REG - Esken Limited - Trading Statement

EskenAnnouncement

22/03/2022 07:00

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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 £18-20m. 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 £14.4m 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 £72.7m of liquidity available to it at the year-end (31 August
2021: £90.5m), which is ahead of management's expectations and includes the
£14.4m of ring-fenced cash in LSA (31 August 2021: £19.7m), and a £20.0m
Revolving Credit Facility. Esken has £48.6m 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 £38.8m of non-core assets held for sale.

 

Enquiries:

 

 Esken Limited

 Charlie Geller, Communications Director

 C/O Tulchan Communications

 

Tulchan Communications
 
+44 (0)20 7353 4200

Olivia Peters / David Allchurch
 
esken@tulchangroup.com

 

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