Infratil cuts Glasgow Prestwick full-year forecast

1.00pm

Infrastructure investment company Infratil today said the full year revenue forecast of its key Glasgow Prestwick International Airport investment had been reduced.

The reduced forecast for Glasgow Prestwick Holdings Ltd was a result of difficult trading conditions and the decision to make greater provision for one-off items, Infratil said in a statement to the stock exchange.

Infratil, which own 77.3 per cent of Glasgow Prestwick Holdings, now expects the company to post ebitda (earnings before interest, taxes and depreciation) of £4.5 million ($12.67 million) for the year ended March 31 -- about 10 per cent below the figure for the previous corresponding period.

Affecting the airport's performance were lower freight volumes, lower passenger numbers which in turn had resulted in lower income from retailing, and higher operating costs.

In addition, Glasgow Prestwick Holdings would also be forced to write off about £200,000, including sums related to bad debts incurred by two airport tenants that went into liquidation.

Infratil said the poor performance would affect its proposal to acquire the outstanding shares in Glasgow Prestwick Holdings from Utilico Investment Trust.

The acquisition is due for consideration by shareholders at a special meeting on March 24.

Infratil shares were 5c lower at $2.65 by 10.20am today. They have traded between $1.54 and $2.92 over the past 12 months.

- NZPA