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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
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.
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
Both airports are liabilities-this is heading to zero, all down to previous management and their shenanigans
We are all thinking the same. Not looking good.
I have lots of sympathy for investors here but none for the management who were part of a consortium that shafted shareholders of Flybe a couple of years ago - so their demise is karma in my eyes.