Investment: Alpha is only for the brave
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.REDEEMING hostages to fortune is never cheap and rarely inspires confidence. Yesterday Alpha Airports, the airport catering and support group where Harrods is the leading shareholder with a 27.8 per cent stake, paid the penalty after chief executive Kevin Abbott said he had not received a single decent offer for the chain of airport shops he put up for sale in February.
Mr Abbott blamed the deepening impact of the Asian economic crisis on the fortunes of potential buyers. Nevertheless, the planned disposal has now been formally withdrawn, leaving the company in the middle of a credibility crisis.
Mr Abbott originally put the division up for sale in order to raise cash. He argued that Alpha lacked the resources to develop airport retailing as well as its flight catering and ground services divisions. The sale of the one would help finance the expansion of the others.
Alpha now plans to finance the development of all three divisions with the help of a new pounds 100m long-term facility from its major bankers. But after such a dramatic U-turn, shareholders must be asking whether existing management is up to the job. Retailing was the largest single division last year, accounting for 52 per cent of turnover and generating 44 per cent of profits.
The outlook is further clouded by the impending loss of duty-free sales on flights between EU member states. The shares, which shed 8p to 70p yesterday, now trade on barely six times this year's prospective earnings rising to seven in 1999. But given the current uncertainties, the shares are only for the brave.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments