Airport owes £162,000 in rent

Echo: Airport owes £162k in rent Airport owes £162k in rent

SOUTHEND Airport is eight months late paying rent of at least £162,500 to Southend Council.

Last week – some eight months late – the airport’s operator, Stobart Air, submitted a document used to calculate the rent it owes the council, which owns the freehold to the land the airport sits on.

The airport pays the council £162,500 in rent, or three per cent of its annual turnover – whichever is greater.

But Stobart Air only submitted its “certificate of turnover and profit”, which is used to calculate the rent, last week.

A spokeswoman said: “There has been a delay in the airport submitting its certificate of turnover and profit, due to technical issues when the airport moved to new auditors.

“As soon as we became aware of this issue, we immediately contacted the council to ask for an extension, which it granted.”

Andrew Moring, Southend councillor responsible for corporate services, said: “This isn’t a significant concern because, regardless of when the certificate is produced, the rent is backdated with interest applied to any late payment, so the council’s income won’t be compromised.”

Comments (20)

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4:56pm Thu 12 Dec 13

black jack ketchum says...

Obviously a slow day at the echo office
Obviously a slow day at the echo office black jack ketchum

5:35pm Thu 12 Dec 13

Test Tickle says...

Try being Eight months in arrears with council house rent, you would be evicted faster than a greasy turd off a polished shovel!.
Try being Eight months in arrears with council house rent, you would be evicted faster than a greasy turd off a polished shovel!. Test Tickle

6:26pm Thu 12 Dec 13

Tich25 says...

The bigger the company the longer they take to pay. The Dagenham dustbin it would be six months before they even looked at any invoice
The bigger the company the longer they take to pay. The Dagenham dustbin it would be six months before they even looked at any invoice Tich25

7:26pm Thu 12 Dec 13

Nowthatsworthknowing says...

Chicken feed
Chicken feed Nowthatsworthknowing

7:37pm Thu 12 Dec 13

the citizen says...

£162,500 plus interest. A few well funded children's centres worth that is...... but probably already accounted for elsewhere in Council budget.
£162,500 plus interest. A few well funded children's centres worth that is...... but probably already accounted for elsewhere in Council budget. the citizen

7:45pm Thu 12 Dec 13

Nowthatsworthknowing says...

the citizen wrote:
£162,500 plus interest. A few well funded children's centres worth that is...... but probably already accounted for elsewhere in Council budget.
Hope it's paid, in time for the Council's New Years Eve knees up...
[quote][p][bold]the citizen[/bold] wrote: £162,500 plus interest. A few well funded children's centres worth that is...... but probably already accounted for elsewhere in Council budget.[/p][/quote]Hope it's paid, in time for the Council's New Years Eve knees up... Nowthatsworthknowing

7:45pm Thu 12 Dec 13

DogsMessInLeigh says...

Rent owed due to tech issues....extension given by landlord.....rent to be paid plus interest....a massive non story where the writer was hoping to create some raunchy comments...epic fail , Must do better.
Rent owed due to tech issues....extension given by landlord.....rent to be paid plus interest....a massive non story where the writer was hoping to create some raunchy comments...epic fail , Must do better. DogsMessInLeigh

8:21pm Thu 12 Dec 13

Howard Cháse says...

Once the Council have sorted out that independent airport car parking firm and the airport can cash in they'll probably hand it over.......
Once the Council have sorted out that independent airport car parking firm and the airport can cash in they'll probably hand it over....... Howard Cháse

9:00pm Thu 12 Dec 13

jolllyboy says...

Well said Howard.
Borrowed so much so probably having to juggle. Well well.............
Well said Howard. Borrowed so much so probably having to juggle. Well well............. jolllyboy

10:00pm Thu 12 Dec 13

max zorin says...

take it out of MP's expenses.
take it out of MP's expenses. max zorin

10:47pm Thu 12 Dec 13

jayman says...

remember.. Southend council sold the 150 year lease for a pound coin!!! rents are the only direct revenue the council get.

And that is eight months late!!!
remember.. Southend council sold the 150 year lease for a pound coin!!! rents are the only direct revenue the council get. And that is eight months late!!! jayman

10:57pm Thu 12 Dec 13

Steve H says...

