Some figures from the annual report.
NATS made an operating profit of £134.4 million on turnover of £742.5 million. That's a fairly hefty profit for a monopoly to make so I can understand the regulator's desire to lower our charges.
Yet the company seems determined to increase profits. Last year's results were lower due to costs incurred during closure of West Drayton (£23 million) and paying off loans early (£80.8 million), these exceptional costs won't be on the balance sheet in future so profits will accelerate.
How much do NATS still owe? There's £138.7 million of borrowings due in the next 2 years but how much do we still owe?
NATS contribution rate to the pension fund is 12.2% which cost £54.8 million last year. How much would a 42% contribution rate actually cost? About £150 million?
Can NATS afford that? Not if they want to make a large profit year on year. If they didn't make a profit then they could have afforded the extra £95 million last year
42% contribution rate probably isn't sustainable but we're at the bottom of the economic cycle at the moment. Remember that image Barron was so keen on of the two boats with the pension fund dwarfing NATS?
Given the chance why can't the pension fund save itself? The sheer size of the fund would, given the chance, be it's strength as the economic situation picks up. Returns from a £2.8 billion fund would dwarf the employers contribution.
Does anyone know how many shares are in circulation? I note from the report, staff own about 6.8 million shares. Does that mean about 136 million shares have been issued? And at £2.70 per share is the market capitalisation around £367 million?
How much is the airline group's shares worth? If they own 6% each is that about £22 million? from an initial investment of £7 million?
Lots of these figures are best guesses, I'd appreciate any corrections (with references).