Business
Sale of Air South West Limite
Sale of Air South West Limite.
About this update from Sutton Harbour Group Plc
[{"type":"text","content":"\n RNS Number : 9434S Sutton Harbour Holdings PLC 20 September 2010 \n \n\nFor Immediate Release 20 September 2010\n \n \nSutton Harbour Holdings plc (\"Sutton Harbour\" or the \"Group\")\nDisposal\n \nFurther to our announcements earlier in the year, Sutton Harbour Holdings plc announces that it has now reached agreement to sell its wholly owned airline subsidiary, Air South West Limited, to Eastern International Airlines Limited. Completion of the transaction is expected to take place in October 2010 and is dependent on regulatory and security transfer approvals.\n \nThis transaction will result in a pre tax cash outflow of c.£2m after transferring advance ticket sales and working capital balances to be determined by completion accounts. Air South West Limited had a net carrying value of £3.8m at the balance sheet date of 31 March 2010. With volcanic ash disruption and continued difficult trading conditions Air South West Limited has incurred pre tax losses of approximately £1.5m in this financial year to date. These amounts, together with the costs of the transaction, will be recognised as losses from discontinued activities in the current year financial statements.\n \nAir South West Limited sustained losses of £3.5m in the year ended 31 March 2010.\n \nAir South West Limited was set up by Sutton Harbour Group and started trading in October 2003. Air South West Limited continues to operates scheduled services out of Plymouth and Newquay to 10 UK, Irish and Channel Islands destinations. Sutton Harbour remains the owner and operator of Plymouth City Airport.\n \nCommenting on the disposal Michael Knight, Chairman of Sutton Harbour Holdings plc said:\n\"Air Southwest has made an important contribution to the Group since its inception and we look forward to seeing it continue to provide a valuable service to the region. This disposal ...