Esken Limited Provides AGM Update on Sale of Core Businesses and Renewables Division Progress

Esken Limited, an aviation and renewables group, has provided an update ahead of its Annual General Meeting (AGM). The company has completed a strategic review of its operating businesses and is now progressing with the sale of its core operating businesses and residual non-core assets. The sale process for the Renewables division is significantly advanced, and an agreement is expected to be concluded soon, subject to shareholder approval. The challenges faced by Esken Renewables regarding biomass plant outages have continued into the new financial year, but there are signs of improvement in gate fees and plant performance is expected to improve in the second half of the year.

In the Aviation division, following the sale of Star Handling in May 2023, Esken now comprises London Southend Airport (LSA) and a small ground handling operation. LSA has benefited from strong passenger demand during the summer season, with other London airports returning to pre-pandemic passenger levels. The partnership with easyJet has resulted in an expanded schedule, and discussions are ongoing for an expanded summer schedule in 2024 with other airlines. The decision to sell the airport in order to crystallize shareholder value and secure a long-term partner has been reinforced by market momentum, and there has been initial interest from parties recognizing the strategic value of LSA.

Esken has also completed the sale of its interest in the Mersey Biomass Energy plant, receiving proceeds of £9 million. Discussions are ongoing for the remaining non-core assets with the aim of realizing value for shareholders. Additionally, the remaining two aircraft leased by Propius following the demise of Stobart Air will be returned to the lessor by mid-October, concluding all lease payments and return condition obligations. As part of the company's strategy for managed disposals and wind down, a consultation with staff at the group level has been undertaken, and a phased redundancy plan has been implemented to reduce central costs as disposals are completed.