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Alpha Airports hit by £11m bill relating to last year's accounting scandal

28 March 2007 by
Alpha Airports hit by £11m bill relating to last year's accounting scandal

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.

Alpha Airports win two UK airport deals

Alpha Airports appoints new chairman

Commercial director David King to leave Alpha Airports

Alpha Airport signs £800m contract extension with Manchester airport

Alpha Airports rebuilds its executive team

Airline caterer Alpha Airports scraps legal claim of £2.5m

Top directors at airline caterer Alpha Airports resign

by Christopher Walton

E-mail your comments to Christopher Walton](mailto:christopher.walton@rbi.co.uk?subject=Alpha Airports hit by £11m bill relating to last year's accounting scandal) here.

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