Seems Stobart has taken lessons from the Ron Martin School Of How To Run Business.
Seems Stobart has taken lessons from the Ron Martin School Of How To Run Business. Steve H

2:05am Fri 13 Dec 13

blucky says...

Steve h, has hit the nail on the head with his comment about "The Ron Martin School of business" Stobarts are in the same club of "Fly now ,Pay Later" management. Stobarts have borrowed over £150 million to develop southend Airport and they are not making a dime out of the place ! only winner here is Easy Jet, (This Time next year it will be EasyJet Southend Airport !)
Steve h, has hit the nail on the head with his comment about "The Ron Martin School of business" Stobarts are in the same club of "Fly now ,Pay Later" management. Stobarts have borrowed over £150 million to develop southend Airport and they are not making a dime out of the place ! only winner here is Easy Jet, (This Time next year it will be EasyJet Southend Airport !) blucky

3:08pm Fri 13 Dec 13

Nowthatsworthknowing says...

Nowthatsworthknowing wrote:
Chicken feed
OK I was wrong...pig swill, looking forward to the new engineering contracts for Boeing which looks likely to come to fruition....
[quote][p][bold]Nowthatsworthknowing[/bold] wrote: Chicken feed[/p][/quote]OK I was wrong...pig swill, looking forward to the new engineering contracts for Boeing which looks likely to come to fruition.... Nowthatsworthknowing

3:21pm Fri 13 Dec 13

lucy10 says...

Steve H wrote:
Seems Stobart has taken lessons from the Ron Martin School Of How To Run Business.
i here ron martin has not paid any rates to sbc
[quote][p][bold]Steve H[/bold] wrote: Seems Stobart has taken lessons from the Ron Martin School Of How To Run Business.[/p][/quote]i here ron martin has not paid any rates to sbc lucy10

4:20pm Sat 14 Dec 13

jolllyboy says...

Lets do a sum here shall we 3% being 162,000 means that Stobarts made over £5million - so much for all the jobs that sort of profit has made.....Southend Council have fallen for the oldest trick in the book.Our council our asset sold for a pittance and getting a pittance in return.
Lets do a sum here shall we 3% being 162,000 means that Stobarts made over £5million - so much for all the jobs that sort of profit has made.....Southend Council have fallen for the oldest trick in the book.Our council our asset sold for a pittance and getting a pittance in return. jolllyboy

6:55pm Sat 14 Dec 13

jayman says...

jolllyboy wrote:
Lets do a sum here shall we 3% being 162,000 means that Stobarts made over £5million - so much for all the jobs that sort of profit has made.....Southend Council have fallen for the oldest trick in the book.Our council our asset sold for a pittance and getting a pittance in return.
i think you have made a slight error jollyboy.

the article above says that stobart are liable for 3% of profits made or £162,500 (whichever is greater). Southend airport have probably made significantly less in profit then five million in pre tax profit. From what I can gather its around half a million.

not exactly the 'golden goose' that it was sold to us all as. More like the poison chalice.
[quote][p][bold]jolllyboy[/bold] wrote: Lets do a sum here shall we 3% being 162,000 means that Stobarts made over £5million - so much for all the jobs that sort of profit has made.....Southend Council have fallen for the oldest trick in the book.Our council our asset sold for a pittance and getting a pittance in return.[/p][/quote]i think you have made a slight error jollyboy. the article above says that stobart are liable for 3% of profits made or £162,500 (whichever is greater). Southend airport have probably made significantly less in profit then five million in pre tax profit. From what I can gather its around half a million. not exactly the 'golden goose' that it was sold to us all as. More like the poison chalice. jayman

10:17pm Sun 15 Dec 13

Nebs says...

jayman wrote:
jolllyboy wrote:
Lets do a sum here shall we 3% being 162,000 means that Stobarts made over £5million - so much for all the jobs that sort of profit has made.....Southend Council have fallen for the oldest trick in the book.Our council our asset sold for a pittance and getting a pittance in return.
i think you have made a slight error jollyboy.

the article above says that stobart are liable for 3% of profits made or £162,500 (whichever is greater). Southend airport have probably made significantly less in profit then five million in pre tax profit. From what I can gather its around half a million.

