Alpha Airports Share Discussion Threads

[scotch broth] 06/7/2006 08:14

Is it down cos the market is or is it tarnished to sell forever on a lower valuation?
There is still the possibility of being sued as mentioned in the statement.
Probably unwise to buy any more yet.

[eithin] 06/7/2006 07:34

Back in business... Divi Ok ex 8/9 paid 6/10. (3.2p)

[jeffian] 22/6/2006 09:50

Thanks, Stewart. The difference with GHT is that there we are just waiting for evidence that promising contracts are being turned into actual revenue. Here, we have a real problem which is beginning to look more tangled than we were originally led to believe. "Williams will want to make sure they resolve the problem quickly. Having the shares suspended is a massive blow to Alpha's credibility and, though the resignations have gone some way to address that problem, Williams will be expected to make it all better for the shareholders." Quite! Initially, the line was that, whilst it was embarrassing that a contract had been structured in such a way to help massage a customer's figures, there was nothing untoward financially, all cash due had been received and the actual figures would not be affected. So why so long to confirm that £1 is £1? The longer it goes on, the more it looks like there is something to be 'uncovered'.

8-(

Regards, Ian

[stewartf] 22/6/2006 09:34

A few threads (GHT for example) that I keep my eye on have gone quiet of late. I guess the guess the review is ongoing. The last news I found was this from a month ago.





Alpha's crash landing
Prospects: Alpha's new chief executive launches a recovery plan

Gavin Hinks, Accountancy Age 25 May 2006

What's happened

Is it a poison chalice? Difficult to say as yet, but the job of chief executive at Alpha Airports, the airline catering business embroiled in accounting difficulties, looks like a difficult one from any angle.

But the company has appointed a man who is used to pressure in the boardroom. Peter Williams, whose appointment was revealed last week, is the former CEO and finance director of everybody's favourite up-market department store, Selfridges.

He joins after Alpha's chief executive and its FD were forced to resign following the refusal of the company's auditor to sign off the accounts. The shares were suspended from trading and Alpha began attracting some very unwelcome headlines.

What's next

Williams has a big job to do now. The trouble stems from a £7.5m contract that reports suggest was not properly represented in the accounts. The task facing the man, who was once one of the most high profile businessmen and FDs in the country, is to make sure the accounts show a true and fair view. This will mean satisfying the board of Alpha, and the auditors at PricewaterhouseCoopers, that all the revenues and contracts have been properly written down and disclosed.

So first thing is to get a review underway of the contract in question and co-ordinate with the new finance director, Tim Redburn who will be in post for three months while a permanent replacement is found.

Redburn will be crucial over this period and Williams will want to make sure they resolve the problem quickly. Having the shares suspended is a massive blow to Alpha's credibility and, though the resignations have gone some way to address that problem, Williams will be expected to make it all better for the shareholders. And he might just be the man to do it. When Selfridges demerged from its parent company Sears in 1996, Williams was put in charge of restating accounts going back five years.

If he can clean up Alpha's books, Williams will next be tasked with building shareholder value and raising revenues. This will be quite different from running Selfridges, which had one main base, while Alpha operates out more than 70 airports in 13 countries. He will be on a steep learning curve and, if you'll excuse the pun, will want to get a flying start.

RETAIL THERAPY

Williams joined Selfridges in 1991 as finance director and was there until February 2004when he quit his job as chief executive. Williams was viewed as having played a key role in the store's revival. He brought all IT and finance functions in-house. He argued against the adoption of the euro and headed a project to restate accounts going back five years.

Speaking to Accountancy Age at the time, Williams said: 'It was a very difficult time for everyone in the company and not least the finance team.

[jeffian] 22/6/2006 08:43

This silence a bit ominous?

[stewartf] 20/5/2006 07:52

FinancialDirector.co.uk adds



The company is searching for a permanent FD as Redburn will only hold the position for three months.

[stewartf] 20/5/2006 07:48

This from UK-Airport-News



Top managers at Alpha Airports quit as probe is widened
17.05.06

A widening accounting investigation at Alpha Airports cost the company's chief executive and finance director their jobs yesterday. The probe also spread to Gatwick-based charter airline Excel Airways and its colourful Icelandic owner.

Kevin Abbott, 51, chief executive of for the past nine years of the inflight caterer and airport stores operator, resigned yesterday, along with his finance director Heather McRae, 44. McRae joined Alpha Airports 10 years ago from its auditors PricewaterhouseCoopers, which is now conducting one of three investigations into Alpha's affairs.

