Last checked at 14 Jul 2010 12:00
Sutton Harbour Holdings plc (the "Group")
AGM Trading Statement
At the Annual General Meeting of the Company held today, Michael Knight, Chairman, made the following statement:
Trading conditions throughout the group have changed little since my year end report. The marine sector has made a strong start to the year, although the transport sector's performance continues to be hampered by difficult economic, as well as unforeseen environmental, factors. The period of Icelandic volcanic ash disruption in April 2010 was a set-back and in addition to the immediate losses it has had the effect of deterring some potential passengers.
In May, we announced the decision to separate Air Southwest from the Group and we have been working with potential purchasers to achieve a sale of the airline subsidiary. Our objectives include the continued employment of the staff and maintenance of operations at Plymouth City Airport. Negotiations continue and we will make a further announcement as soon as is possible. However, it is now expected that a significant loss will be incurred on disposal of Air Southwest which will be treated as a discontinued operation in the Group's accounts. This loss disappointing but the Board believes it is in the long-term interests of the company to focus on our strengths and to eliminate the volatility inherent in airline operations. Trading from continuing operations is currently in line with expectations.
Our investment property portfolio is performing well and continues to provide quality earnings. The pipeline of regeneration projects continues to provide visibility of future profits for the Group. Although projects are being progressed only at a pace which balances resource and risk, the group expects to sell the option on the third tranche of airport land towards the end of the year. In addition, negotiations are continuing positively withthe BBC to provide new accommodation at East Quays and further information will be made available when these have been concluded.
Further phases in Exeter, Portland and Swansea are also being prepared to take effect as economic circumstances permit and we are positioning the company to take advantage of property and marine related opportunities in other localities.
The Group expects to clear the way on a number of important issues over the summer period and to progress with the pipeline of regeneration projects. This will enable management to focus attention on new opportunities aligned with our core strengths of regeneration and partnering skills.
14 July 2010
Enquiries:
Nigel Godefroy, Group Chief Executive
Sutton Harbour Holdings plc Tel: 01752 204186
Tim Worlledge, Evolution Securities Tel: 020 7071 4300
Richard Day, Arden Partners Tel: 020 7398 1600
Paul Vann, Winningtons Financial Tel: 0117 985 8989 or 07768 807631