Esken initiates sale process for Southend Airport and renewable energy business amidst financial concerns.
Esken, the troubled owner of Southend Airport, has officially announced the decision to put the airport up for sale, citing ongoing financial instability. Concurrently, the company has also initiated the sale of its renewables business. In a statement, Esken expressed a “material uncertainty” regarding its going concern assumption and emphasized the exercise of significant judgement by its directors in determining the group’s continued viability.
Following the news, Esken shares plummeted by 25% to 2.79p, marking a 67% decline over the past year. The company had previously arranged a £50 million borrowing facility to maintain its financial stability. However, in light of current circumstances, Esken has decided that a managed sale process for each of its core businesses would be the most favorable course of action for all stakeholders involved.
Despite recent achievements such as securing a multi-year agreement with easyJet to introduce a new route to Amsterdam, in addition to the existing destinations of Malaga, Majorca, and Faro, Esken remains committed to pursuing a sale. Southend Airport had been temporarily closed to commercial passengers during the COVID-19 travel restrictions but resumed operations in the previous summer.
Financial results for Esken’s renewables business showcased promising growth, with revenue climbing by 17.7% to £93.7 million for the year ending February. Additionally, airport revenues experienced an 8.7% increase, reaching £25.5 million. Although pre-tax losses narrowed slightly from £35.7 million to £27.7 million, the company recognizes the need to address its financial concerns proactively.
Esken originally acquired Southend Airport in 2008 for £21 million, when it was still known as Stobart Group. However, since 2020, the airport has experienced a series of setbacks as several airlines, including EasyJet, Ryanair, and Wizzair, ceased their operations at Southend. Presently, only EasyJet has resumed its services at the airport.
Esken remains committed to prioritizing the interests of its stakeholders and is confident that a managed sale process for both Southend Airport and its renewables business will provide the optimal outcome for all parties involved. The company will continue to provide updates as the sale process progresses.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
