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The Art of the Deal - Analysing Trump's Scottish Golf Resorts

10-27-2020 08:59 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Behind the Balance Sheet

Proftability compared

Proftability compared

President Trump is proud of his two Scottish investments, Trump International in Aberdeenshire and Turnberry. In a new analysis, Behind the Balance Sheet evaluates their performance against their closest peers and finds them falling short.

The consultancy has ranked the resorts on a range of financial performance indicators and on almost every metric, the two Trump companies lag their peers, often significantly as can be seen in the profitability comparison chart. In the last five years, Trump's two Scottish resorts have lost £14m while peers Gleneagles and Loch Lomond Golf Club accumulated £13m in profit. Part of the reason is far lower sales at the Trump resorts, but margins are also lower at the Trump resorts which have both racked up significant losses.

Trump has lost money on the loans he has made to the two companies - sterling has collapsed against the dollar leading to a near $40m loss to the lenders (Trump himself and a Trump trust).

Using the price paid for Gleneagles, the analysts calculate the value of the two businesses could be less than the initial cost plus cash injected into them since their acquisitions.

For the money he has invested in his two resorts, Trump could have bought profitable Gleneagles and had cash left over. Or he could have simply invested in an S&P 500 and he would have an asset today which Behind the Balance Sheet estimates would be worth $420m+.

More information can be found in the full article https://www.behindthebalancesheet.com/blog-1/trumps-finances-a-golfing-story

40 Bowling Green Lane, London EC1R 0NE
info@behindthebalancesheet.com
Stephen Clapham

Behind the Balance Sheet is an investment research and training consultancy which provides two services to its institutional investor clients:
- Bespoke investment research
- Investment-related training in-person or by webinar
In addition, it runs an online training school for investors, with courses for both private and professional investors.

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