Alpha's shares have been suspended since last month when PwC took the extraordinary action of rescinding its previous clearance of the 2005 accounts pending an inquiry into a 7.5 million catering contract signed last October.

The resignations come days after the company issued a formal statement to the London Stock Exchange, not naming the customer but giving details of arrangements under investigation in which it admitted 'senior personnel' had misrepresented information to PwC.

It has now emerged that the customer involved in the contract is Excel Airways, owned by Avion, the £500m Icelandic stock-market vehicle of Magnus Thorsteinsson, who made his fortune in Russia in the 1990s.

Among other things, the statement said: '[Alpha] consciously assisted that customer to put itself in a position in which it might have been able to manipulate its own financial statements in circumstances in which the customer's parent company was preparing for an initial public offering.'

With news breaking that Excel was the hitherto unidentified customer, Avion last night issued a statement to the Icelandic stock exchange, saying that its auditors KPMG were investigating the transaction.

Sources say Thorsteinsson - one of Iceland's cabal of increasingly high-profile entrepreneurs active in Britain - is privately seething over the Alpha statements, which appear to question the accounting policies of Avion. The company floated in Reykjavik in January.

The Excel contract is believed to have been the result of tough negotiations in a notoriously cut-throat market. The auditors' investigations are understood to be centring on the nature of rebates offered or given by Alpha over the life of the five-year contract.

Abbott is being replaced by highly regarded former Selfridges chief executive Peter Williams, who is also to join a 'special committee' of the board investigating the affair. That probe is currently made up of Alpha non-executives Lesley James and Terry Stannard and lawyers from City firm Ashurst.

The company declined to say whether the executives would receive compensation. Abbott, who was on £300,000 a year basic salary, had recently launched a shake-up of the company in which he intended, after years of underperformance, to combine Alpha's ground and inflight operations more closely.

[stewartf] 20/5/2006 07:46

This was an article in the paper last Wednesday:



The chief executive and finance director of the in-flight caterer and airport retailer Alpha Airports Group resigned yesterday as more details emerged of an accounting investigation that led to Alpha's shares being suspended three weeks ago. Kevin Abbott and Heather McRae, who joined some 10 years ago, left at once.

Alpha said they had gone "in the best interests of the business". Peter Williams, former chief executive of Selfridges, is the new chief executive and Tim Redburn, aformer chief executive of Simon Group, has been named interim finance director. Alpha's shares were suspended at 84p last month when its auditor, PricewaterhouseCoopers, took the highly unusual step of withholding approval from Alpha's full-year results. The company had shown a 6% rise in underlying profits to £18.5m. Two non-executive directors were asked to investigate. Mr Williams, who was approached to take over a fortnight ago, has since joined the committee.

The deal in question is a five-year £7.5m catering contract with Excel Airways, part of the Icelandic-owned Avion, which was floated in Reykjavik this year. In a statement to the London Stock Exchange, Alpha said last week that "senior personnel" had misrepresented information to PwC.

It is understood that no individuals nor the Alpha Group stood to gain from the details misrepresented but the Stock Exchange said Alpha had "consciously assisted" its client in a way that could have enabled it "to manipulate its own financial statements" as the client's parent company was preparing for flotation. Alpha services more than 100 airlines and runs more than 200 retail outlets at 77 airports in 15 countries.

[eithin] 16/5/2006 07:12

Maybe more doom than gloom.

Directorate Change

RNS Number:0274D
Alpha Airports Group PLC
16 May 2006


Alpha Airports Group PLC
("the Group")

Board Changes


Whilst the Special Committee's investigations into the concerns raised in the
Group's announcement of 10 May 2006 continue, Kevin Abbott, Chief Executive, and
Heather McRae, Finance Director, have today resigned as Directors of the Group.

The Group has today appointed Peter Williams as Chief Executive and Tim Redburn
as Finance Director. Mr Redburn will be assuming the role on an interim basis
for a minimum period of three months during which time a search will be
conducted for a permanent Finance Director.

Peter Williams, 52, was previously Chief Executive of Selfridges plc until
February 2004. Mr Williams, who joined Selfridges in 1991 as Finance Director,
led the company's demerger from Sears in 1998 and remained as Finance Director
of Selfridges plc until his appointment as Chief Executive. Mr Williams
qualified as a Chartered Accountant with Arthur Andersen and subsequently worked
as a management consultant at Accenture. He brings a valuable combination of
retail, finance and commercial experience, and since leaving Selfridges has
acquired a portfolio of senior non-executive positions.

