The full extent of the financial problems facing the troubled Highland Airways group emerged for the first time last night.
Documents released yesterday showed the company, which operates lifeline flights across the north and isles, lost more than £400,000 in 2008.
It went into the red again in 2009 and, although the actual losses have not yet been disclosed, directors said trading was even more difficult than it had been the previous year.
They have also held talks with HM Revenue and Customs on payment terms for outstanding taxes.
The Press and Journal reported at the end of January that Highland Airways was locked in talks with a potential new investor and there were hopes of a quick deal.
This has yet to happen, despite news last month that an “exclusivity agreement” had been signed with a possible purchaser.
Highlands and islands MSP David Stewart said last night it was crucial a deal was struck.
He said: “Clearly there is a need for more investment, and to my understanding a company was looking to put sums into the operation.
“I am still positive that, if investment can be found, Highland Airways will continue as a going concern.
“We are talking about skilled workers providing an excellent service in the Highlands and islands.”
“It is also one of the few companies that has its headquarters in Inverness.”
The 2008 results for parent company Highland Airways (Inverness) were released by Companies House yesterday.
A directors’ statement accompanying the figures said that, at the time of signing the accounts last Friday, they were still in active discussions with prospective new investors who were able to meet the cash requirements of the business.
The company said in the results there was a need for “significant restructuring”, which will raise job fears among the workforce of about 90.
Highland Airways (Inverness) was nearly £411,000 in the red in 2008, while turnover in the year was just over £10.5million.
It had made profits of more than £383,000 in 2007 on turnover of £8.1million.
The group said gross margins had been significantly affected by high fuel costs and unprecedented uncertainties in the airline sector as a result of the nationwide recession.
It added: “The directors are aware that the group is reliant on the continuing financial support of the group bankers for both long-term loan facilities and to support the short-term working capital.”
Highland Airways (Inverness) said the bank had continued to support the group, albeit with specific restrictions, and further discussions were ongoing over the availability of the bank facility in the future.
“This is wholly dependent on the successful outcome of negotiations with potential investors and significant restructuring,” the group added.
It said the directors were in discussions with HM Revenue and Customs to agree suitable payment terms for direct government taxes due by companies in the group.
“These discussions are ongoing at the date of the approval of the financial statements, and the outcome of these discussions remains uncertain.”
Highland Airways (Inverness) added that directors had considered financial forecasts for a period greater than 12 months from the approval date of the accounts as part of their overall business plan and, for these to be achievable, there needed to be a significant restructuring and cash injection.
The directors believed the group would be able to operate subject to the successful negotiation of extended credit terms for certain key suppliers and HM Revenue and Customs, the support of the principal bankers and other external investors.
The group added: “Subsequent to the year end, the directors have been looking to identify opportunities to reduce direct costs and improve the cash-flow position of the group, without compromising on the quality of the service provided.
“The directors are in negotiations with potential private investors as well as seeking public sector financial support as a means of securing the long-term future of the companies within the group and the service that these companies provide to the local community.
“As these discussions are progressing, their outcome remains uncertain.”
Highland Airways operates subsidised services between Stornoway and Benbecula, Oban and the Inner Hebrides.
It also delivers newspapers to some of the Scottish islands and operates corporate shuttle and air charter services.