Originally Posted by
Expressflight
asdf1234
If you read the Stobart Group statement issued yesterday you will see that it says:
"The proceeds will support the Group's progressive dividend policy and increase the scope for adding value through selective investment."
Therefore the first paragraph of your post was a little misleading in suggesting that all the proceeds will be used to cover future dividend payments. I think it's best to await the annual results announcement in three weeks time rather than making pessimistic assumptions now.
Will support the Group's...dividend policy...
Increase the
scope for adding value through selective investment...
One is definite, the other is a vague non binding statement of future intent.
Paying the dividend out of asset sales has been, and continues to be, the Group's focus. I don't expect the forthcoming annual report to differ from that stated policy.
The gamble is as stated. Sell the Group's current assets to support the future dividend policy to give time to the airport to start delivering profits so that it too can be sold with the proceeds going to shareholders.
My position is that they will not achieve profitable operations mainly because EasyJet scares off the competition. Something I have always maintained from the day they first invited EasyJet in. The fact that the only viable competition the airport can attract is their very own airline does support my assertion.