Notice to Noteholders

Gatwick Funding Limited

21 March 2024

 

Gatwick Funding Limited
21 March 2024

Issuer: Gatwick Funding Limited
Date: 21 March 2024

Gatwick Funding Limited (the "Issuer")
a company incorporated in Jersey (registered number 107376)

Annual results publication - Ivy Holdco Limited

The Issuer's parent, Ivy Holdco Limited, today publishes its Annual Report and consolidated financial statements for the year ended 31 December 2023.

The Ivy Holdco Limited report and financial statements consolidate the results of Ivy Holdco Limited, the Issuer, Ivy Bidco Limited and Gatwick Airport Limited. These financial statements and a related investor presentation are available on the Gatwick Airport Limited website at www.gatwickairport.com/investor

London Gatwick financial results for year ending 31 December 2023

Continued recovery of traffic drives strong financial performance

·    Traffic boosted by a string of new airlines and destinations at the start of summer 2023.

·    Redeveloped train station is the first significant project to be delivered from a £2.2 billion, six-year, programme of infrastructure improvements.

·    Airport awarded internationally recognised accreditation for plans to reduce emissions in line with global climate goals.

·    Strong leadership role taken to improve air traffic control resilience and provide reliable timetables for passengers in 2024.

·    Examination of Northern Runway planning application is underway. 

The continued recovery of traffic and the careful balancing of operating costs drove London Gatwick's strong financial performance in 2023, the airport said today when publishing its 2023 financial results.

In particular, a string of new airlines and services to new destinations at the start of a busy summer season contributed to the increase in traffic.  Recovery peaked - reaching 94% of 2019 levels - in July and October.

2023 results include:

·    40.9 million passengers passed through the airport by year end - up 24.7% on 2022 - with passenger demand at 88% of pre-pandemic levels for the year.

·    Revenue at £1,015.1 million (+30.7%), driven by the continued recovery in passenger numbers.

·    Revenue includes aeronautical income at £545.7 million (34.5%), retail income of £207.7 million (+30.9%) and car parking income of £132.8 million (+30.7%). 

·    Profit for the period at £314.8 million (+69.9%), with EBITDA at £617.7 million (+38.4%).  

Growing network of airlines and destinations

Passengers can currently choose from 56 airlines flying to 220 destinations.  This includes 169 short-haul destinations across a large European network and 51 long-haul routes.  New long-haul airlines flying from the airport in 2023 included Air India, Delta, Saudia, Air Mauritius, Ethiopian Airlines and China Southern.  This summer, 85 long-haul services will fly to Asia each week, including 26 to China. 

Improved levels of service for passengers

During the overall successful year, the airport hit 99% of all measured service level requirements, supported by hard work of frontline colleagues.  For example, the successful recruitment of 200 new security officers ahead of summer helped get 97% of passengers through security in under five minutes.  Significant investment will also enhance the process with Next Generation Security screening equipment currently being installed across both airport terminals due for full operation by Q1 2025, after the busy summer peak. 

The airport however acknowledges that it was regrettable that disruption did occur in the airport's control tower towards the end of the 2023 summer season.  The airport took a strong leadership position and facilitated closer collaboration between airport partners to provide more reliable timetables for passengers.  Air traffic control provider, NATS, has since provided assurances and implemented significant changes to ensure reliable schedules in 2024.

Investing in sustainable growth

A fully redeveloped Gatwick train station opened in November 2023 and was the first significant project in a series of infrastructure improvements due to be completed.  A Rapid Exit Taxiway is now also improving resilience by reducing runway occupancy and aircraft taxi times.   Additionally, a redeveloped North Terminal departure lounge and a 3,250 space multi storey car park are due to complete this year (2024).

The airport's new six-year Capital Investment Program was published in 2023 and includes a £250 million-plus commitment to become a net zero airport by 2030 for Scope 1 and 2 emissions.

London Gatwick's planning application (Development Consent Order) to bring its existing Northern Runway into routine use, alongside its Main Runway, is currently being scrutinised in detail by a panel of independent inspectors. A successful application would deliver additional resilience and capacity, in line with Government policy, while also generating around 14,000 new jobs and £1 billion for the region's economy every year. 

