Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Infratil takes $43.9M charge on British airports up for sale

Infratil takes $43.9M charge on British airports up for sale ahead of 1H result

By Paul McBeth

Nov. 9 (BusinessDesk) - Infratil, the infrastructure investment firm, has taken a $43.9 million charge to write down the value of the two British airports it's trying to sell ahead of its first-half results next week.

The Wellington-based firm wrote down the carrying value of the Glasgow Prestwick and Kent airports by 22.2 million pounds, which will be reflected in the first-half net profit, the company said in a statement. The investment firm is trying to sell the unprofitable airports, and has already written down their value by $60.4 million in the past two financial years.

"The impairment charge reflects market feedback received as part of this (sale) process," the company said. "Infratil continues to actively seek a buyer for the airports, while considering all other options available with respect to the ongoing operations."

Infratil is reportedly part of a consortium including its manager Morrison & Co and the New Zealand Superannuation Fund making a bid for Stansted airport, Britain's third-largest gateway.

The investment firm has flagged earnings before interest, tax, depreciation, amortisation and changes in fair value (ebitdaf) will be between $530 million and $560 million in the 2013 financial year, up from $520.2 million a year earlier.

Infratil shares were unchanged at $2.19 yesterday, and have gained 16 percent this year. The stock is rated an average 'outperform' based on six analyst recommendations compiled by Reuters, with a median target price of $2.30.

Separately, Wellington International Airport, which is controlled by Infratil, reported a narrower first-half loss of $5.6 million in the six months ended Sept. 30, from $6.7 million a year earlier. The airport lifted revenue 8.1 percent to $51.4 million, with a 13 percent hike in landing and terminal charges, more than doubling ebitdaf to $9.5 million.

Last week, the airport was found to be targeting excessive returns in a draft Commerce Commission report which were beyond what the regulator considered reasonable.

"Wellington Airport is reviewing the findings set out in the draft report as it does not appear to recognise the overall forecast returns which are in line with the commission's guidelines," the airport said.

The airport made a subvention payment to Infratil subsidiaries of almost $30 million in the period, down from $30.1 million a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news