Originally Posted by
tigertanaka
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.
That is partly it. Without looking over the accounts again I can't be accurate, but in my professional opinion they do look odd as a whole.
It is my belief that Peel have been writing down the true value of the land while saddling the airport with loans!
If I remember rightly it states that any loan going from the airport back to Peel is interest free!