West Somerset Railway General Discussion

Interesting! Too much loco for Epping-Ongar perhaps? It should find a ready buyer - don't Warner Bros want one for another theme park? Would be a terrible waste for that to happen, when a non-working replica would do just as well.

 

Are Halls not red route locomotives?

Can someone remind me how much was spent on infrastructure in the last year?

 

Wasn't hickly point the only bit in his empire that was profitable ? seems a strange decision if that was the case, unless Someone has eyes on acquiring the assets of the WSRplc and need a readily availible sum of money to buy them should the banks call their loans in.

 

Arguably that’s the best time to sell a company if you want a good price.

 

I wonder if JJP was offered a price he didn't want to refuse?

But we're he to get control of the WSR what then?

How would be find the necessarily capital expenditure?

 

But not for the rest of his companies if it is the only bit that makes a profit.

Tbh I'd not read anything wsr related into the sale. Buying a loco he can't use is pointless, taking control doesn't suddenly fix the infrastructure issues or resolve the lack of cash through the fare box. Of course if he wants to use the cash to pay the S&DRT for the Washford buildings, I'm not stopping him.

 

I found one website that suggested that JJP Holdings got paid £8m for this, but I am rather sceptical of this.

 

As reported by Share Cast

FirstGroup announced on Monday that its wholly-owned subsidiary First South West has acquired the remaining 50% shareholding in its Somerset Passenger Solutions (SPS) joint venture.

The FTSE 250 passenger transport operator said the shares were acquired from JJP Holdings South West, giving it control over the business going forward.

It said the consideration, being funded from its existing cash resources, was £8.4m paid on completion, with potential deferred consideration of up to £1.6m if certain conditions were met. ..........

 

Thanks for the info. Whether it is something to "like" or to fear I don't know.

 

would 8 Million enable JPP holdings to buy the company, from the receivers , if it came insolvent, and what would the likely price be?

 

Cash in the bank or debts to be cleared first?

 

Why are we assuming that the primary purpose of this would be WSR oriented? Without knowing anything of the choices to be made, I'd expect motives to include personal profit and the benefit of the whole portfolio of his businesses.

 

Like the old airline joke I suspect re the WSR
Question How do you end up with £1m in the bank?
Answer Start off with £8m.

 

Kinlet Hall Ltd (01585117), a subsidiary of J J P HOLDINGS (SOUTH WEST) LIMITED, was carrying ~£340k of debt as at 29/2/2020
JJP HEAVY HAULAGE LTD ~£130k, + a Bounce Back Loan taken out after 29/2/2020
VINTAGE ROAD, RAIL AND STEAM LTD loss making, & has used a CBILS loan from the government

So £1m could easily go on clearing debts.

A quick look at the businesses suggests that they are largely in the 'hire' business, eg hiring cars & old buses out for weddings etc. I wouldn't expect that market to recover until mid 2022.
I also don't believe it's a sector that particularly makes money.


There is easily enough profit from the SPS sale for JJP to retire very comfortably, & have the vintage buses as a hobby.
It would be daft to sink that money into something like taking over the WSR, as it's not going to produce a return.

 

I believe the house is let out.
I also doubt the income from that letting is covering the cost of the mortgage on it.

 

However,... this is WSR SM we are talking about here though. The evidence of the last few years does not convince me those at the top are rational, logical or coherent in their decision making.

 

Your final line is entirely correct, yet preservation history is full of examples of people making decisions that are not economically driven. We lack both the full context for the sale and it's investment, and also sufficient insight into JJP's intentions to do anything more than speculate randomly on how the money may be used.

 

Since becoming chair, He has made several references to it being his railway, he also tried to get others to ponder buying out the shareholding of the PLC, It would be a heart over head decision, most likely based on his own ego, than an measured decision, that would I am sure lead to personal bankruptcy because the line can never pay for itself, as it is at the moment, the only way it might, would be if the freehold could be acquired, and large land plots and everything non railway sold for redevelopment. such as selling BL Station House, Minehead station site, to finance a new, much smaller station beyond seaward way.