RE: Part opening27 Aug 2020 16:17
Hi Birddog - You raise some valid points in your latest post, and perhaps we are on the same page to some extent, though again drawing different conclusions from the info provided.
To be honest I'd be pleasantly surprised if they generate half the 2.14M passengers, achieved last year, we've had all pretty much the whole of the first 6 months trading for STOB Feb - Aug end. The busy spring to summer period has passed. We now move towards to the Sept - Feb period, which is historically quieter, plus the EZJ decision and quarantine challenges.
I suggested previously that the Southend project has been put back 12 - 18 months. As to a break even passenger number position - Surely that is influenced by the amount of Capex spent in any particular year. I know I've raised this many times, but it continues to be ignored.
In previous years capex has been substantial - it had to be to get the airport from A - B. This year STOB are only spending £10m on additional improvements, and the BOD has outlined capex for the next two years, again at much reduced levels in that RNS I continue to flag, lol.
One thing I would say- Southend has demonstrated that passengers will happily use it if and when flights are provided, 2.14m confirmed this last year.
May I focus in on one comment you make in your second paragraph where you say :
" the debt it has to service needs a huge amount cash"
I'd remind you that following the placing a few weeks ago STOB cleared it's bank debt, and was sitting with cash on account.
It now has its increased £120M jt RCF, which it will utilise, over coming months. ( I did cover this with you in my post on 5th Aug ).
The BOD outlined it's RCF usage expectations ( based on a worst case of zero passengers at Southend until Feb 2021 end ). The figures are there for all to read. Their expectation as the likely RCF headroom by Feb 2021 end is also there.
May I politely ask, are you distrusting of the cash / debt figures provided by the BOD, and the projections - if that's the case, could you outline, where is it that you disagree with the info provided.
It's very likely that operations at Southend will need to be wound down through the autumn and winter months - all things being equal, and regrettably some further redundancies are likely when the Govt. furlough scheme ends.
It's no bed of roses,for Aviation, I agree, roll on a solution to passenger travel, I from one would like a break.
G
Sign In
Follow the stocks
