Infratil considers impact of Prestwick profits dip

This story is sourced from Pro
See more Pro news »

New Zealand-based utilities investment group Infratil will meet in the next few days to discuss “implications” of its move to take full ownership of Glasgow Prestwick International Airport, after revealing that the airport’s profits will be lower than expected.

Infratil expects Glasgow Prestwick Holdings’ earnings before interest, taxes and depreciation (EBITDA) to be around £4.5 million ($8.1 million) for the year ending 31 March 2004. This is around 10% below the comparable figure in 2003 and “materially below expectations”.

The company points to lower freight volumes – around 14% down on 2003 levels in January and February – while growth in passenger number over recent months has been below forecasts. It also notes that measures to expand its retail facilities – in order to keep track with increased passenger levels – will not be in place until the next financial year.

Infratril holds a 77.3% stake in the airport and late last year entered conditional purchase agreements to take full ownership of Prestwick.

In releasing details of the financial results, Infratil says that the data has implications for its proposal to acquire the outstanding shares in Prestwick from Utilico Investment Trust.

“The independent directors of Infratil are considering the value implications of the recent results on this proposal and will advise shareholders further later this week,” the company says.