TheLocalYokel
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- Jan 14, 2009
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- #81
CWL is barely scraping profit, so it's doubtful any further expansion of the terminal will be introduced unless it's absolutely necessary to the Operation. I think what's been done so far is sufficient until we see that growth.
It's likely to make an EBITDA profit next year according to the airport chairman but the date when an actual profit will be made has not been identified. The chairman merely says it will be sooner rather than later.
In 2016-2017 the pre-tax loss was £5.97 million whereas in that year the EBITDA loss was £896,000. Although EBITDA is often used to measure a company's performance in a sector against its peers it has its drawbacks as it excludes certain important aspects of a company's balance sheet; debt repayment and depreciation for starters.
Nevertheless, EBITDA performance at CWL is important as it is the measure specified in the Welsh Government's loans to its airport company - £10 million for terminal development and £13 million for route development. So at least the airport company's financial progress is along the right lines and, short of some major obstacle that cannot be foreseen, is likely to continue in that direction.
Clearly such a track record will be of immense value when the time comes to seek a serious private sector partner.