Glasgow Prestwick For Sale?
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Glasgow Prestwick For Sale?
I have heard rumours that Glasgow Prestwick is for sale or has been bought over. Announcement is going to be made this week.
Anyone else know about this?
G-AMMY
Anyone else know about this?
G-AMMY
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Some crossed wires here.
Infratil who own 67% are holding a shareholders meeting on 24th March to agree to taking 100% ownership by buying the shares held by Omniport the new operators of Norwich.
Prestwick is on the up. Have a look at the Infratil website to see what they think of its prospects.
They are confident of increasing passenger numbers from the present 2 million per year to 4 million and consider prospects of new services to Carcassonne, Murcia, Malmo, Eindhoven, Venice, Hamburg, Munich and Berlin to be very good.
I also noticed that Infratil entered into a 10 year agreement in September 2003 with the operators of Finow airport 55km north East of Berlin. They hope to commence commercial operations by 2006 in time for the World Cup which is being held in Germany.
Infratil who own 67% are holding a shareholders meeting on 24th March to agree to taking 100% ownership by buying the shares held by Omniport the new operators of Norwich.
Prestwick is on the up. Have a look at the Infratil website to see what they think of its prospects.
They are confident of increasing passenger numbers from the present 2 million per year to 4 million and consider prospects of new services to Carcassonne, Murcia, Malmo, Eindhoven, Venice, Hamburg, Munich and Berlin to be very good.
I also noticed that Infratil entered into a 10 year agreement in September 2003 with the operators of Finow airport 55km north East of Berlin. They hope to commence commercial operations by 2006 in time for the World Cup which is being held in Germany.
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Actually, Ryanair are on the "up" at PIK, every other scheduled carrier has encountered difficulties and have either pulled out or reduced their capacity. PIK are still playing a dangerous game because they are basically a one airline airport!
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Please lets not turn this into a GLA is better than PIK which is better than EDI thread because its childish. Yes PIK is almost a one passenger airline airport but Ryanair have now established
market whereby if they pulled out one of the numerous other LOCO's would quickly move in.
The way Glasgow is going they will push out airlines anyway because they cannot see past a few longhaul schedules which are given extra special treatment.
Everyone on the airport is dreading the summer because they know there just isnt enough space for the proposed flights and the so called tin shed T2 is not going to sort things out.
market whereby if they pulled out one of the numerous other LOCO's would quickly move in.
The way Glasgow is going they will push out airlines anyway because they cannot see past a few longhaul schedules which are given extra special treatment.
Everyone on the airport is dreading the summer because they know there just isnt enough space for the proposed flights and the so called tin shed T2 is not going to sort things out.
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OK WHBM, if we are hair splitting, a one pax airline airport! If RYR went, then the 747s would face either changing destination or landing on a site owned by Barratt!
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R31 - Infratil have already bought Omniport's share in PIK. The forthcoming issue to which you allude is the purchase of the shares held by Utilico - detail of this is indeed on the Infratil web site (www.infratil.com).
What is the source of the Finow news?
What is the source of the Finow news?
OK WHBM, if we are hair splitting
"Only 30% of Glasgow Prestwick International Airport's current income comes from passenger related activity (i.e. landing fees and retail income linked to passenger flights). The balance is derived from freight related activities (34%), military, general aviation, training and other aviation services (16%) and property related income (20%)."
http://www.infratil.com/glasgow_pres...rport_faqs.htm
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My apologies, as GroupCaptain states the meeting is in regards to the Utilico shares.
The information regarding Finow comes from the Infratil website under announcements dated 19 February and titled airport updated as did the other information that I posted.
The following link takes you there:
http://www.infratil.co.nz/downloads/...te_feb2004.pdf
The information regarding Finow comes from the Infratil website under announcements dated 19 February and titled airport updated as did the other information that I posted.
The following link takes you there:
http://www.infratil.co.nz/downloads/...te_feb2004.pdf
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Looks like there is some horse trading going on before the meeting detailed above with the release of the following from Infratil.
Looks like they are trying to get the price down.
In a report on their website thay state that an average 46% rise in monthly passenger figures is below expectations !!!!! and even although profits are up they are not up by as much as hoped.
The provision for one off items are for two companies that went out of business. Omega Air strikes again although the total they are talking about is £200k
Glasgow Prestwick Earnings Disappoint Infratil
.
