Red Funnel’s financial position is being kept under wraps for a little bit longer after the company changed its accounting period again, buying the cross-Solent operator another 3 months before it has to declare whether or not it is buoyant.
27th March is now the date by which Red Funnel has to file its accounts for 2022/23 after shortening its accounting period by just a single day, just like it did back in October.
The accounts were originally due to be filed with Companies House and made public at the end of September, but thanks to a known accounting method, the company has bought itself 3 months to get ship-shape. But that doesn’t appear to have happened with the accounting period shortened again at the end of December buying yet a further 3 months.
The shortening of an accounting period by a single day is known as a ‘one-day diddle’ and raises a red flag, suggesting that auditors are not prepared to provide a going concern opinion in the statutory accounts.
It’s understood that Red Funnel has debt of more than £40million – which should have been paid back last year. Other significant debts are also becoming due and all 3 vehicle ferries need replacing urgently, adding to the pressure.
A buyer was lined up to swoop in and take over the Southampton-based firm, however, negotiations broke down late in 2024. Another buyer is now being sought, but time is running out…
There are genuine fears that Red Funnel could collapse but prominent individuals tell Island Echo that may be exactly what is needed to force Government intervention in cross-Solent travel.
UPDATE MONDAY – A spokesperson for Red Funnel has said:
“While we cannot discuss commercially sensitive matters, we are pleased to report our investment process is well underway and progressing well. This will allow us to replace our Raptor class vessels and enhance our reliability, comfort, and sustainability.
“We are dedicated to ensuring Red Funnel operates sustainably and responsibly for many years to come. We will keep our customers updated when we have more information to share.”
Time it went its done rubbish hopefully someone else can make a better job of it..
Labour’s Richard Quigley says he is ‘desperate to get on with the job’ as he becomes MP for Isle of Wight West – and sees ferries, education, housing and schooling as his top priorities during his first 100 days in office.
He must be on holiday with Starmer.
Does Quigley know where the island is, my guess he is
living it up in his tax payers paid for London Home.
“Doesn’t give a about the island”
Enjoying his 90k+ salary and unlimited expenses.
WE ARE ALL IN IN TOGETHER
Lol
I’ve been saying it for a year or more now, that company is going bust.
Too much money going out on bosses bonuses and share holders
Not surprised
The way things are going we will be trapped on the island
All the Ferry Companies will go bust.
I might invest in a Dinghy
Lol
I would hazard a guess its on the rocks
If the company goes bust hopefully it will be nationalised at virtually no cost and run on a not for profit basis – and money it makes can be re-invested in the flet instead of going in bosses bonuses and dividends. This should lower fares and in turn put pressure on Wightlink to do likewise. We all know that privatisation doesn’t work where there is no meaningful competition and where public services need to drive the business not ever greater profit.
‘Money made can be reinvested’ is a non-sequitur, given that you have just said that it should be ‘run on a not for profit basis’.