Esken Ltd, formerly Stobart Group Ltd, published results for the year ending 28th February 2023. The pre-tax loss for the year is reported as £27.7m on revenue of £120m. Reported net assets at year-end were £39.9m (including intangibles of £54.7m) and net debt of just under £200m before accounting for lease assets and liabilities (net liability c£30m).
The company has completed a strategic review of its operating businesses and is actively progressing a managed sale process of its core Renewables (biomass fuel supply and management) and Aviation businesses with a view to returning any remaining value to Esken shareholders. The sale of Esken Renewables is at an advanced stage working with a preferred bidder on an exclusive basis. It has started the process for the sale of London Southend Airport (LSA), its key strategic airport asset within the Aviation business. Since the year-end, it has completed the sale of Star Handling Limited for up to £4.8m in May 2023.
The Aviation Division is now entirely focused on the recovery at LSA. That airport has started the year positively as demand for flights across the market has shown a strong recovery towards pre-pandemic levels. It has attracted operation by easyJet on a multi-year basis (starting with up to 18 departures per week this summer). Four of the eight ATR aircraft leased by Propius have been successfully returned to the lessor by the year-end, with the remaining four to be returned in the period to Sep 2023. The Group agreed on the early hand back of two of the four aircraft returned, resulting in maintenance savings of £2.0m. On 28th February, the Group had c£25.2m of obligations relating to leases, maintenance and other aircraft-related costs, that will be settled within one year. The remaining costs have been fully provided for in the financial statements.
Overall, the Directors are satisfied that the Group will have sufficient funds to continue to meet its liabilities as they fall due until at least 30th June 2024 and therefore have prepared the financial statements on a going concern basis. This is dependent on the successful completion of the Group’s disposal plans, which indicate the existence of a material uncertainty related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern and, therefore, to continue realising its assets and discharging its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
