway, terminal, control tower etc... are only assets if they are utilised as an airport. If not they are white elephants....in fact the flip to being 'liabilities' as the cost to operate them far exceeds any realistic revenue earned from having them. It haemorrhages cash at an alarming rate. It's too far away from and on the wrong side of London to be considered a proper London Airport, and too close to London and the other 'proper' London airports to be considered a regional airport. The business model is all wrong. Since Stobart / Esken took over the eco system of businesses there has all but disappeared due to the myopic vision of BODs past and present who relentlessly forced these businesses out in pursuit of low cost airlines. It has failed yet that seems to be the only path they follow.
A better football comparison would be Colchester United. in 2010 they spent over £20m on a new stadium with a capacity of over 10,000. Thinking that this would in turn generate the revenue so they could push up the leagues into the promised land. In reality they languish at the bottom end of the bottom division with an average gate of 2,500 - or 25% capacity. They have a financial black hole of over £30m now. The comparison is further illustrated by the fact the main 'asset' costs a fortune to run and is not really sellable for anything else than it's specific purpose. Exactly the same as the assets of LSA. The difference being that LSA is currently running at less than 2% capacity.
Esken would do well to offload this liability as soon as possible.
I do not know how much Southend Airport is worth as an airport, but if Tottenham Hotspurs ground cost £2billion to build then why not £1billion for a going International Airport? Or if not out it could be prime building land and lets face it Airports do carry a large area of land.
I'm sticking in here as I have a sneaky feeling there Southend might be worth far more than people imagine but then I am not an Airport Estate agent.
Obviously very volatile at this price now, so could go up in high percentages as well as down. GLA
Correct
Please correct me if I'm wrong but it seems the only real asset Esken now have is Southend Airport? That being the case what is the realistic price they could sell their 'currently' 70% for? This assuming Carlyle don't snatch it through default mechanisms. Lets say they somehow realise £100m for that 70%, would they be able to settle all their liabilities and would there be anything left for shareholders? Is this stock as worthless as the current 1.4p suggests it is?
Please correct me if I'm wrong but it seems the only real asset Esken now have is Southend Airport? That being the case what is the realistic price they could sell their 'currently' 70% for? This assuming Carlyle don't snatch it through default mechanisms. Lets say they somehow realise £100m for that 70%, would they be able to settle all their liabilities and would there be anything left for shareholders? Is this stock as worthless as the current 1.4p suggests it is?
I think those listed as shareholders should be named and shamed-they have burned a fortune in a company which has had a car crash balance sheet since the days of previous deluded management.The evidence was there but they chose to ignore it
I will surprised if the equity is worth anything whatsoever.
As I have said for years, there are too many airports in the U.K.-that takes the valuations on Southend and Carlisle to a very low level
Shameful performance but I don’t blame the current BOD-they inherited a shambles
One should always look at the investors. i.e. Toscafund Asset Mgt 27.80
Strategic Value Partners 8.97
Harwood Capital 7.98
Mr Richard I Griffiths 7.17
JPMorgan Securities 6.02
Cyrus Capital Partners 5.24
Hargreaves Lansdown Asset Mgt 4.53
Lombard Odier Asset Mgmt 3.60
Schroder Investment Mgt 3.30
Polygon Investment Partners 3.24
Maybe those on here know more than all of them collectively together. Or they have at idea on the value now and future value of the Airport at Southend. I hadn't realised they still owned Carlisle either although I know they were at one time wanting a freeport there to serve Ireland and Scotland. GLA
What sort of lunatic holds shares in a near insolvent company that has lost £400m in 5 years (with no sign of disrupting that spectacular trend)?
Rather than look to everything being negative some will look for opportunities as Results said they are talking to a number of major airlines about expansion and new routes for next year. Erh why would the Exec from Birmingham International airport whose expertise is for new routes join the firm then if a complete loss?
Worth holding a few of these shares to provide some speculation i.e. if one wants to accumulate and balance a portfolio. Every share carries risk. Without any risk one does not earn - if one carries a loss this can be offset against gains. This year we do not want too many gains based on the changing CGT thresholds. Everyone to their own.
This is in a spitfire dive-and some of you will remember me harping in about the naughty 2024 Bond and its crushing impact on the balance sheet.Where are you Gerry?
They can’t even pay the coupon on the Bond-simply increasing the rate via a PIK.Desperate
Very in depth accounts which do not show the true value of an idea in value of Southend Airport? How much value can you put on an airport that must have a large amount of prime land which could go up in value if they say "they are talking to a large number of Airlines about expansion to routes?" The desperately need more income for sure and I was also surprised of how many other assets they have held, but they have enough cash to continue for the time being, hopefully interest rates will come down, and this could all change over night. I live in hope my gut feeling is this will succeed in the end, and someone will see this as a great opportunity. GLA.
From a Southend Airport perspective the news of EasyJet is hopefully good news for the future for the new owners . For Esken though it's a bit different. £60m loss in 6 months to August for the group. Losses of over £27m for the airport in the FY to Feb 2023, which includes a staggering £17m in interest.
The extra flights and trajectory it's showing should add a bit of value to the sale of the airport hopefully but it's clear that CGI are the vultures waiting to pounce when the time is right and will surely look to get the airport for as little as possible. They are firmly in the driving seat and already showed their hand with the court proceedings. It's hard to see any proceeds from offloading the airport, however that transpires, going into the shareholder pot.
As LSEnd main sponsor looks good for Easy J -they also refer to expanding Euro flights and Easy holidays. Record H2 results too. Shows the segment to be in a recovering mode. (Rolls -R look far better now too).
Not seen the new routes expected yet! Apart from some new winter routes being extended into the summer!
However do not agree with an enhanced Board remuneration package based on results.
Feel shareholders will have fun voting this down at the next open meeting, or show their disgust unless results inprove.
For Carlyle Groups action -seems like a panic from their own senior management team that is changing at the top eversofast, with their own shareholders very concerned about their own performance being honest. Bloomberg spoke recently about shareholders revolts and their change of management at the top where they had been making wrong decisions, and where their own share price has tanked.
With the prospect of cheaper loans coming the likelihood is increasing this loan will become terminated and replaced with better corporate funding under Uk law which is no doubt the legal jurisdiction over any dispute in this case.
Lets also hope the new appointment for the airport from an experienced developer from Birmingham International Airport will bring in new business to. He must have seen an opportunity to join!! GLA.
Looking like it mate.
I don't really understand the three resolutions. What choice is there? Is this another m0ther fuc4ing investment completely down the toilet?
I agree-shot across the bows
The upside is for the Directors in recognition of the great value they have brought to the share holders over the years.
Quote from their own statement.
"The Board also intends to introduce a new Executive Remuneration Scheme which will facilitate certain incentive entitlements for its Executive Directors"
This seems staggering to me.
Someone thinks there is a penny or two of upside with ESKEN. A bit of faith or just averaging down. All will be revealed after the court injunction has been resolved, with luck in esks favour. I feel it is a cheap shot to grap the business on the cheap. Take care all.
Poor price in my view-at least compared to what it was worth a year ago