Originally Posted by
SWBKCB
So paying back debt "doesn't count"? And does the deal include clearing all outstanding debts - not seen anything mentioned.
There is the £40m to buy the airport, but I've not seen any mention of the costs to turn the airport into an ongoing viable business. Aren't we just back in the same place as when the LA's sold the airport in the first place?
The headline figure in an M&A deal is normally on a cash and debt free basis, so the Mayor pays £40m less the debt in the business (which presumably will be settled on completion). At the end of last year there was £12.7m owed to "parent and fellow subsidiary undertakings" (ie Peel companies) accruing debt of LIBOR +2.25% (so about £375k). With this debt settled, the loss will be reduced by the same amount. Is this what you were both referring to
Onion and
Get me some traffic?
But this just reduces the £2.6m annual loss to £2.2m although the 2017 accounts show some big movements against the prior year (the £1.6m stock impairment looks a bit like a one off to me). It would be interesting to know what the true underlying profitability of the company actually is but I doubt it is losing more than £1m a year.