Hovertravel has reported a deepening of financial losses and a collapse in its equity position, with newly published accounts showing a £1.15million operating loss – the third consecutive year of significant losses for the cross-Solent operator.
According to the company’s latest accounts, up to 31st March 2025, turnover fell by more than 5% to £5.93million, down from £6.26million the year prior, with the company citing weaker Summer traffic and softer Isle of Wight tourism as key reasons.
Despite attempts to maintain pricing and commercial momentum, the business experienced a worsening of its operating loss from £717,712 to £1,147,237.
Total comprehensive losses stood at £1,182,060 for the year, driven by inflationary cost pressures and the loss of a significant pension asset. In 2024, the company had recorded a pension surplus of over £1.6million. However, that asset was written off in the latest accounts, replaced by an actuarial loss of £182,000. As a result, total equity plummeted from £1.63million to just £56,896.
Since 2022, the company has accumulated more than £3million in total comprehensive losses, while cash reserves have shrunk by over 30% and net current liabilities have worsened to £2.62million.
The accounts confirm that Hovertravel remains reliant on financial support from its parent company, Bland Group (UK) Holdings Limited, under the ultimate controlling party of Jargo Holdings Limited, to continue operating as a going concern. Directors expressed confidence in the long-term viability of the business, noting continued investment in fleet maintenance and a reported on-time performance of 97.3%.
But the company’s auditors, BDO LLP, have included a formal warning in the accounts that a ‘material uncertainty’ exists, which may cast significant doubt on the company’s ability to continue as a going concern. While no concerns were raised about accounting accuracy, the auditors highlighted Hovertravel’s dependency on its parent company for financial support and noted that, without this backing, the business may struggle to remain operational in the long term.
In December 2024, it was revealed that Hovertravel was looking to cut its workforce by 17 – a move driven by the loss of 86,000 passengers since the pandemic, Budget changes by the Labour Government and the-then £780,000 loss. Latest figures show that 7 staff members have been lost from the terminal operations and there is 1 less pilot, but there are 3 more staff in office administration.
The company is now under the leadership of Cindy Peche, who was appointed Managing Director in May last year. At the time, she said the company was focused on continuity, resilience and strategic growth – for the business, customers and the wider community.
In this year’s accounts, passenger numbers are not included.
In a statement, a spokesperson for Hovertravel has said:
“Like many businesses operating in a challenging market during that period, our year-end accounts for 2024-25 reflect the pressures faced across the sector and the region.
“Since then we have made several strategic changes to strengthen our position for the future, including improvements to our internal structure, operating timetable and ticket offering. These steps place us on a more resilient footing, and everyone at Hovertravel remains fully focused on delivering a reliable, high-quality service for our customers”.
