New vessels

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Find out the latest updates and more in depth information from our experts on Scillonian IV and Menawethan.
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Finance

Fares and freight prices

   Fares for the visiting market

Fares for non-islanders are forecast to increase by 5% plus inflation until 2026 followed by inflation-only increases.

We will continue to offer discounted fares for a significant number of passengers such as group bookings, gig clubs and passengers travelling to other Isles of Scilly events.

   Fares for Islanders Travel Club

Islander Travel Club fares will retain a circa 70% discount compared to our standard fares and will only be subject to inflationary increases.

   Freight prices

An increase in freight pricing will follow a similar pattern to fares for non-islanders based around transporting 15,000 tonnes. If the volume increases above this, price increases will reduce.

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Finance

Financing the project

To deliver the vessels we will be using private funding which will cover 80% of the project costs. The balancing 20% has been paid from the Group’s own cash reserves.

The loan is provided by Lombard NatWest, the company which previously provided funding for Gry Maritha.

The loan repayments are based on a 20-year cash flow at a very competitive interest rate.

During the build phase, variable rate interest-only payments will be made. When the vessels are delivered, capital and interest repayments will commence and the Group will then have the option of either fixed or variable rate repayments.

Based on a 5% base rate, average repayments (capital and interest) will be circa £3m per year with higher interest payments at the start of the loan reducing each year as the loan progresses. The Group aims for the majority of the loan repayments to be self-financed by the Group with minimal increases to fares and freight prices.

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