RNS Number:4447S
TBI PLC
25 November 2003
TBI PLC
("TBI" or "the Group")
Interim Results for the six months ended 30 September 2003
The TBI Group is one of the UK's leading airport operators. It owns and operates
London Luton, Belfast International and Cardiff International Airports. The
Group also owns and/or operates a number of overseas airports and
airport-related businesses.
SUMMARY
* Turnover: #103.5 million (2002: #99.7 million)
* EBITDA* : #32.5 million (2002: #33.9 million)
* Operating profit: #14.5 million (2002: #23.1 million)
* Profit before tax (and amortisation and exceptional items): #20.1m
(2002: #22.1m)
* Profit before tax: #7.2 million (2002: #15.0 million)
* Earnings per share before amortisation and exceptional items: 2.13p
(2002: 2.52p)
* Earnings per share: 0.01p (2002: 1.34p)
* Maintained interim dividend of 0.70p per share
* Passenger numbers 9.95 million (2002: 8.71 million)
* Operating profit before depreciation, amortisation and exceptional items
Keith Brooks, Chief Executive, comments:
"Against a difficult industry backdrop we are pleased by the significant
progress that TBI has made in adapting our business, so as to encourage airlines
to develop further their operations with us and to attract other low cost
carriers to our airports. As a consequence we continue to handle ever more
passengers; which is the key driver of our business going forward."
25 November 2003
ENQUIRIES:
TBI plc Today: 020 7457 2020
Keith Brooks, Chief Executive Thereafter: 020 7408 7300
Caroline Price, Finance Director
College Hill Tel: 020 7457 2020
Gareth David
Justine Warren
Overview
These results reflect the comments made in our trading update last month, and
are characterised by the continued growth in low cost traffic at each of our
four core European airports, despite the adverse effects during this period of a
number of external factors, including the conflict in Iraq and SARS.
Looking at the mix of our business, passenger numbers through our primary
airports (London Luton, Belfast International, Cardiff International and
Stockholm Skavsta) have continued to reflect the transformation of TBI into a
provider of terminal facilities for low cost carriers. More than 68% of our
European airports' passenger numbers were accounted for by low cost traffic
during this period (2002: 59%), while charter traffic fell to 25% (2002: 30%)
and full service now represents only 6% of passenger numbers (2002: 10%).
Principal features of this period have been significant growth in low cost
traffic at Cardiff, where bmibaby has now completed its first full year of
operations, and at Skavsta, where Ryanair established a base in April of this
year. Within the charter market there was a significant fall-off in traffic at
Luton, following the withdrawal of MyTravel, but a substantial increase at
Belfast.
Financials
It was pleasing, against the backdrop of external factors mentioned above, to
achieve a 4% increase in total revenue for the half year to #103.5 million
(2002: #99.7 million), and an operating profit before depreciation, amortisation
and exceptional items ("EBITDA") of #32.5 million (2002: #33.9 million),
reflecting the increased proportion of low cost to charter and full service
passengers. Operating profit was #14.5 million (2002: #23.1 million).
Our profit before tax for the period was #7.2 million (2002: #15.0 million),
reflecting principally the increased impact of exceptional items (referred to
below), while earnings per share for the six month period were 0.01p (2002:
1.34p), or 2.13p (2002: 2.52p) before amortisation and exceptional items. The
interim dividend is being maintained at 0.70p per share, reflecting the Board's
confidence in the Group's future prospects. This will be payable on 2 January
2004 to shareholders on the register at the close of business on 5 December
2003.
London Luton
Passenger numbers at London Luton rose by 5% to 3.8 million during this period,
but within that total there was a 15% decline in charter passengers, reflecting
the withdrawal of MyTravel. By contrast, low cost traffic rose 8%, and easyJet
confirmed London Luton as the focus of its future growth, announcing that it
would increase the size of its London Luton-based fleet from 12 to 14 aircraft
and indicating a significant future expansion of its London Luton-based
operations Early evidence was the announcement on 5 November 2003 of a London
Luton to Berlin Schonefeld service, commencing on 1 May 2004, which should
generate in excess of 200,000 new passengers at London Luton Airport.