Timothy Redburn, 52, is a Chartered Accountant with extensive experience in both
public and private companies in finance roles including in the aviation sector.
Recently he has been Group Finance Director and then Chief Executive of Simon
Group plc and Chief Restructuring Officer of Henlys Group plc. He is currently
Chairman of Nightfreight Holdings Limited.

Peter Williams and Tim Redburn will be joining the Special Committee, which
continues to be in constructive discussion with PricewaterhouseCoopers, the
Group's auditors, on the process for completing the audit of the Group's
financial statements.

[jeffian] 14/5/2006 22:55

eithin,

Errrmmm.....someone inflicts a £2.5m VAT scam on you; it appears that you have been party to falsifying information to assist in getting an IPO away and your auditors withdraw their certificate between preliminary announcement of results and posting to shareholders......and it's "not all gloom and doom" because AAP have opened a cafe at the Henri Coanda Airport, Bucharest?! What's your definition of "doom & gloom", then?

Regards, Ian

[eithin] 14/5/2006 11:21

Maybe not all doom and gloom. From their website 12/5.

CONTRACT WINS IN EASTERN EUROPE
12th May 2006

Alpha's growing operations in Bulgaria and Romania have announced further flight catering contracts. Alpha Airport Services, the Group's Bulgaria division, will cater flights for Lufthansa and Wizz Air from Sofia airport. In Romania, Alpha Rocas will cater for fast-expanding Carpatair from its unit at Bucharest Henri Coanda Airport.

Low-cost operator Wizz Air has just begun a service from Sofia, with destinations including Rome, London and Paris. Alpha Airport Services will provide sandwiches for onboard retailing. Lufthansa, the German national carrier, operates three flights a day from the airport with a full meal service from Alpha.

Robert Shepherd, Director of Alpha Flight Services Europe and USA, commented: "We are anticipating further low cost carriers to begin services from Sofia and look forward to further growth opportunities for our airline services business.

"A further major development will be the opening of Sofia's Terminal 2. Alpha already operates retail catering outlets within Terminal 1 and we are of course eager to explore duty and tax free opportunities within the new terminal."
In Romania, Carpatair has rapidly expanded since its start-up in 1999 and now operates 14 aircraft from its hub in Timisoara, an industrial city in the north west of the country. Its schedule includes domestic and European flights.
Shepherd continues: "Romania is seeing an increase in air travel ahead of its entry to the EU and there are several options for growth. The Romanian Ministry of Transport is planning to attract two million low cost passengers a year to Banaesa Airport, which is just 4km from Bucharest city centre, so of course we will be evaluating the opportunities there. Eastern Europe remains an exciting area for us."

Construction has also begun on Alpha's World News Café at Bucharest Henri Coanda airport. The unit, which will offer modern coffee shop service and broadcast international news channels, will open this summer.

[jeffian] 11/5/2006 12:56

Surprisingly little comment in the Press considering the potentially murky waters being stirred up. Even if Alpha get clearance on the financials (if not the ethics!), you would think the Press would be crawling all over the 'other party' which was apparently seeking to present a rosier-than-fact image for its IPO. Hmmmm! This - uncritical and straight-bat - report from the Daily Telegraph:

"Alpha investigates disputed contracts
By Alistair Osborne (Filed: 11/05/2006)



Alpha Airports, the airline catering company whose shares were suspended last month, has set up a special committee to investigate whether £7.5m of contracts with a major customer constituted "genuine transactions".

While Alpha received the cash, the company's auditor, Price Waterhouse Coopers, has refused to sign off the group's full-year accounts.

Alpha said that by entering into new contractual arrangements in October 2005 with the customer "the group consciously assisted that customer to put itself in a position in which it might have been able to manipulate its own financial statements in circumstances in which the customer's parent company was preparing for an initial public offering".

Alpha declined to name the customer but said two of its independent non-executive directors - believed to be Terry Stannard and Lesley James - had formed a committee "to look into and deal as they see fit with all related matters".

Alpha shares were suspended at 84½p on April 25, valuing the company at £147m."

[eithin] 10/5/2006 15:54

Update

RNS Number:7571C
Alpha Airports Group PLC
10 May 2006


Alpha Airports Group PLC
(the "Group")


Introduction

Further to the announcement made on 25 April 2006, the issues that led to the
suspension of the Group's listing are described in more detail below.


Current Trading

* The circumstances which gave rise to the withdrawal by
PricewaterhouseCoopers LLP ("PwC") of its approval of the preliminary
results announcement for the year ended 31 January 2006 of the Group did
not derive from any concern about the Group's cash position.

