Alpha Airports has revealed the turbulent events of 2006, which saw its chief executive quit after an accounting scandal, cost it nearly £11m.
The airport and airline caterer said the fall-out from the resignations of senior executives, contract losses and subsequent restructuring of the business cost £10.8m in the full year ended 31 January 2007.
Pre-tax profit therefore fell to £5.2m compared with £18.4m a year earlier, while turnover was marginally ahead at £561.5m (2005: £550.9m).
Chairman Martin Flower said: “The group is in a much stronger position as a result of the management actions taken during the year.”
Alpha Airports had its shares temporarily suspended from the London Stock Exchange in April 2006 over accounting uncertainties to do with a deal with Icelandic charter airline Excel Airways.
The subsequent fall-out saw chief executive Kevin Abbott and finance director Heather McRae quit, and chairman Graham Frost step down.
Separately the company was a victim of a £2.5m fraud from a third-party consultant but scrapped legal action to recover costs in July.
Flower said the company was now focused on growing its international business – 81% of revenue currently comes from within the UK where margins are low – demonstrated by a deal since the financial year-end to provide catering for Etihad Airways, the national airline of the United Arab Emirates.
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by Christopher Walton
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