We are currently considering the future phasing of further commercial and
terminal development at London Luton, and may elect to extend some of the retail
concessions, which are due to expire in April 2004, whilst decisions are
finalised. As part of a UK wide initiative, tenders have been invited for a
contract to take over management of car parking at the Group's UK airports, with
effect from next Spring.
During the period, we took the opportunity to refinance the original project
finance-style facility, which was expensive and unwieldy. Exceptional costs of
#1.8 million, relating to the early cancellation of interest rate Swaps, have
been reflected in the period's results, but the annual cost benefit of the
refinancing will be approximately #1.6 million.
Belfast International
A total of 2.2 million passengers used Belfast International during this period,
with the airport enjoying an excellent Summer season for charter traffic, which
rose by 20% compared to 2002, to 642,000 passengers. There are indications that
this trend will continue through the Winter.
Growth in low cost traffic using the airport also continued, with passenger
numbers up by 24% to 1.6 million. The airport should benefit from a recently
announced Government initiative to help airports in Northern Ireland by
encouraging airlines to develop new routes. We are hopeful of being able to
announce further new routes and carriers serving Belfast International in the
near future.
There has been an anticipated increase in our cost base at Belfast, primarily
due to what will be a recurrent annual funding increase of some #0.5 million to
the defined benefit staff pension scheme, which has been closed to new members.
Cardiff International
Overall traffic at Cardiff International has risen by 38% to 1.2 million
passengers, compared to the same period in 2002, as the considerable success
enjoyed by bmibaby in its first year of operations from the airport has more
than made up for the loss of full service operations. Excluding ad hoc charters
relating to specific sporting events, it is gratifying that charter passenger
numbers at Cardiff International remained in line with the equivalent period in
2002. Like Belfast, Cardiff International has had an increased funding rate for
its defined benefit staff pension scheme, which has been closed to new members.
bmibaby's success at Cardiff International has helped us accelerate our plans to
develop a new hotel and leisure complex on the business park next to the
airport. We have now secured planning consent for a 150-room hotel and are in
the process of selecting a partner with whom to operate the hotel. This
development will also include 400 additional car parking spaces, to complement
the enhanced terminal facilities at the airport.
Stockholm Skavsta
Overall traffic at Stockholm Skavsta rose by 250% to 592,000 passengers during
this period, reflecting the establishment of Ryanair's base at the airport from
the beginning of last April. To support this growth in traffic, new terminal
facilities are being developed, with work progressing according to schedule, and
the new facilities due to open on 1 April 2004.
Some of the intra-Scandinavian routes have, for a variety of reasons, struggled
to attract sufficient passengers and we are working with our airline customer to
ensure that alterations to schedules and routes are as successful as possible.
Whilst there is an inevitable short term impact on profitability from the costs
associated with this development work, we are confident that it will allow
further significant growth in passengers at this well-situated airport. In the
meantime, our local management team remains committed to delivering the best
possible service to all our customers and has been augmented during this
challenging period by senior management from elsewhere within the Group.
Other activities
We have successfully contained the Group's central overhead costs and have made
good progress in implementing a number of other commercial ventures. In
particular, group-wide deals with our retailing and our foreign exchange bureau
partners, SSP and Travelex, are proving successful.
Our airport services business in North America, Airport Group International,
continued to struggle in the consistently tough environment to deliver
satisfactory results. In the light of the ongoing challenges facing this
business, we have decided to write down the carrying value by some #6.2 million
to approximately #11.0 million.
In an effort to maximise all possible revenue sources from our core portfolio,
tenders have also been invited for the management of car parking at our three UK
airports. These contracts will begin in April 2004 and will allow us to increase
our focus on our principal business, that of running airport operations.
Outside our core airport portfolio, we saw some recovery in passenger numbers,
particularly in domestic traffic, at Orlando Sanford and a slight increase in
passenger numbers at our airports in Bolivia. Elsewhere, our hotel in Cardiff
enjoyed improved profitability driven by increased occupancy and increased room
rates. It also was recognised by Hilton as being their top hotel for service in
the UK.
