Sutton Harbour Holdings Regulatory News (SUH)

8 Jul 2009 13:08



Sutton Harbour Holdings plc (the "Company")

AGM Trading Statement

At the Annual General Meeting of the Company held today, Michael Knight, Chairman, made the following statement:

"Economic conditions affecting the property and transport sectors of our business continue to be challenging and there is some evidence of a further weakening in demand for air travel. We continue to pursue our strategy of developing a mix of businesses, which are asset-backed and provide sustainable annuity revenues for long term growth and increased shareholder value, whilst managing risks in the current economic environment.

The principal development since we reported our preliminary results for the year ended 31 March 2009 to shareholders in June, relates to the sale of surplus land at Plymouth City Airport (PCA). This complex planning application was managed in house, demonstrating our expertise in this area. As announced on 30 June 2009 the PCA land sale will produce significant revenues for the Group over the next three years, combined with capital enhancements and environmental improvements for the airport.  

In our transport sector, we have commenced our new route to London City Airport. This has started well, receiving favourable publicity for Air Southwest ("ASW") and emphasising the valuable benefits of travelling to the capital by air as opposed to by train. Due to the economic conditions, pricing remains competitive on our routes, but passenger numbers are holding up well compared to many UK and European regional airlines. ASW is a compact, niche regional airline and its management continues to focus closely on the operational and financial performance of the business.

Overall, our first half results will benefit from the sale of the first tranche of airport land, and this will mitigate the effect of the challenging economic conditions and the set up costs of the London City route for ASW. The Marina and Fish Market continue to trade well. Whilst the outlook for transport is dependent on improved economic conditions, there is likely to be further regeneration revenue recognised in the second half as we continue to realise value from our pipeline of projects."

8 July 2009

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