WIGHTLINK TURNOVER DOWN £30MILLION DURING COVID BUT FERRY COMPANY STILL MAKES A £4MILLION PROFIT

Cross-Solent ferry operator Wightlink saw a £30million drop in turnover during the COVID pandemic, but still made a £4million pre-tax profit – according to the latest figures from the company’s accounts.

It has been revealed that the company, which operates on 3 routes to and from the Isle of Wight, generated £38.4million in revenue during the financial year ending March 2021 – that was a fall of £30million compared to the previous year.

Despite this 43% reduction in turnover and an operating loss of £3.7million, the company has filed a £4million profit before taxation.

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Business interruption insurance helped save the day for Wightlink, with insurers paying out in excess of £9million. A total of £6.4million in Government grants – £4.5million for furlough and £1.9million from the Department for Transport – also helped to bolster Wightlink’s position during the depths of the pandemic.

Official figures show a dramatic 57% fall in passenger numbers from 4.5million to 1.9million, with the number of sailings operated also falling from 41,834 to 19,429 – a 53% reduction.

The company’s strategic report states that Wightlink ended the financial year in a ‘satisfactory’ position given the challenging events of the year. Its net assets are now worth a whopping £132million.

Competitor ferry operator Red Funnel reported losing £24.7million as a result of COVID, as previously reported by Island Echo.

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The views/opinions expressed in these comments are solely those of the author and do not represent those of Island Echo. House rules on commenting must be followed at all times.
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Nothing but the truth
Nothing but the truth
5 days ago

So in essence government grants delivered Wightlink a healthy profit for the year.

Well done Treasury.

Dr.jollop
Dr.jollop
Reply to  Nothing but the truth
5 days ago

Yep, privatisation stinks !
The rich get richer at the tax payers expense.

Sir Digby Chicken Caesar
Sir Digby Chicken Caesar
5 days ago

Only a 57% drop during lockdowns, surely that should have been almost zero seeing as you were not supposed to travel and people were working from home, just goes to show how many 2nd homeowners and holiday lets were still in operation…. investigation should be put in place here. Island Hideaways indeed.

THE DRIVER
THE DRIVER
Reply to  Sir Digby Chicken Caesar
4 days ago

So how about all the food people were eating ? So more transport coming across to stock supermarkets. And all the buying on line so more deliveries. It cost more to bring bigger trucks over, so just maybe a lot of there income came from them…..
Just saying..

Nothing but the truth
Nothing but the truth
Reply to  THE DRIVER
4 days ago

Good point. Suggests then that they didn’t need the £1.9 million bail out.

isle of wighter
isle of wighter
5 days ago

Perhaps then, they should repay the government support as they were only supposed to be “kept going” during the lockdowns, not generate profits from the government. The government should say -“you pay us the £4m and that gets you to zero, which is where our support was supposed to get you to.” That would go some way to repaying the money we gave you.

Reg Dennis
Reg Dennis
5 days ago

how nice for the shareholders, good to see the government have donated our money to fill their pockets.

lucas
lucas
5 days ago

Im glad they no longer need my tenner for tea and a sandwich on the trip. They refuse to take cash, so now I pack my own, I can sleep at night now I know wightlink is not down to its last few quid…

Billiam O'brady Jr
Billiam O'brady Jr
4 days ago

This is why we need our own universities, grammar schools, millitary (including naval board) and most importantly our own parliament!
#IOWHomerule

Dr.jollop
Dr.jollop
Reply to  Billiam O'brady Jr
4 days ago

Yay, I am up for that !
We could even have our own space program. Can I be a sniper ?
But seriously, why can’t we be more like Jersey and the Isle of Man.

Phil
Phil
4 days ago

Shame they never went bankrupt, as the government could have took the route over. Don’t worry though, just watch their fares go up a ridiculous amount to cover it

isle of wighter
isle of wighter
Reply to  Phil
3 days ago

and you would have been paying a “ferry levy” through your council tax to pay for the government running the route

be careful what you wish for.

 

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