SERAS
The Board of TBI has been pushing hard to ensure fair recognition for the growth
potential of London Luton Airport in the Government's review of airport capacity
in the South East of England ("SERAS"). A full copy of our submission can be
found on our website (www.tbiplc.aero).
In summary, while we are not necessarily seeking new runways, we are seeking
better utilisation of our existing capacity, and to have that theoretical
capacity of around 31.0 million passengers per annum, compared with the current
passenger throughput of around 7.0 million, formally reflected within the
planning framework.
Whatever the conclusions of the Government's review, it is clear that new
capacity cannot be added in the South East immediately. In summary, we have a
well-located asset in London Luton, which has significant capacity for traffic
increases today, without the need for a further runway. We believe that London
Luton can do more and we have demonstrated to Government that it can play an
integral part in the overall solution to deliver airport capacity for the South
East region. It is for Government to recognise that significant contribution in
the forthcoming White Paper.
Current trading and outlook
The past six months has been a challenging period for the entire aviation
industry, but against a difficult backdrop we are pleased by the significant
progress that the Group has made in adapting its business by investing in the
quality of terminal facilities that will attract ever more customers, encourage
airlines to develop their operations with us and attract other low cost carriers
to our airports.
Growth of low cost airline traffic continues and we are well placed to meet the
demands of that growth. Each of our airports has the runway capacity to handle
additional passengers without incremental capital expenditure. In London Luton
we have an airport that is currently better placed to accommodate rising
passenger numbers in the South East than any competing airport, while Belfast
and Cardiff have successfully adapted to the low cost model and are experiencing
significant traffic growth. Together with the newly enhanced terminal facilities
at Stockholm Skavsta, we have a portfolio of assets to be proud of and view our
future prospects with considerable confidence.
Consolidated profit and loss account
For the six months ended 30 September 2003
Audited Unaudited Unaudited
Year to Six months to Six months to
31 March 30 September 30 September
2003 Notes 2003 2002
#'000 #'000 #'000
177,618 Turnover 2.1 103,495 99,690
(24,417) Cost of sales (12,557) (12,260)
153,201 Gross profit 90,938 87,430
(129,563) Administrative expenses (76,418) (64,342)
47,268 Operating profit before depreciation, 2.2 32,537 33,898
amortisation and exceptional items
(13,045) Depreciation (6,955) (6,294)
(8,280) Amortisation - normal (4,224) (4,162)
- - exceptional 3 (6,187) -
(2,305) Exceptional items - other 2.4 (651) (354)
23,638 Operating profit 2.3 14,520 23,088
(1,000) Additional cost on disposal of property business - (1,000)
(12,481) Net interest payable 4 (7,304) (7,062)
10,157 Profit on ordinary activities before tax 7,216 15,026
(3,953) Tax on profit on ordinary activities 5 (6,047) (5,796)
6,204 Profit on ordinary activities after tax 1,169 9,230
(1,606) Equity minority interests (1,133) (1,723)
4,598 Profit for the financial period 36 7,507
(12,854) Dividends 6 (3,912) (3,912)
(8,256) Retained (loss)/profit for the period (3,876) 3,595
0.82p Earnings per share 7 0.01p 1.34p
0.82p Diluted earnings per share 7 0.01p 1.34p
2.86p Earnings per share before amortisation and 7 2.13p 2.52p
exceptional items
The turnover and operating profit shown above are derived from continuing
operations.