not exactly the 'golden goose' that it was sold to us all as. More like the poison chalice.
The article says the airport pays the council £162,500 in rent, or three per cent of its annual turnover – whichever is greater. Annual turnover, not profit. So, the busier the airport the more the council gets in rent, regardless of expenses.
And if the airport turned over £5m and made very small profit from it then they must have spent the money somewhere, some of it locally on wages.
[quote][p][bold]jayman[/bold] wrote: [quote][p][bold]jolllyboy[/bold] wrote: Lets do a sum here shall we 3% being 162,000 means that Stobarts made over £5million - so much for all the jobs that sort of profit has made.....Southend Council have fallen for the oldest trick in the book.Our council our asset sold for a pittance and getting a pittance in return.[/p][/quote]i think you have made a slight error jollyboy. the article above says that stobart are liable for 3% of profits made or £162,500 (whichever is greater). Southend airport have probably made significantly less in profit then five million in pre tax profit. From what I can gather its around half a million. not exactly the 'golden goose' that it was sold to us all as. More like the poison chalice.[/p][/quote]The article says the airport pays the council £162,500 in rent, or three per cent of its annual turnover – whichever is greater. Annual turnover, not profit. So, the busier the airport the more the council gets in rent, regardless of expenses. And if the airport turned over £5m and made very small profit from it then they must have spent the money somewhere, some of it locally on wages. Nebs

11:42pm Sun 15 Dec 13

jayman says...

Nebs wrote:
jayman wrote:
jolllyboy wrote:
Lets do a sum here shall we 3% being 162,000 means that Stobarts made over £5million - so much for all the jobs that sort of profit has made.....Southend Council have fallen for the oldest trick in the book.Our council our asset sold for a pittance and getting a pittance in return.
i think you have made a slight error jollyboy.

the article above says that stobart are liable for 3% of profits made or £162,500 (whichever is greater). Southend airport have probably made significantly less in profit then five million in pre tax profit. From what I can gather its around half a million.

not exactly the 'golden goose' that it was sold to us all as. More like the poison chalice.
The article says the airport pays the council £162,500 in rent, or three per cent of its annual turnover – whichever is greater. Annual turnover, not profit. So, the busier the airport the more the council gets in rent, regardless of expenses.
And if the airport turned over £5m and made very small profit from it then they must have spent the money somewhere, some of it locally on wages.
quite right. My apologies.

I tried to find a disclosure of the 'certificate of turnover' on-line i could not find it.

If the airport owes 3% of turnover and if this is greater then 162,500. Then stobart air may be indebted to the people of Southend to quite a sum. Lets hope they pay up soon. I Believe that the airport are having financial problems though. This may be an underlining reason why the 'certificate of turnover' has been delayed for so long. or could it be that SBC are under pressure not to push too hard for money owed?
[quote][p][bold]Nebs[/bold] wrote: [quote][p][bold]jayman[/bold] wrote: [quote][p][bold]jolllyboy[/bold] wrote: Lets do a sum here shall we 3% being 162,000 means that Stobarts made over £5million - so much for all the jobs that sort of profit has made.....Southend Council have fallen for the oldest trick in the book.Our council our asset sold for a pittance and getting a pittance in return.[/p][/quote]i think you have made a slight error jollyboy. the article above says that stobart are liable for 3% of profits made or £162,500 (whichever is greater). Southend airport have probably made significantly less in profit then five million in pre tax profit. From what I can gather its around half a million. not exactly the 'golden goose' that it was sold to us all as. More like the poison chalice.[/p][/quote]The article says the airport pays the council £162,500 in rent, or three per cent of its annual turnover – whichever is greater. Annual turnover, not profit. So, the busier the airport the more the council gets in rent, regardless of expenses. And if the airport turned over £5m and made very small profit from it then they must have spent the money somewhere, some of it locally on wages.[/p][/quote]quite right. My apologies. I tried to find a disclosure of the 'certificate of turnover' on-line i could not find it. If the airport owes 3% of turnover and if this is greater then 162,500. Then stobart air may be indebted to the people of Southend to quite a sum. Lets hope they pay up soon. I Believe that the airport are having financial problems though. This may be an underlining reason why the 'certificate of turnover' has been delayed for so long. or could it be that SBC are under pressure not to push too hard for money owed? jayman

1:26am Mon 16 Dec 13

Nebs says...

