Southend Airport owner Stobart Group has made additional cash reserves available to upgrade its runway.
Additional space will be created on the runway as part of the work to enable more airpcraft to fly from the airport, a Stobart spokesman has told New Civil Engineer.
In a trading statement released yesterday, Stobart said it wanted to invest in the airport’s infrastructure so it could serve up to 10M passengers a year.
To fund its investment in the runway Stobart is reducing its dividend to 3p every six months, reducing the annual pay-out from 15p a share to 6p a share.
The dividend cut will also fund other Stobart investments aimed at generating growth.
Stobart company secretary Louise Brace said: “In light of the current assessment of our investment requirements and cash flow the board believes it would be more appropriate to move to a twice-yearly dividend made in equal payments of 3p per share.
“The first payment of 3p per share is expected to be paid in July 2019.”
Stobart also revealed that passengers using Southend Airport rose by 33% to 1.5M between 2017 and 2018.
Contractor Lagan started work on a £10M maintenance project to upgrade the durability and performance of the runway at Southend Airport in January this year. It is expected to last three months.
The last set of major runway works to take place at the airport were in 2011. Before that, maintenance was carried out in 1994.
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