* The Group continues to trade in the ordinary course. It is in regular and
open discussions with its bankers, who are continuing to make available
credit to the Group under its main banking facility and who have indicated
that it is their present intention to continue to support the Group. There
are significant reserves of stock in the Group available and ready for the
important summer season. The Group continues to pay all of its suppliers
and other creditors in full as they fall due.


Summary of the issue

* The issues involved in connection with PwC's withdrawal of approval relate
to the Group's contractual arrangements with a customer entered into in
October 2005. The issues are:

* The Group entered into new contractual arrangements with the customer
which purported to make material changes to the structure of the
commercial dealings between the Group and the customer in 2005/6, but
did not significantly change the amounts payable to the Group in its
financial year. Material aspects of these new arrangements may not have
been intended to have proper commercial effect and so there is a
question about whether they were genuine transactions.

* By entering into the new commercial arrangements in October 2005 with
the customer, the Group consciously assisted that customer to put itself
in a position in which it might have been able to manipulate its own
financial statements in circumstances in which the customer's parent
company was preparing for an initial public offering. The Group does
not know whether or not the customer's financial statements were in fact
manipulated. If those financial statements were manipulated, and
depending on all other relevant factual circumstances, claims may or may
not be brought against the Group. If any valid claim were to be
brought, the Group would seek to pursue its own claims against third
parties.

* PwC have expressed the view that at some stages in communications
between certain senior personnel in the Group and PwC, the true effect
of the new contractual arrangements was misrepresented to PwC.


* In view of the seriousness of the issues, following the suspension of the
listing, the Board established a Special Committee of two non-executive
directors with the full powers of the Board itself to look into and deal as
they see fit with all related matters. As a first step, the Special
Committee instructed an independent law firm to investigate the matters
fully.

* Preliminary conclusions with regard to the first and second issues are that
they do give rise to valid concerns. It also appears that in entering into
these arrangements those responsible considered them to be in the best
interests of the Group because the arrangements also involved a long term
contract. They believed they took appropriate professional advice as to
the consequences for the Group and appear to have received no personal
gain.


Review of the Group's financial statements

* The Special Committee is currently in discussions with PwC about whether
and on what basis they should review and express an opinion on the Group's
financial statements.

* The Group has received all cash payable to it in respect of the financial
year ended 31 January 2006 from the relevant customer.

* The total receipts related to the contractual arrangements under
investigation were approximately #7.5 million in that financial year, which
have been received in full. The final accounting treatment of the
arrangements with the customer remains to be resolved.


Further announcements

Further announcements will be made in due course and in any event when a
conclusion has been reached as to the process for completing the audit of the
Group's financial statements and when it may be possible to lift the suspension
of trading in the Group's shares.


10 May 2006


Enquiries:

College Hill 020 7457 2020
Mark Garraway
Stephen Davie




This information is provided by RNS
The company news service from the London Stock Exchange
END

[maxk] 26/4/2006 08:09

Suspension of Alpha Airports shares after contract doubts

Andrew Clark, transport correspondent
Wednesday April 26, 2006
The Guardian


One of Britain's largest in-flight catering companies, Alpha Airports, has had its shares suspended after its auditor raised questions about the way it won an important contract listed in its annual accounts. Alpha announced yesterday that PricewaterhouseCoopers was withdrawing its approval from the preliminary results published last month showing a 6.3% rise in underlying profits to £18.5m.
In a brief statement to the Stock Exchange, Alpha said: "The withdrawal of that approval is in connection with inquiries by the auditors into a series of related transactions connected with a major contract awarded to the company during the financial year." It added: "The company is now urgently seeking to clarify the position with its auditors."


Article continues

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Based near Heathrow, Alpha employs 6,900 people at 83 airports in 15 countries. In addition to providing in-flight food, it operates terminal shops under brands such as World News, Glorious Britain and Alpha Duty Free. Its shares, suspended at 84p, had shot up by 26% following an increase in profits accompanied by a higher dividend and a new "One Alpha" strategy stressing growth in margins.
An Alpha Airports spokesman declined to provide further details. A PricewaterhouseCoopers spokeswoman would only say: "We can't talk about clients' affairs."

Alpha's contract gains last year included a deal to supply Malaysian Airlines with food at five airports in Australia - which, the company said, took advantage of its expertise in halal cookery. The company retained and extended a contract to supply food for British Airways' short hop BA Connect flights. It secured deals to open shops at Birmingham, Doncaster Sheffield and Sofia airports and a five-year contract catering deal for charter operators Excel Airways and Air Atlanta.

