Sutton Harbour Holdings PLC PLYMOUTH AIRPORT NOT VIABLE WITHOUT PUBLIC SUBSIDY (1591S)

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RNS Number : 1591S

Sutton Harbour Holdings PLC

16 December 2016

16 December 2016

SUTTON HARBOUR HOLDINGS PLC

("Sutton Harbour Holdings" or "the Company")

PLYMOUTH AIRPORT NOT VIABLE WITHOUT SIGNIFICANT PUBLIC SUBSIDY

DfT report into the viability of the former Plymouth Airport published today

Sutton Harbour Holdings plc notes that the DfT report on the future of the former Plymouth Airport site ("Plymouth Airport study" or the "Report") published today concludes that the former airport site, in which Sutton Harbour Holdings has significant landed interests, is not commercially viable.

The full Report, which is available at https://www.gov.uk/government/publications/plymouth-airport-study concludes that a lack of demand and a short runway mean commercially viable passenger services could not be run out of the former Plymouth Airport site as it would remain "financially vulnerable" in a "high risk environment".

In addition, the Report underpins current Government policy to encourage commercial competition between airports, rather than subsidise them, stating; "In this context, future commercial decisions regarding PCA (the former Plymouth Airport) will be private matters for its owner, leaseholder, and other interested commercial parties".

Sutton Harbour Holdings, which closed the airport in 2011 in agreement with Plymouth City Council after suffering years of operational losses, has, following recent stakeholder consultation, prepared a vision for developing the site which will create much-needed jobs, housing and first class community sports facilities.

Jason Schofield, Chief Executive of Sutton Harbour Holdings plc, said:

"This is a thorough and independent Report that has weighed the evidence and concluded that commercially viable passenger services cannot be operated from this site. Even those who wish to re-open it concede that they need a GBP9 million Government subsidy.

"This Report completely undermines any rational argument for reopening an airport that is too small, and in the wrong place at a time when Government policy is focussed on facilitating market competition and where a good choice of existing airport facilities already exists in the South West region.

"We have long argued that the former airport site should be put to economic use to create jobs, homes and excellent community sports facilities for the people of Plymouth. This Report now clearly settles that debate once and for all and enables the City to finally move on."

The Company continues to work towards the Examination in Public timetabled for summer 2017 when a Government Inspector will recommend what the future use of the former airport site will be in the period to 2031.

Ends

Enquiries

 
 Sutton Harbour          +44 (0) 1752   Jason Schofield, Chief 
  Holdings plc            204186         Executive 
                                         Natasha Gadsdon, Finance 
                                         Director 
 Rothschild (Financial   +44 (0)20      John Byrne, Stephen 
  Adviser)                7280 5000      Griffiths 
 Arden Partners          +44 (0)20      James Felix, Ben Cryer 
  (NOMAD and Broker)      7614 5917 
 Yellow Jersey           +44 (0) 7747   Charles Goodwin 
  (Financial PR)          788221         Clare Glynn 
 

Notes to Editors

Sutton Harbour Holdings plc (SUH) is an AIM listed company specialising in marine operations, waterfront regeneration and destination creation in Plymouth and South West England.

The Company operates the Marina at Sutton Harbour, King Point Marina and Plymouth Fisheries. Operational activities include mixed use real estate lettings, car parking, support services to harbour users, property management as well as regeneration and asset enhancement.

Sutton Harbour Holdings plc is committed to being the leading marine and waterfront regeneration specialist in Southern England, and to positioning Sutton Harbour in Plymouth as a destination of national interest.

For further details click through to the full report which can be found at:

https://www.gov.uk/government/publications/plymouth-airport-study

This information is provided by RNS

The company news service from the London Stock Exchange

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December 16, 2016 12:30 ET (17:30 GMT)