Manston Airport - Capital Valuations
Those of us who have had an involvement with Manston for some time will recall that this is not the first time we have been given suspiciously optimistic valuations for the site as a capital asset.
Back in the early Planestation days, a number of respected city analysts, in addition to predicting great business revenue at MSE were placing a Market Capital Value on the asset in excess of 300 million sterling! Most people were optimistic and gullible enough to believe the whole story (myself included), and we bought shares in our droves.
Of course, we all know what happened. Manston failed to attract enough business, and even with the facility of scheduled night flights the whole thing went bust and the airport sold for a paltry £17M.
Of course, the shareholders were furious, and all kinds of recriminations and threats of legal action were levelled at the analysts who had made these predictions. It turned out, in the end, that they knew little of the real situation in Kent, and one of them was, in fact, being paid by Planestation.
I mean no disrespect to Mr Foster of ABN Amro, but I suspect he also knows little of the situation in Kent, as it would appear he is in New Zealand. It is dangerous to assume that because Belfast City sold for more than expected, that KIA is worth 74 million quid. Manston has a disastrous track record, and little hope for the future, and it is hard to imagine anybody wanting to buy it as a realistic business proposition.
Looking closely at the quoted interview with Lloyd Morrison, it is interesting to note he no longer makes reference to traffic or revenue at Manston, but only what it might be worth in capital terms.
This would tend to confirm the suggestion that they are limbering up to sell the place, and would also account for the urgent need to find commentators who are willing to place a high value on the property.