March 15, 2004
New Zealand utilities investor Infratil said on Monday it may reconsider full ownership of Glasgow Prestwick International Airport following a disappointing financial performance of its 77-percent owned subsidiary. The airport company's earnings before interest, taxes and depreciation for the year ended March would be "materially below expectations", Infratil said. Worse-than-expected trading conditions, and the decision to make greater provision for one-off items, would result in a 10 percent fall in earnings to GBP£4.5 million (USD$8.1 million). Infratil spokesman Tim Brown said directors were reconsidering the GBP£11.7 million (USD$21.1 million) valuation on the remaining 23 percent of the airport company. They would inform shareholders of their view ahead of a meeting on March 24 to vote on the purchase from Utilico Investment Trust. "It's fair to say there is an element of surprise in this outcome because we're fairly focused on continuous disclosure," Brown said. Owning 100 percent of Glasgow Prestwick remained attractive at the right price, although not pursuing the purchase was also an option, he said. The reduction in the airport's earnings would have a "negligible" impact on Infratil's balance sheet. In December Infratil increased its stake by 10 percent to 77 percent at a cost of GBP£6 million (USD$10.8 million). Glasgow Prestwick makes up about 20 percent of Infratil's investment portfolio, which includes stakes in electricity company Trustpower, and Wellington International Airport.
(Reuters)
++
Looks like they are trying to get the price down.
In a report on their website thay state that an average 46% rise in monthly passenger figures is below expectations !!!!! and even although profits are up they are not up by as much as hoped.
The provision for one off items are for two companies that went out of business. Omega Air strikes again although the total they are talking about is £200k
Glasgow Prestwick Earnings Disappoint Infratil
.
March 15, 2004
New Zealand utilities investor Infratil said on Monday it may reconsider full ownership of Glasgow Prestwick International Airport following a disappointing financial performance of its 77-percent owned subsidiary. The airport company's earnings before interest, taxes and depreciation for the year ended March would be "materially below expectations", Infratil said. Worse-than-expected trading conditions, and the decision to make greater provision for one-off items, would result in a 10 percent fall in earnings to GBP£4.5 million (USD$8.1 million). Infratil spokesman Tim Brown said directors were reconsidering the GBP£11.7 million (USD$21.1 million) valuation on the remaining 23 percent of the airport company. They would inform shareholders of their view ahead of a meeting on March 24 to vote on the purchase from Utilico Investment Trust. "It's fair to say there is an element of surprise in this outcome because we're fairly focused on continuous disclosure," Brown said. Owning 100 percent of Glasgow Prestwick remained attractive at the right price, although not pursuing the purchase was also an option, he said. The reduction in the airport's earnings would have a "negligible" impact on Infratil's balance sheet. In December Infratil increased its stake by 10 percent to 77 percent at a cost of GBP£6 million (USD$10.8 million). Glasgow Prestwick makes up about 20 percent of Infratil's investment portfolio, which includes stakes in electricity company Trustpower, and Wellington International Airport.
(Reuters)
++
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>>New Zealand utilities investor Infratil said on Monday it may reconsider full ownership of Glasgow Prestwick International Airport following a disappointing financial performance of its 77-percent owned subsidiary.<<
Ryanair might survive but will their chosen airports.?
Ryanair might survive but will their chosen airports.?
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Joe Curry wrote:
New Zealand utilities investor Infratil said on Monday it may reconsider full ownership of Glasgow Prestwick International Airport following a disappointing financial performance of its 77-percent owned subsidiary.<<
Ryanair might survive but will their chosen airports.?
It's not a matter of survival it's whether they will pay the asking price for the 23% of the airport they don't already own.
Looking at Infratil's website you can see that before tax and after depreciation, interest, etc., Prestwick had a profit of £2,078,068 for the first 9 months of the year which isn't bad considering they were operating at a loss 3 years ago.
Games are being played here by an investment company which is trying to pay as little as it can.
New Zealand utilities investor Infratil said on Monday it may reconsider full ownership of Glasgow Prestwick International Airport following a disappointing financial performance of its 77-percent owned subsidiary.<<
Ryanair might survive but will their chosen airports.?
It's not a matter of survival it's whether they will pay the asking price for the 23% of the airport they don't already own.
Looking at Infratil's website you can see that before tax and after depreciation, interest, etc., Prestwick had a profit of £2,078,068 for the first 9 months of the year which isn't bad considering they were operating at a loss 3 years ago.
Games are being played here by an investment company which is trying to pay as little as it can.
