Last checked at 1 Dec 2010 14:30
For Immediate Release 1 December 2010
Sutton Harbour Holdings plc ("Sutton Harbour" or the "Group")
Completion of the Sale of Air South West Limited
Further to the announcement on 20 September 2010, that Sutton Harbour had reached an agreement to sell its wholly owned airline subsidiary, Air South West Limited (the "Sale"), to Eastern International Airlines Limited ("Eastern"), Sutton Harbour is pleased to announce the completion of the Sale on 30 November 2010. In accordance with the terms of the sale and purchase agreement, the trading losses of Air South West Limited from the 1 October 2010 until the completion of the Sale, will be borne by Eastern.
The consideration for the Sale is £1.5m for 100 per cent. of the share capital of Air South West Limited less an expected adjustment of approximately £2.8m for unflown ticket revenues and working capital. The Sale is therefore expected to result in a net cash outflow from Sutton Harbour of approximately £1.3m from the Group to Eastern. The loss on the Sale, together with costs, will be approximately £7.3m, excluding trading losses incurred by Air South West Limited during the six month period ended 30 September 2010 and any tax credit.
Michael Knight, Chairman, said:
"This is an important strategic disposal for the Group's future and will allow us to focus on activities related to its core strengths in waterfront regeneration and marine operations. Air Southwest had made good contributions to the Group's profits prior to the deterioration of trading experienced over the past two years resulting from economic, environmental and competitive factors. Joining a larger UK regional airline company gives Air Southwest the best opportunity for a positive future and the Board thanks the airline management and staff for their hard work in building the airline business since it started in 2003."
The Group continues to own and manage Plymouth City Airport where the airport's major customer, Air Southwest, operates scheduled services to a range of UK and Irish destinations.
Sutton Harbour expects to announce its Interim Results on 15 December 2010.
Enquiries:
Nigel Godefroy, Group Chief Executive Tel: 01752 204186
Sutton Harbour Holdings plc
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