Airline disposal loss for Sutton Harbour

14th Jul 2010 13:01

Sutton Harbour says it expects to make "a significant loss" on the disposal of Air Southwest. The marine and property group announced in May that it was selling loss-making Air Southwest and it has talked to several purchasers. The talks appear to be taking longer than the company would have hoped. The losses from Air Southwest will be included in the 2010-11 accounts as discontinued operations so they will not affect the reported pre-tax profit. Trading remains difficult for the airline and the Icelandic volcanic ash disruption in April 2010 has deterred some potential passengers. The board believes it is in the best interests of Sutton Harbour to focus on its core operations. The third tranche of land at Plymouth Airport, which will remain part of the group, will be sold later this year and this will release a significant contribution to profit. It underpins the £3.5m profit forecast for 2010-11. Property projects are being progressed at a pace that balances the financial resources of the company and the risks of the project. Trading conditions are broadly unchanged. AIM-quoted activist investor Crystal Amber Fund owns 10.03% of Sutton Harbour.