Consolidated balance sheet
30 September 2003
Audited Unaudited Unaudited
31 March 30 September 30 September
2003 Notes 2003 2002
#'000 #'000 #'000
Fixed assets
133,059 Goodwill 121,477 136,641
11,364 Other intangible assets 10,423 11,734
144,423 Intangible assets 131,900 148,375
217,877 Tangible assets 226,269 213,767
135,077 Investment properties 135,585 123,092
1,676 Trade investments 1,936 1,471
499,053 495,690 486,705
Current assets
1,243 Stock 1,289 1,169
28,914 Debtors 35,856 34,530
27,768 Cash at bank and in hand 8 34,684 49,038
57,925 71,829 84,737
Current liabilities
(63,433) Creditors - amounts falling due within one year 9 (70,584) (69,092)
(5,508) Net current assets/(liabilities) 1,245 15,645
493,545 Total assets less current liabilities 496,935 502,350
(170,387) Creditors - amounts falling due after more than one 10 (172,691) (176,117)
year
(4,638) Accruals and deferred income (4,581) (2,718)
(17,889) Provisions for liabilities and charges (21,358) (21,015)
300,631 Net assets 298,305 302,500
Capital and reserves
55,889 Called up share capital 55,889 55,889
166,611 Share premium account 166,611 166,611
49,634 Capital reserve 15 4,591 49,634
15,959 Revaluation reserve 15,959 7,137
13,800 Profit and loss account 15 55,384 24,374
301,893 Equity shareholders' funds 14 298,434 303,645
(1,262) Equity minority interests (129) (1,145)
300,631 Capital employed 298,305 302,500
Consolidated cash flow statement
For the six months ended 30 September 2003
Audited Notes Unaudited Unaudited
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
42,915 Net cash inflow from operating activities 11 32,034 23,782
Returns on investments and servicing of finance
1,155 Interest received 333 618
(11,336) Interest paid (6,804) (5,969)
(390) Interest element of finance lease and hire purchase (283) (198)
repayments
(10,571) Net cash outflow from returns on investments and servicing of (6,754) (5,549)
finance
(161) Tax (272) 1,088
Capital expenditure and financial investment
(12,002) Additions to tangible fixed assets (10,852) (3,267)
(4,911) Additions to investment properties (1,383) (1,648)
259 Sale of tangible fixed assets 86 108
(16,654) Net cash outflow for capital expenditure and financial (12,149) (4,807)
investment
Acquisitions and disposals
(561) Purchase of trade investments (346) (346)
(378) Other acquisitions (70) -
(939) Net cash outflow for acquisitions and disposals (416) (346)
(12,854) Equity dividends paid - -
Management of liquid resources
4,607 Cash withdrawn from/(placed on) deposit 7,018 (19,536)
92 Sale of US securities 247 5,404
4,699 Net cash inflow/(outflow) from management of liquid resources 7,265 (14,132)
Financing
3,546 Bank loans drawn down 79,139 4,444
(27,767) Repayment of bank loans (83,036) (21,218)
(2,572) Capital element of finance lease and hire purchase repayments (1,141) (1,267)
19,000 Proceeds from loan note - 19,000
(7,793) Net cash (outflow)/inflow from financing (5,038) 959
(1,358) Increase/(decrease) in cash in the period 12 14,670 995
Consolidated statement of total recognised gains and losses
For the six months ended 30 September 2003
Audited Unaudited Unaudited
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
4,598 Profit for the financial period 36 7,507
3,379 Exchange differences on overseas investments 417 2,102
8,822 Unrealised deficit on revaluation of investment properties - -
16,799 Total gain recognised in the period 453 9,609
Notes
1. Basis of preparation
The interim report and accounts have been prepared on the basis of accounting
policies consistent with those set out in the Annual Report and Accounts for the
year ended 31 March 2003.
The interim report and accounts are unaudited but have been formally reviewed by
the auditors. The information shown for the year ended 31 March 2003 does not
constitute full financial statements within the meaning of Section 240 of the
Companies Act 1985 and has been extracted from the full financial statements for
the year ended 31 March 2003 filed with the Registrar of Companies. The report
of the auditors on these accounts was unqualified and did not contain a
statement under section 237(2) or section 237(3) of the Companies Act 1985.
2. Segmental information
In the segmental information provided below, Airport Ownership relates to
airports which are either owned or operated under long term agreements.
Turnover is derived from third parties.
