Alpha’s Profits Plunge By 70% As Cleanup After Scandal Takes Toll

By ROBERT LEA

AN Pounds 11 million cleanup at Alpha Airports by new chief executive Peter Williams has seen profits at the inflight caterer and airports shops group plunge 70% to Pounds 5 million.

The former Selfridges boss came in 10 months ago after an accounting scandal saw the departure of the group’s chairman, chief executive and finance director. The total cost of that affair in which the auditors withdrew the accounts has been put at Pounds 4.1 million, including Pounds 1.7 million of redundancy costs mainly covering chief executive Kevin Abbott and FD Heather McRae.

Further costs included a Pounds 3 million fraud against the company on VAT collection. At the operating level underlying profits fell 13% as tightened security and onboard luggage limits hit hard airport passenger spend.

Williams is aiming to expand Alpha’s “buy on board” services for budget airlines such as easyJet and to win contracts at newly developed overseas airports.

The full-year dividend is cut to 2.25p from 4.2p.

(c) 2007 Evening Standard; London (UK). Provided by ProQuest Information and Learning. All rights Reserved.