Just wanted to comment on the 12.1m euro Net Profit on Disposal of 5 aircraft... Whilst it's difficult as I don't know what method and % depn RYR apply to their fixed assets, to make 2.42m euro profit on disposal per aircraft I would think they write off the bulk costs of their assets pretty quickly. With that in mind I wouldn't be worried about them. They do have to keep the NBV of their assets in check as overstating their balance sheet at year end can get them (and their accountants) into alot of trouble! The time to become concerned is when they start making massive losses on disposal which would point to them trying to artificailly sustain their share price for as long as possible by Overstating their assets and reducing the depn that gets put through the books so as to increase profit.
I know their are loads of other aspects to consider and we won't know the actual state of their accounts in detail until they are published in full in 2 years time. But...for the time being my point is DON'T worry about RYR, they ain't going anywhere and their finances indicate that. The disposal of assets doesn't neccisarily mean that they're in trouble and trust me, they will have enough retained profit to call up for some years to come before they run out of money!
Hope this serves to restore some confidence but only time will tell whats really going on. For me it's too late, the loan agreement is signed, levaing job in 5 weeks, security currently being organised and course booked with deposits paid. So....I'm hoping that things perk up but I'm not sticking my head in the sand over this, simply looking at what is going on now. My honest opinion is that threat on a recession coupled with RYR disposing of aircraft has frightened investors and shares have dropped as a result. If it is anything else more sinister then wish me luck for the ******* bumpy road ahead.
Cheers
CS
Accountant about to turn Student Pilot