2.1. Turnover is analysed as follows:
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
76,531 Airport Ownership Traffic income 46,066 45,638
48,453 Commercial income 30,792 27,760
12,565 Tenant income 6,545 6,101
26,271 Airport Services 13,028 13,441
4,686 Airport Management 2,391 2,358
168,506 Total airports 98,822 95,298
9,112 Other operations 4,673 4,392
177,618 Turnover from all operations 103,495 99,690
2.2. Operating profit before depreciation, amortisation and exceptional
items is analysed as follows:
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
45,821 Airport Ownership 31,669 33,453
794 Airport Services 166 274
2,861 Airport Management 1,498 1,472
49,476 Total airports 33,333 35,199
2,379 Other operations 1,272 1,051
(4,587) Head office costs (2,068) (2,352)
47,268 Operating profit before depreciation, amortisation 32,537 33,898
and exceptional items
Notes (cont'd)
2. Segmental information (cont'd)
2.3 Operating profit is analysed as follows:
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
29,818 Airports 22,916 25,390
959 Other operations 626 527
(4,834) Head office costs (2,184) (2,475)
- Amortisation - exceptional (6,187) -
(2,305) Exceptional items - other (651) (354)
23,638 Operating profit 14,520 23,088
2.4 These exceptional items are analysed as follows:
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
(282) Litigation costs relating to discontinued operations (250) (250)
and periods prior to acquisition by the Group
(1,058) Reorganisation costs (401) (104)
(965) Staff benefits - -
(2,305) (651) (354)
3. Amortisation - exceptional
During the period, the directors have reviewed the carrying value of the Group's
Airport Services business given the lack of recovery in this market sector post
11 September 2001. As a result of this review and in accordance with FRS 11,
the directors have written down the carrying value of the goodwill attributable
to this business by US$10.0 million (#6.2 million).
4. Net interest payable
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
11,057 Interest payable on bank and similar loans 5,193 5,721
390 Interest on finance lease and hire purchase 283 198
arrangements
396 Bank charges 137 219
479 Amortisation of debt issue costs 247 239
(1,448) Interest receivable (361) (922)
- Interest swap break cost - exceptional 1,805 -
1,607 Forgiveness of accrued interest receivable - - 1,607
exceptional
12,481 Total 7,304 7,062
4. Net interest payable (cont'd)
The Group has completed a refinancing of the project finance debt at London
Luton with a repayment and cancellation of the previous facility. Part of the
interest rate swap attached to the previous facility has also been cancelled
resulting in a termination penalty of #1.8 million after the release of a fair
value provision of #2.5 million.
5. Tax
The tax charge has been derived by applying the anticipated effective rate of
tax for the year ending 31 March 2004 to the results for the six months to 30
September 2003.
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
2,313 Corporation tax 1,690 996
1,640 Deferred tax 4,357 4,800
3,953 Total 6,047 5,796
For the six months to 30 September 2003, the tax charge is high in relation to
the profit before tax principally because no tax relief is available for the
exceptional goodwill amortisation which arose in this period.
Notes (cont'd)
6. Dividends
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
3,912 Interim proposed (0.70 pence) 3,912 3,912
8,942 Final paid (1.60 pence) - -
12,854 3,912 3,912
The interim dividend proposed in respect of the year ending 31 March 2004 will
be payable on 2 January 2004 to shareholders on the register on 5 December 2003.
The final dividend for the year ended 31 March 2003 was paid on 1 October 2003.
7. Earnings per share
Earnings per share have been calculated in accordance with FRS 14, 'earnings per
share', for all periods by dividing the profit for the period by the weighted
average number of ordinary shares in issue during the period, based on the
following information:
Year to Six months to Six months to
31 March 2003 30 September 30 September
2003 2002
4,598 Profit attributable to shareholders (#'000) 36 7,507
15,995 Earnings before amortisation and exceptional items 11,889 14,102
(#'000)
559 Basic weighted average share capital (number of 559 559
shares, million)
559 Diluted weighted average share capital (number of 559 560
shares, million)
The difference between the basic and the diluted weighted average share capital
is wholly attributable to outstanding share options.
