Sutton Harbour slumps into loss

17th Dec 2010 14:02

Sutton Harbour fell into loss in the six months to September 2010 even without the loss on the disposal of its airline Air Southwest to Eastern International Airlines. Revenues fell from £7.14m to £4.07m but that was down to the timing of sales in the property operations. Part of the Plymouth Airport site was sold in the corresponding period last year. The marine and continuing transport operations both increased their revenues. Property's profit contribution was almost wiped out in the period and the contributions from the other operations were also lower. Sutton Harbour is considering its options for the airport. A profit of £2.53m was turned into a loss of £813,000. The airline operations lost an additional £8.6m, although the cash outflow was £3.75m. Net debt was £21.5m at the end of September 2010, up from £14.5m six months earlier. Capital spending was lower during the period. The debt was in the form of an overdraft but this has been transferred into a three year facility. Sutton Harbour intends to reduce debt by selling property projects. AIM-quoted Sutton Harbour's NAV is £33.2m and the shares are trading at a 30% discount to that NAV. Sutton Harbour is bidding for two new marina projects, including East Cowes. It is trying to reduce dependence on development profits, which can be lumpy. Management warns that the company's ability to complete current developments before the end of the financial year is likely to be hit by the present market conditions.