RE: ?24 Jun 2019 20:21
NigeCO - ref your post - 16.22. I'd mention at the outset that yes I am LTH here at STOB, though its not one of the largest holdings by value in my portfolio. BP, GSK, LGEN, TATE & TESCO are my 5 top holdings. The reason for my volume of posts here on STOB is purely to defend the company and provide balance in reply to a small number of ex FLYB's who post here with an agenda to disrupt.
Looking at the STOB growth story, i'd suggest that the expansion targets in the energy division, are not to be sniffed at. Id this year delivers at year end run rates of 1.7m tonnes pa that would produce a useful increase in bottom line revenues the company is targeting 2m tonnes pa this year.
Moving on to the aviation division and particularly Southend airport, its long been a concern in the uk aviation industry that London airports, are up against capacity issues, in terms of passenger numbers, particularly during the peak summer weeks.
The debate over the plans for the 3rd runway at Heathrow, will drag on imv. Southend is seen as the solution to the expansion challenges, for London. STOB saw the opportunity at Southend and have invested heavily, and this investment ks now reaping rewards.
The target of 5m passengers for 2022, has been a target, for some time now. With both EZJ and RYA basing planes at Southend and both targeting 1m passengers each this year, i see the 2.5m passenger target for 2019 as very likely.
STOB has 60% of the funds raised from the £50m ESL bond raise post year end this spring, for further investment at Southend.
So the passenger demand is there, can Southend deliver ? Looking at Newcastle airport it achieved 5.3m passengers in 2017- 2018 based on circa 53.7k aircraft movements. At present Southend has an annual operational air transport movement limit of 53300. ( presently there are night flight restrictions between 2300 hrs - 06.30 hrs )
A check of daily arrivals and departures, at Southend, ( today 34 in and 34 out ) demonstrates, there is ample room for expansion in flight no's.
Passenger customer satisfaction levels at Southend are second to none, look at the Which awards. Those happy passengers are very to use the airport again and no doubt they will pass on their positive experience, word of mouth is a positive message.
The longer term plan to achieve 10m passengers, look ambitious, however Warwick Brady's bonus scheme is structured in a way that puts him on the same page as shareholders.
1 - he has to build up and hold a shareholding in STOB 2x his annual salary, so at the present sp, he has a lot more shares to buy. Or of course the value of his holding rises as the sp rises.
2 - he has to achieve the passenger growth projections
3 - a buyer for the airport needs to be found.
I'll continue to trade and top slice to increase my holding here at present sp levels.
G
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