Originally Posted by
asdf1234
Pretty awful results again and more assets sold to support the investment in the airport(s). Now that the Eddie Stobart shares have been mortgaged there is little left to support any further investment after the payment of dividends is catered for. Dividend payments are down 50%. Share price has been on the slide since the pre-close statement in March where the future dividend was cut again to 6p per annum (it was 18p in 2018, cut to 9p in 2019 all of which was funded by asset sales).
Share price movement today is the accumulation of trades coming through in the closed period - essentially bets. For a better picture look at the share price on Friday, one week after last Friday when shares closed at 107p, down from 225p one year ago.
How can the existing infrastructure support 5m pax let alone the target of 10m pax? Security and terminal is struggling with the new pax for the Ryanair flights. The airport will need remote stands on the North side and possible a remote terminal on the North side too. A parallel taxiway would also be required to support peak time aircraft movements. These can all be achieved at a price but what about car parking? The estate is not large enough to create additional parking unless a multi-storey facility can be included without impinging on the runway clearances and the radar coverage.
Exciting times ahead if Stobart can finish the infrastructure improvements before the cash runs out. Given the burn rate to date I can see the cash running out first.
Shares closed at 102p yesterday, he lowest price since May 2016, and 1 week after the results were announced I think this is a good reflection of how poor those results were. Let's hope the FBO and its "24 hour operations" can help drag those results up!