The calculation of earnings per share before amortisation and exceptional items
is based on the following analysis:
Year to Six months to Six months to
31 March 2003 30 September 30 September
2003 2002
#'000 #'000 #'000
4,598 Profit for the financial period 36 7,507
8,280 Amortisation - normal 4,224 4,162
- - exceptional 6,187 -
2,305 Exceptional items - other 651 354
- Interest swap break cost 1,805 -
1,000 Additional cost on disposal of property business - 1,000
1,607 Forgiveness of accrued interest receivable - 1,607
(1,795) Effect of tax and equity minority interests on (1,014) (528)
above adjustments
15,995 11,889 14,102
Notes (cont'd)
8. Cash at bank and in hand
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
2,676 Cash 17,195 5,040
25,092 Other bank deposits 17,489 43,998
27,768 34,684 49,038
Included within cash are amounts of:
* #0.4 million which resides in the accounts of a UK subsidiary company and
over which there are restrictions as to the transferability to other Group
companies
Included within other bank deposits are amounts of:
* #3.9 million (US$6.5 million) which a US subsidiary company is required,
under the terms of the US Bonds, to retain as restricted deposits to meet
specified future operating costs and debt service
9. Creditors - amounts falling due within one year
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
7,272 Bank loans 1,907 7,841
680 US Industrial Development Revenue Bonds - Series 1995 711 754
574 Other loans 637 -
16,342 Trade creditors 23,349 18,204
4,742 Corporation tax 5,996 5,218
1,180 Other tax and social security 1,549 2,059
1,773 Amounts due under finance lease and hire purchase 2,327 2,062
arrangements
4,069 Other creditors 4,787 4,408
17,859 Accruals and deferred income 16,467 15,692
8,942 Dividends payable 12,854 12,854
63,433 70,584 69,092
Notes (cont'd)
10. Creditors - amounts falling due after more than one year
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
132,329 Bank loans 133,754 137,418
17,769 US Industrial Development Revenue Bonds - Series 1995 16,010 17,785
12,201 Other loans 11,754 12,786
4,282 Amounts due under finance lease and hire purchase 8,098 4,763
arrangements
3,806 Other creditors 3,075 3,365
170,387 172,691 176,117
11. Reconciliation of operating profit to net cash inflow from operating
activities
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
23,638 Operating profit 14,520 23,088
13,045 Depreciation 6,955 6,294
8,280 Amortisation 10,411 4,162
(308) Release of deferred income (158) (77)
(224) Increase in stock (53) (159)
(5,548) Increase in debtors (7,522) (11,612)
4,032 Increase in creditors and provisions 7,881 2,086
42,915 Net cash inflow from operating activities 32,034 23,782
12. Reconciliation of net cash flow to movement in net debt
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
(1,358) Increase/(decrease) in cash in the period 14,670 995
7,793 Cash outflow/(inflow) from movement in debt, finance 5,038 (959)
lease and hire purchase arrangements
6,435 Decrease in net debt resulting from cashflows 19,708 36
(4,699) Movements in other bank deposits during the period (7,265) 14,132
(945) New finance lease and hire purchase arrangements (5,513) (407)
(1,000) Discount on redemption of loan note - (1,000)
(477) Other non-cash items (245) (239)
(2,422) Non-cash items (5,758) (1,646)
4,204 Exchange movements 1,913 5,737
3,518 Movement in net debt during the period 8,598 18,259
(152,630) Net debt at the beginning of the period (149,112) (152,630)
(149,112) Net debt at the end of the period (140,514) (134,371)
Notes (cont'd)
13. Analysis of net debt
Cash Loan note Other bank Sub total Debt due Debt due Finance lease Total
receivable deposits within one after one and hire
year year purchase
arrangements
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
At 31 March 2003 2,676 - 25,092 27,768 (8,526) (162,299) (6,055) (149,112)