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You are probably right Runway 31. Not an unusual tactic and when you see the genuine prospects below, only the feeble minded jump to the conclusion that PIK has a problem...... talking of which Joe Curry does his usual and opens his mouth without connecting it to his brain.
Here is a rather good summary from the New Zealand Herald -
A surprise earnings downgrade at Infratil's Glasgow Prestwick Airport has been issued just a week after shareholders were advised to approve a plan to take over 100 per cent ownership.
Infratil shares fell 10c to $2.60 on the news.
In an embarrassing turnaround from previous forecasts, Infratil yesterday told the stock exchange that earnings from the airport may drop by 10 per cent this year to £4.5 million ($12.5 million).
Shareholders were due to vote next week on a plan to increase their ownership of Prestwick to 100 per cent, buying the remaining 23 per cent of the company it does not already own.
Reasons given for the drop in earnings include lower freight volumes, lower passenger growth, therefore less money coming from shops and car parking, and higher operating costs and one-off charges.
Around £200,000 ($560,000) is being set aside for bad debts after two of the airport's tenants, one a travel agency, went into liquidation.
The problem is that despite an overall jump in the number of passengers using the airport - up 46 per cent for the three months ended February - the amount earned from each person is dropping.
Significant traffic growth contributed to a decline in per passenger concession income of 10 per cent for the three months ended February, when compared with the same period last year, the company said.
An Ernst & Young appraisal report issued on March 8 gave little hint of the problems at Prestwick.
It says the airport earned a far greater contribution per passenger from its retail and trading activity than from charges paid by the airlines.
"Management are of the view that the airport is now achieving a critical mass, which is likely to be sufficient to attract specialised and boutique retailers to GPIA [Glasgow Prestwick International Airport] so as to broaden the current offering and lead to real growth in concession yield."
Much of the problem with Prestwick comes from its biggest customer, the no-frills airline Ryanair.
Growing at an explosive rate, Ryanair has scheduled many of its new flights through Prestwick at the same time of day.
This has led to airport congestion and travellers not spending as much money in its shops.
Infratil says measures to expand retail facilities are under way, but these will not be done before the end of the month.
Shareholders have been asked to approve the deal because the shares are being bought from Utilico Investment Trust, which owns 7.48 per cent of Infratil.
This makes the purchase a "related party transaction".
The chairman of Infratil, Kevin O'Connor, said yesterday's announcement clearly had "value implications" and he, with the other independent directors David Newman, David Caygill and John Peterson, would make an announcement to shareholders this week.
Infratil and Prestwick
January 2001: Infratil pays £14.8 million (then $48 million) for a 67 per cent stake in Glasgow Prestwick International Airport.
December 15, 2003: Infratil buys a further 2.2 million shares for £6.025 million (then $22 million), taking its stake to 77.3 per cent. Chairman Kevin O'Connor said the UK regional airport sector was key for Infratil.
December 19, 2003: Infratil conditionally agrees to buy Utilico's five million Prestwick Airport shares for £11.7 million (then $43.2 million), moving it to 100 per cent ownership.
March 8, 2004: Infratil announces a special shareholders meeting on March 24 to vote on the purchase of Utilico's Prestwick shares. Infratil's independent directors recommend shareholders approve the purchase.
March 15, 2004: Infratil says Prestwick's earnings for the current year (ending March 31) will be 10 per cent lower than the year before. Independent directors now "considering the value implications of the recent results on this proposal and will advise shareholders further later this week".
Here is a rather good summary from the New Zealand Herald -
A surprise earnings downgrade at Infratil's Glasgow Prestwick Airport has been issued just a week after shareholders were advised to approve a plan to take over 100 per cent ownership.
Infratil shares fell 10c to $2.60 on the news.
In an embarrassing turnaround from previous forecasts, Infratil yesterday told the stock exchange that earnings from the airport may drop by 10 per cent this year to £4.5 million ($12.5 million).
Shareholders were due to vote next week on a plan to increase their ownership of Prestwick to 100 per cent, buying the remaining 23 per cent of the company it does not already own.
Reasons given for the drop in earnings include lower freight volumes, lower passenger growth, therefore less money coming from shops and car parking, and higher operating costs and one-off charges.
Around £200,000 ($560,000) is being set aside for bad debts after two of the airport's tenants, one a travel agency, went into liquidation.
The problem is that despite an overall jump in the number of passengers using the airport - up 46 per cent for the three months ended February - the amount earned from each person is dropping.
