Virgin Atlantic hits Top 10 UK private companies.

[Nottingham Nick]

The Sunday Times has reported on Britain's Top 100 Private Companies.

Virgin Atlantic is at Number 10 - up from 16, showing a £34 million profit in a £1912 million turnover. The company is described as Airline and Tour Operator, so I assume that these figures include money generated by VH.

Guess the Bean Counters will be raising a glass of tap water in celebration. ;)[8D]

BTW, if anyone has problems with the link - it is to a PDF document.

Nick

[Bazz]

Interesting, I had not realised the Sinapore Airlines owes 49% of Virgin Hols as well as VS, assuming that is correct of course?

Nick

Thanks for the link...

So every £100 pounds of sales yields £1.78 pounds profit ?

I wouldn't have thought that to be a great ratio, though

(a) I assume it will depend on how much capital is deployed to generate these sales

and

(b) perhaps the disclaimers in the "choice of criteria" section should be our guide.

Paul

But what you are looking at there is probably net profit and that'll do very nicely to the bean counters as it is nearly 2%. A lot of commodity sellers will work on somewhere between 2% and 10% gross profit and wouldn't make anywhere near that once costs are removed.

Paul

Originally posted by p17blo
But what you are looking at there is probably net profit and that'll do very nicely to the bean counters as it is nearly 2%. A lot of commodity sellers will work on somewhere between 2% and 10% gross profit and wouldn't make anywhere near that once costs are removed.

Paul

A net profit of 2% is woeful - however as a private company there may well be many interesting things taking place to minimise profit and therefore corporation tax. Comparing VS and BAs profits cannot be done easily in a like for like way.

[Decker]

A little harsh - compare to the US industry

In 2000, U.S. passenger and cargo airlines recorded a $2.5 billion net profit, reflecting a 1.9 percent margin. From 1997 to 1999, the industry enjoyed net margins of 4.3 percent to 4.7 percent. (Put in perspective, these rates, which were a deregulated (post-1978) airline industry Òhigh-water mark,Ó compared unfavorably to the range of 5.4 percent to 6.7 percent enjoyed by the average U.S. business over the same three years.)

Source http://www.airlines.org/economics/revie ... kQandA.htm