Credit to this mornings UK Times for the majority of below.
Whatever way you look at it, Sir Richard is still a fabulously wealthy chap. Yes, as the owner of airlines, hotels, cruise ships, holiday companies and gyms, he’s in the eye of the Covid-19 storm. But he’s hardly skint. His latest stock market venture, the space travel group Virgin Galactic, is valued at $3.33 billion and he owns 51 per cent of it. His brand licensing business, Virgin Enterprises Ltd, pays him an annuity of around £90 million a year. His 13 per cent holding in Virgin Money is worth about £130 million. And he took more than $1 billion out of the Virgin America airline. Then there are his interests in private Virgin businesses, plus a property portfolio. He values Necker at $100 million-plus.
There’s money to be found, even if Virgin Australia collapsed yesterday, wiping out his 10 per cent equity stake. But there’s also another issue: is bailing out Virgin Atlantic a good use of taxpayers’ money? Sir Richard says he only wants a “commercial loan” and that he’s willing to invest $250 million across the Virgin Group, including a chunky sum in the airline. Yet look at its figures and it’s not the most inviting case for a mooted £500 million taxpayer loan.
The latest are for 2018, where the carrier had a pre-tax loss of £60 million on top of 2017’s near-£80 million losses. And the balance sheet hardly reassured: £1.55 billion of debt, gearing of 5.1 times and negative net assets of £20.1 million.
Yes, Virgin says the airline was heading for a return to profit this year. But it hasn’t made a profit since 2016. What hope post-virus? Will it be in any state to fulfil his promise that it would “pay back” a government loan? And why should the taxpayer step in for Delta, valued at $15 billion but finding it tricky to chip in because it’s taken US state support? The government is right to insist on a post-virus business plan and cash from the owners before entertaining any readies for Virgin Atlantic. And it doesn’t help that Sir Richard’s been here so recently with his shameless Flybe begging bowl act.
Another thing rankles, too: that despite his pledge to present “the actual facts”, there is arguably zero transparency over the Branson money trail that ends up in the parent company: Virgin Group Holdings, controlled by his family trusts in the tax-free British Virgin Islands. If he wants a bailout, he can lift the lid on that.
Anyone who wishes to avail themselves of information on RB and his virgin group should take time out to read Tom Bowers book. Branson. Behind the mask. Rather apt title now with this dreaded virus.
There are quite a few well researched articles appearing regarding SRB begging bowl, none, that I have found to be in support, with most condemning him personally. Many quoting, live by the sword die by the sword.
One cannot really look to support with tax payers money a secreted set of corporations sheltered in Tax havens without clear transparency. Many cite what about the employees, well isn't that the case for the millions being put out of work. The UK government should try and assist essential workers along with companies that are profitable but VA aren't essential and certainly not profitable.