30 September 2021
("Esken" or "the Group")
Esken, the aviation and energy infrastructure group, issues the following update on trading ahead of the publication of its interim results for the six months to 31 August 2021, which will be announced on 3 November 2021.
The Energy Division is trading in line with management's expectations, returning to pre-COVID-19 levels of profitability and cash generation, with all the plants that it supplies fully operational. It is benefitting from improved gate fees and increased wood supply from the construction sector.
The Aviation Division, in line with the industry as a whole, and as anticipated, continues to feel the effects of the pandemic's impact on travel. Therefore, the decision taken alongside our airline partners to delay the restart of commercial passenger operations to Spring 2022 will further allow LSA to minimise operating expenditure and maintain tight cost control. LSA continues to retain £19.7m of ring fenced cash following the completion of Esken's refinancing and management remain confident in their continuing discussions with airlines ahead of the beginning of the Summer schedule for 2022. The Global Logistics Operation generated a contribution in the period under review which partially offset the impact of reduced passenger operations.
Balance sheet and liquidity
Following the successful completion of the capital raise and refinancing, the Group had £90.5m of liquidity available to it at the half year, which is ahead of management expectations and includes £19.7m of ring-fenced cash in LSA, and a £20m undrawn Revolving Credit Facility.
Charlie Geller, Communications Director
C/O Tulchan Communications
Olivia Peters/David Allchurch
020 7353 4200