jayman wrote:
Nebs wrote:
jayman wrote:
jolllyboy wrote:
Lets do a sum here shall we 3% being 162,000 means that Stobarts made over £5million - so much for all the jobs that sort of profit has made.....Southend Council have fallen for the oldest trick in the book.Our council our asset sold for a pittance and getting a pittance in return.
i think you have made a slight error jollyboy.

the article above says that stobart are liable for 3% of profits made or £162,500 (whichever is greater). Southend airport have probably made significantly less in profit then five million in pre tax profit. From what I can gather its around half a million.

not exactly the 'golden goose' that it was sold to us all as. More like the poison chalice.
The article says the airport pays the council £162,500 in rent, or three per cent of its annual turnover – whichever is greater. Annual turnover, not profit. So, the busier the airport the more the council gets in rent, regardless of expenses.
And if the airport turned over £5m and made very small profit from it then they must have spent the money somewhere, some of it locally on wages.
quite right. My apologies.

I tried to find a disclosure of the 'certificate of turnover' on-line i could not find it.

If the airport owes 3% of turnover and if this is greater then 162,500. Then stobart air may be indebted to the people of Southend to quite a sum. Lets hope they pay up soon. I Believe that the airport are having financial problems though. This may be an underlining reason why the 'certificate of turnover' has been delayed for so long. or could it be that SBC are under pressure not to push too hard for money owed?
Interim results for the six months to 31 August 2013 are at
http://www.stobartgr
oup.co.uk/investors/
reports-and-presenta
tions/interim-report
s/
No breakdown of Stobart Air turnover, and I don't know if the 3% includes the hotel, or car parking, or what.

Page 36 of this document is interesting...
http://ripassetseu.s
3.amazonaws.com/www.
stobartgroup.co.uk/s
hared/_files/documen
ts/oct_13/STOBARTGRO
UPSITE__1382621784_S
tobart_Group_Analyst
_Presenta.pdf
It says Potential capacity increased to around 5m passengers
I seem to recall reading somewhere that passenger numbers are limited to 2m, or maybe that was just a target, can't remember exactly, maybe someone can remind me with the appropriate link.
[quote][p][bold]jayman[/bold] wrote: [quote][p][bold]Nebs[/bold] wrote: [quote][p][bold]jayman[/bold] wrote: [quote][p][bold]jolllyboy[/bold] wrote: Lets do a sum here shall we 3% being 162,000 means that Stobarts made over £5million - so much for all the jobs that sort of profit has made.....Southend Council have fallen for the oldest trick in the book.Our council our asset sold for a pittance and getting a pittance in return.[/p][/quote]i think you have made a slight error jollyboy. the article above says that stobart are liable for 3% of profits made or £162,500 (whichever is greater). Southend airport have probably made significantly less in profit then five million in pre tax profit. From what I can gather its around half a million. not exactly the 'golden goose' that it was sold to us all as. More like the poison chalice.[/p][/quote]The article says the airport pays the council £162,500 in rent, or three per cent of its annual turnover – whichever is greater. Annual turnover, not profit. So, the busier the airport the more the council gets in rent, regardless of expenses. And if the airport turned over £5m and made very small profit from it then they must have spent the money somewhere, some of it locally on wages.[/p][/quote]quite right. My apologies. I tried to find a disclosure of the 'certificate of turnover' on-line i could not find it. If the airport owes 3% of turnover and if this is greater then 162,500. Then stobart air may be indebted to the people of Southend to quite a sum. Lets hope they pay up soon. I Believe that the airport are having financial problems though. This may be an underlining reason why the 'certificate of turnover' has been delayed for so long. or could it be that SBC are under pressure not to push too hard for money owed?[/p][/quote]Interim results for the six months to 31 August 2013 are at http://www.stobartgr oup.co.uk/investors/ reports-and-presenta tions/interim-report s/ No breakdown of Stobart Air turnover, and I don't know if the 3% includes the hotel, or car parking, or what. Page 36 of this document is interesting... http://ripassetseu.s 3.amazonaws.com/www. stobartgroup.co.uk/s hared/_files/documen ts/oct_13/STOBARTGRO UPSITE__1382621784_S tobart_Group_Analyst _Presenta.pdf It says Potential capacity increased to around 5m passengers I seem to recall reading somewhere that passenger numbers are limited to 2m, or maybe that was just a target, can't remember exactly, maybe someone can remind me with the appropriate link. Nebs

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