Cashflow 14,670 - (7,265) 7,405 (1,081) 4,978 1,141 12,443
Non-cash changes - - - - 6,261 (6,506) (5,513) (5,758)
Exchange movements (151) - (338) (489) 91 2,309 2 1,913
At 30 September 2003 17,195 - 17,489 34,684 (3,255) (161,518) (10,425) (140,514)
At 31March 2002 4,478 20,000 30,703 55,181 (9,074) (191,032) (7,705) (152,630)
Cashflow 995 (19,000) 14,132 (3,873) 5,809 10,965 1,267 14,168
Non-cash changes - (1,000) - (1,000) (5,560) 5,321 (407) (1,646)
Exchange movements (433) - (837) (1,270) 230 6,757 20 5,737
At 30 September 2002 5,040 - 43,998 49,038 (8,595) (167,989) (6,825) (134,371)
At 31 March 2002 4,478 20,000 30,703 55,181 (9,074) (191,032) (7,705) (152,630)
Cashflow (1,358) (19,000) (4,699) (25,057) 10,689 13,532 2,572 1,736
Non-cash changes - (1,000) - (1,000) (10,264) 9,787 (945) (2,422)
Exchange movements (444) - (912) (1,356) 123 5,414 23 4,204
At 31 March 2003 2,676 - 25,092 27,768 (8,526) (162,299) (6,055) (149,112)
Notes (cont'd)
14. Reconciliation of movement in equity shareholders' funds
Year to Six months to Six months to
31 March 2003 30 September 30 September
#'000 2003 2002
#'000 #'000
4,598 Profit attributable to shareholders 36 7,507
(12,854) Dividends (3,912) (3,912)
(8,256)Retained (loss)/profit for the period (3,876) 3,595
8,822 Surplus on revaluation of investment properties - -
3,379 Exchange differences on overseas investments 417 2,102
3,945 Net (reduction in)/addition to equity shareholders' (3,459) 5,697
funds
297,948 Opening equity shareholders' funds 301,893 297,948
301,893 Closing equity shareholders' funds 298,434 303,645
15. Capital reserve and profit and loss account
During the period, the directors have reviewed the Group's capital reserve and
have transferred some #45.0 million of distributable reserves from the capital
reserve to the profit and loss account. This transfer is due to certain
historic merger reserves becoming distributable as a result of the disposal of
the Group's property business in 1999.
16. Contingent liabilities
The Group had the following contingent liabilities as at 30 September 2003:
* The Group guaranteed the performance of a company in Costa Rica,
in which the Group own 10% of the issued share capital, under the
terms of certain bank loan arrangements amounting to #0.7million
(US$1.1 million)
* The Group guaranteed the performance of a company in Costa Rica, in
which the Group owns 10% of the issued share capital, under the
terms of certain obligations amounting to #0.8 million
(US$1.4 million)
The Group is dealing with a small number of legal claims, the aggregate value of
which has been estimated at some #10.0 million. The directors have reviewed all
of these claims and, on the basis of legal advice received, believe that
exposure to future losses is unlikely.
Additional financial information
Year to Six months to Six months to
31 March 30 September 30 September
2003 2003 2002
#'000 #'000 #'000
Operating profit before depreciation,
amortisation and exceptional items
21,305 London Luton 13,568 14,494
10,015 Belfast International 7,610 7,211
10,896 Cardiff International 7,714 8,083
778 Orlando Sanford 1,880 1,548
(376) Stockholm Skavsta (656) 166
3,203 Bolivia 1,553 1,951
794 Airport Services 166 274
1,174 Airport Management - North America 489 636
1,364 856 670
323 153 166
- London Luton
- Costa Rica
49,476 Total - airports division 33,333 35,199
2,379 Other operations 1,272 1,051
(4,587) Head office (2,068) (2,352)
47,268 Operating profit before depreciation, 32,537 33,898
amortisation and exceptional items
(13,045) Depreciation (6,955) (6,294)
(8,280) Amortisation - normal (4,224) (4,162)
- - exceptional (6,187) -
(2,305) Exceptional items - other (651) (354)
23,638 Operating profit 14,520 23,088
(1,000) Additional cost on disposal of property - (1,000)
business
(10,874) Net interest payable - normal (5,499) (5,455)
(1,607) - exceptional (1,805) (1,607)