Significant traffic growth contributed to a decline in per passenger concession income of 10 per cent for the three months ended February, when compared with the same period last year, the company said.
An Ernst & Young appraisal report issued on March 8 gave little hint of the problems at Prestwick.
It says the airport earned a far greater contribution per passenger from its retail and trading activity than from charges paid by the airlines.
"Management are of the view that the airport is now achieving a critical mass, which is likely to be sufficient to attract specialised and boutique retailers to GPIA [Glasgow Prestwick International Airport] so as to broaden the current offering and lead to real growth in concession yield."
Much of the problem with Prestwick comes from its biggest customer, the no-frills airline Ryanair.
Growing at an explosive rate, Ryanair has scheduled many of its new flights through Prestwick at the same time of day.
This has led to airport congestion and travellers not spending as much money in its shops.
Infratil says measures to expand retail facilities are under way, but these will not be done before the end of the month.
Shareholders have been asked to approve the deal because the shares are being bought from Utilico Investment Trust, which owns 7.48 per cent of Infratil.
This makes the purchase a "related party transaction".
The chairman of Infratil, Kevin O'Connor, said yesterday's announcement clearly had "value implications" and he, with the other independent directors David Newman, David Caygill and John Peterson, would make an announcement to shareholders this week.
Infratil and Prestwick
January 2001: Infratil pays £14.8 million (then $48 million) for a 67 per cent stake in Glasgow Prestwick International Airport.
December 15, 2003: Infratil buys a further 2.2 million shares for £6.025 million (then $22 million), taking its stake to 77.3 per cent. Chairman Kevin O'Connor said the UK regional airport sector was key for Infratil.
December 19, 2003: Infratil conditionally agrees to buy Utilico's five million Prestwick Airport shares for £11.7 million (then $43.2 million), moving it to 100 per cent ownership.
March 8, 2004: Infratil announces a special shareholders meeting on March 24 to vote on the purchase of Utilico's Prestwick shares. Infratil's independent directors recommend shareholders approve the purchase.
March 15, 2004: Infratil says Prestwick's earnings for the current year (ending March 31) will be 10 per cent lower than the year before. Independent directors now "considering the value implications of the recent results on this proposal and will advise shareholders further later this week".
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Looks like I was right when I thought that Infratil were out to buy the remaining shares at PIK for a cheaper price. The following article is taken from today's Scotsman and looks like a good piece of business to me.
A DEAL to sell 23 per cent of Prestwick Airport finally looks like being completed - but at £1.4 million less than originally expected. Officials confirmed yesterday that Infratil, the New Zealand investment company which owns 77 per cent of the airport, had negotiated a lower price to buy the remaining stake.
Earlier in the week, Infratil announced it expected results below expectation for Glasgow Prestwick Holdings for the March year.
Tom Wilson, the airport’s managing director, said that Infratil had subsequently reviewed implications of the profit downgrade for it proposed purchase of the five million airport shares from the London-based firm Utilico Investment Trust.
After receiving independent valuation advice, Utilico has now agreed to a revised purchase price of £2.06 per share, cutting the previously agreed price to £10.3m from £11.7m.
Shareholders will vote on the new package on 24 March and directors are believed to support the purchase. Ernst & Young, who prepared an appraisal report on the acquisition, have also confirmed to the independent directors that the transaction price is fair to non-associated investors.
The airport is expected to post pre-tax earnings of £4.5m for the year ended 31 March, about 10 per cent lower than last year.
A DEAL to sell 23 per cent of Prestwick Airport finally looks like being completed - but at £1.4 million less than originally expected. Officials confirmed yesterday that Infratil, the New Zealand investment company which owns 77 per cent of the airport, had negotiated a lower price to buy the remaining stake.
Earlier in the week, Infratil announced it expected results below expectation for Glasgow Prestwick Holdings for the March year.
Tom Wilson, the airport’s managing director, said that Infratil had subsequently reviewed implications of the profit downgrade for it proposed purchase of the five million airport shares from the London-based firm Utilico Investment Trust.
After receiving independent valuation advice, Utilico has now agreed to a revised purchase price of £2.06 per share, cutting the previously agreed price to £10.3m from £11.7m.
Shareholders will vote on the new package on 24 March and directors are believed to support the purchase. Ernst & Young, who prepared an appraisal report on the acquisition, have also confirmed to the independent directors that the transaction price is fair to non-associated investors.
The airport is expected to post pre-tax earnings of £4.5m for the year ended 31 March, about 10 per cent lower than last year.