This is the second accounting difficulty for Alpha in a year. It had earlier taken a £2.5m hit after saying it was the victim of a fraud carried out by an unnamed third-party contractor. Alpha said this was unrelated to yesterday's announcement.

Alpha has had a long relationship with PwC, which has been its auditor for 12 years. Alpha's finance director, Heather McRea, joined from PwC after advising on the Alpha's flotation. Originally an arm of the hospitality group Forte, Alpha went public in 1994. Its board is chaired by a former Argos chief executive, Graham Frost.

Analysts said they were mystified by yesterday's announcement. The company's annual report, which was due to have been sent out to shareholders on Monday, has been delayed. The annual general meeting, scheduled for May 25, has been postponed.

[balcony] 25/4/2006 07:41

I was hoping for good news,But this will put the share in freefall.

[thunderdfive] 30/3/2006 12:44

Now THIS makes sense!

[beta_adjusted] 30/3/2006 12:43

Thomsonfly terminates in April so the loss from that not yet seen. Volumes are not especially high today as the sales figures etc. were released in January. The only real news is that the fraud is at the top of the expected range at £2.5m.

Negative free cash generation will worsen once the Thomsen contract ceases. 53m - 16m = 38m net debt due in 2006 means quite probably either a rights issue or significantly higher interest charges due to increased debt position. Looks pretty bad imo ...

B

[jeffian] 30/3/2006 10:05

I see great white has swum off into the deep blue after his takeover theories proved wide of the mark, but pretty sound figures from AAP today. A bit of sleight-of-hand using the pension credit to offset the fraud loss but probably fair enough as they're both one-offs and the resulting bottom line looks pretty sound. They seem to have dealt well with the fallout from the loss of the Thomsonfly contract. I particularly liked Kevin Abbott's pointer that a key to growing profits lay in their margins. Apparently, UK accounts for 82% of the business but produces operating profit return on sales of 2% compared to 12% in their overseas business. With £550m turnover and growing, every 1% improvement puts £5.5m on operating profit. Sounds good. There are also strategic possibilities for AAP now that Macquaries have joined the Ferrovial bid for BAA. AAP and Macquarie already have a relationship at M's existing airports so any increase in M's airport business could produce some juicy crumbs to feed off.

Regards, Ian

[jeffian] 15/2/2006 00:25

gb2005,

Off topic:



Regards, Ian

[gb2005] 14/2/2006 20:41

Sorry TGW

OFF TOPICS:
Jeff,

We might need you to look at ETI. Share buy back program started daily avg. 300 to 400 thousands share, which I understand should rise share value on the market.

But strangely, the share is moving lower and lower, daily, towards the 900p mark. I trust its performance but now I fear if it continues, it could hit the retracement 32.8% around 890p, or worse ... At 930p have thought about stop loss to protect profit, but I hold in believing it could be a only short term game by some shorters, the real value will correct the price. It wasn't so.

Now if it hits 900, a sale for me is inavoidable this time. What do you think could be the reason I can not see any RNS warning, changing in modell which affect the price so bad? If it hangs with the share buy back program where MM plays on the price to get back the share as cheap as possible how long should this program run?

You can response on the ETI or my e-mail ntk98_2000 at yahoo dot co dot UK

Thanks

[jeffian] 14/2/2006 11:55

great white,

You may actually "know" something to support your takeover theory or you may(from your 'chart breakout' comments) just be a chartist (in which case you need to turn the screen off occasionally and get out more), but there are other possibilities. AAP's share price, which was hammered on the profit warning, has only returned to and gently bobbed around the 70p mark, which is low historically and cheap on fundamentals (albeit anticipating worse next year). The modest uptick which got you posting about 'takeovers' on every thread came at around the time that it became known that BAA was a target. Rather than opening AAP (which is not in the same business as BAA) up to takeover, another possibility, entirely speculative, could be this:-
BAA bidder Ferrovial is likely to be supported by Australian bank Macquarie. Both already have airport interests, but they neither run these themselves, they turn to specialist operators to do this on their behalf. Macquarie have a close relationship with AAP via their existing UK regional airports. Thus, runs my thinking, a successful bid by Ferrovial/Macquarie could give AAP access to BAA's big international airports from which they are currently all but excluded. It's only a theory, and you may know something which the rest of us don't on the takeover front, but to my mind it fits with the modest recent recovery in AAP share price which have hardly seen the sort of exciting 'spike' one might expect if a bid was imminent.

Regards, Ian

[the great white] 13/2/2006 17:53

not long now....gambler buts now and tech/trader buys on the 72p break...!!!