Well let's do a bit of (simplistic) maths shall we:
The airport made £24m operating profit on 10m passengers
Traffic will grow from 10m to 18m passengers - so pro rata we can expect an additional £19m operating profit
Take off extra Corporation tax - say £4m
Take off interest on £100m - say another £5m
This leaves £10m annual profit on an investment of £100m - or 10%
Is it worth the risk for 10% return? - given the looming lack of capacity in London - probably yes.
£300m investment would, however, likely require either a lot more tham 18m passengers or much higher prices to airlines in order to produce an acceptable return.
This ignores depreciation of course but also any increased profit margin from economies of scale (and many other factors) - but I did say it was simplistic.
Last edited by Itchin McCrevis; 24th Jun 2015 at 21:23.