10,157 Profit on ordinary activities before tax 7,216 15,026
(3,953) Tax on profit on ordinary activities (6,047) (5,796)
6,204 Profit on ordinary activities after tax 1,169 9,230
(1,606) Equity minority interests (1,133) (1,723)
4,598 Profit for the financial period 36 7,507
15,995 Profit attributable to shareholders before 11,889 14,102
amortisation and exceptional items (Note 7)
2.86p Earnings per share attributable to shareholders 2.13p 2.52p
before amortisation and exceptional items
Corporate operational information
Airport ownership with a controlling interest
Six months Six months Six months Six months Six months Six months
30 Sept 30 Sept 30 Sept 2003 30 Sept 30 Sept 2003 30 Sept
2003 2002 2002 2002
London Luton Belfast International Cardiff International
Airport Airport Airport
Total passengers ('000)
Charter 648 765 642 537 687 702
Full service 400 309 3 228 102 144
Low cost 2,763 2,565 1,575 1,272 425 39
Transit 13 10 18 21 13 4
Total 3,824 3,649 2,238 2,058 1,227 889
Terminal Passengers
Spend per head #3.81 #3.93 #2.35 #2.25 #3.21 #3.01
Net passenger supplement per #3.20 #3.22 #2.63 #2.89 #4.27 #6.17
head
Total #7.01 #7.15 #4.98 #5.14 #7.48 #9.18
Charter
Number of tour operators 26 24 21 19 37 36
Number of seats offered 750 875 708 604 749 756
('000)
New charter destinations 1 1 1 1 1 3
Full service
Number of major airlines 5 5 1 2 2 4
Number of seats offered 511 420 7 309 220 260
('000)
Low cost
Number of major airlines 3 2 3 2 2 1
Number of seats offered 3,448 3,180 2,044 1,694 603 50
('000)
Freight tonnage 11,914 11,022 21,826 22,634 1,774 1,170
Some of the services from London Luton Airport
Amsterdam, Barcelona, Belfast, Dublin, Edinburgh, Geneva, Glasgow, Malaga, Nice
and Paris.
Some of the services from Belfast International Airport
Amsterdam, Birmingham, Bristol, Cardiff, East Midlands, Edinburgh, Liverpool,
London Gatwick, London Luton and London Stansted.
Some of the services from Cardiff International Airport
Alicante, Amsterdam, Belfast, Dublin, Edinburgh, Geneva, Milan, Palma, Paris and
Toulouse.
Airport ownership with a controlling interest, shown above, relates to airports
which are either owned or operated under long term agreements.
Corporate operational information
Airport ownership with a controlling interest (continued)
Six months Six months Six months Six months Six months Six months
30 Sept 30 Sept 30 Sept 2003 30 Sept 30 Sept 2003 30 Sept
2003 2002 2002 2002
Orlando Sanford Stockholm Skavsta Airport Bolivian Airports
Total passengers ('000)
Charter 595 662 - - - -
Full service - - - 10 1,046 973
Low cost 215 116 589 155 - -
Transit 2 48 3 4 210 150
Total 812 826 592 169 1,256 1,123
Terminal Passengers
Spend per head #3.62 #3.45 #1.80 #1.88 #1.17 #1.36
Net passenger supplement per #1.19 #1.06 #1.17 #1.09 #2.21 #2.40
head
Total #4.81 #4.51 #2.97 #2.97 #3.38 #3.76
Charter
Number of tour operators 20 25 - - - -
Number of seats offered 670 828 - - - -
('000)
New charter destinations 1 10 - - - -
Full service
Number of major airlines - - - 2 9 9
Number of seats offered - - - 44 1,745 1,794
('000)
Low cost
Number of major airlines 3 1 2 2 - -
Number of seats offered 330 242 882 205 - -
('000)
Freight tonnage 4,202 4,205 4,268 7,033 2,338 2,710
Some of the services from Orlando Sanford
Allentown, Birmingham, Glasgow, London Gatwick, Manchester, Newburgh, Newcastle,
Portsmouth, San Juan and Syracuse.
Some of the services from Stockholm Skavsta Airport
Aarhus, Brussels, Frankfurt, Glasgow, Hamburg, London Stansted, Oslo, Paris,
Tampere and Visby.
Some of the services from the Bolivian Airports
Asuncion, Bogota, Caracas, Ezeisa, Guarullos, Lima, Mexico, Miami, Padahuel and
Paris.
Airport ownership with a controlling interest, shown above, relates to airports
which are either owned or operated under long term agreements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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