Esken Limited Trading Statement (5220F)
22 March 2022 - 6:00PM
UK Regulatory
TIDMESKN
RNS Number : 5220F
Esken Limited
22 March 2022
22 March 2022
Esken Limited
("Esken" or "the Group")
Trading update and notice of results
Esken, the aviation and renewable energy infrastructure group,
issues the following update on trading ahead of the publication of
its full year results for the twelve months to 28 February 2022,
which will be announced towards the end of May 2022.
Energy
Stobart Energy continues to play a critical role in the UK's
energy value chain and supporting the transition to a low-carbon
economy by sourcing waste wood to supply to biomass plants which
generate c.2% of the country's energy.
The business ended the financial year trading at the upper end
of management's guidance range for EBITDA of GBP18-20m. This
performance was driven by improved gate fees, increased supply of
waste wood and a robust operating performance from its biomass
plant customers.
Whilst there is no direct relationship between energy price
increases and Stobart Energy's long term RPI-linked biomass fuel
supply contracts, stronger and more profitable customers are a
positive for Stobart Energy. Higher energy prices are also a key
driver for plants to maximise output to the fullest extent, thereby
requiring greater fuel supply.
Aviation
It is encouraging that the majority of European travel
restrictions have been lifted and airlines have been seeing an
improvement in booking volumes for Summer 2022, although the impact
of higher fuel prices on both customer demand and airline flying
capacity is currently unclear.
London Southend Airport is well positioned for the recovery and
longer-term growth in air travel and, as volumes recover and more
established London airports begin to face capacity constraints once
again, London Southend Airport's London catchment area and strong
transport links support positive growth prospects. Wizz Air
recently decided not to restart its flights from one destination to
London Southend Airport for Summer 2022. However, the airport will
benefit from the return of easyJet flights, with tickets already on
sale for flights to Malaga and Palma, and flights to Faro were put
on sale on 17 March 2022. The Company also continues to have active
dialogue with a wide range of airlines with a focus on delivering
the right airline agreements for Esken for Summer 2023 onwards.
While flying was constrained during the traditionally quieter
winter period, the airport continued to benefit from global
logistics income. Esken has maintained strict financial discipline,
underpinned by GBP14.4m of ring-fenced cash, which will be used to
support the airport as it works toward a positive cash
contribution.
Balance sheet and liquidity
Esken had GBP72.7m of liquidity available to it at the year-end
(31 August 2021: GBP90.5m), which is ahead of management's
expectations and includes the GBP14.4m of ring-fenced cash in LSA
(31 August 2021: GBP19.7m), and a GBP20.0m Revolving Credit
Facility. Esken has GBP48.6m of outstanding liabilities payable
through to FY24 associated with the liquidation of Stobart Air and
ongoing Propius leases and their related costs as of 28 February,
2022. As of 28 February 2022, Esken retained GBP38.8m of non-core
assets held for sale.
Enquiries:
Esken Limited
Charlie Geller, Communications Director
C/O Tulchan Communications
Tulchan Communications +44 (0)20 7 353 4200
Olivia Peters / David Allchurch esken@tulchangroup.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTJBMMTMTBTTLT
(END) Dow Jones Newswires
March 22, 2022 03:00 ET (07:00 GMT)
Stobart Group Ld (LSE:STOB)
Historical Stock Chart
From Aug 2024 to Sep 2024
Stobart Group Ld (LSE:STOB)
Historical Stock Chart
From Sep 2023 to Sep 2024