Sustainability continues to evolve

In 2023, the airport achieved Level 4+ 'Transition' of the internationally recognised Airport Carbon Accreditation scheme - demonstrating London Gatwick's commitment to reduce its direct emissions, and to driving third parties on the airport to reduce their emissions, in line with global climate goals.

Separately, London Gatwick today increased its reporting of Scope 3 greenhouse gas emissions to enhance decision making and transparency. It is also exploring how a hydrogen eco-system might be created on campus to potentially reduce emissions from flights, alongside Sustainable Aviation Fuels.

Stewart Wingate, Chief Executive Officer, London Gatwick, said: "As ever, I want to thank every single colleague at London Gatwick for their hard work and contribution to our strong performance in 2023.  The airport's ongoing recovery was boosted by collaborative work with our airlines and partners and I'm proud that we continue to offer passengers a fantastic choice of airline and destination, whether flying short or long-haul.

"Combined, our strong performing airline, retail and other revenue streams means we can once again invest in substantial airport improvements.  Passengers will already have seen our fully redeveloped train station, new shops, bars and restaurants, and more exciting developments will complete over coming months and years.

"Longer term, our Northern Runway plans are at a critical stage in the process and we will continue putting forward our strong case.  Ensuring that all growth is achieved sustainably is of course an ongoing priority and we will keep demonstrating and evolving our commitment to reduce our environmental impacts, contribute positively to local communities and help the economy to thrive."

NOTES

1.    Other notable milestones in London Gatwick's sustainability journey in 2023, included:

·    Strengthening ten Decade of Change goals with ten roadmaps that clearly define the airport's ambition and key performance indicators for each goal.  Progress against these indicators can be seen in the 2023 Decade of Change performance report , which was published today.

·    Winning Airports Council International's Eco Innovation Award for Environmental Excellence

·    Opening Europe's first airport electric vehicle charging forecourt, with x30 chargers.

2.    In December, London Gatwick was awarded CAPA - Centre for Aviation's Large Airport of the Year - for its speedy post-pandemic recovery and innovative plans for the future.

About London Gatwick

London Gatwick is the UK's second largest airport and is a vital piece of national infrastructure that helps drive both the regional and national economy. More than 40 airlines fly from the airport to over 150 short-haul and more than 45 long-haul destinations. The airport is focused on rebuilding and growing sustainably in the long term. It has ambitious plans to be a net zero airport by 2030 and increase capacity by bringing its Northern runway into routine use.  Vinci Airports owns a 50.01% stake in the airport, with Global Infrastructure Partners managing the remaining 49.99% interest.

About VINCI Airports

The world's leading private airport operator, VINCI Airports operates more than 70 airports in 13 countries. Thanks to its expertise as a global integrator, VINCI Airports develops, finances, builds and manages airports by providing its investment capacity and its know-how in optimizing operational performance, modernizing infrastructure and managing their operations and environmental transition. VINCI Airports is the first airport operator to have committed to an international environmental strategy in 2016, to achieve the goal of net zero emissions across its entire network by 2050.

For more information:

www.vinci-airports.com

@VINCIAirports

https://www.linkedin.com/company/vinci-airports/

www.vinci-airports.com

@VINCIAirports

https://www.linkedin.com/company/vinci-airports/

About Global Infrastructure Partners

Global Infrastructure Partners (GIP) is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors. With decarbonization central to our investment thesis, we are well positioned to support the global energy transition. Headquartered in New York, GIP has offices in Brisbane, Dallas, Hong Kong, London, Melbourne, Mumbai, Singapore, Stamford and Sydney.

GIP has approximately $106 billion in assets under management. Our portfolio companies have combined annual revenues of approximately $75 billion and employ over 115,000 people. We believe that our focus on real infrastructure assets, combined with our deep proprietary origination network and comprehensive operational expertise, enables us to be responsible stewards of our investors' capital and to create positive economic impact for communities. For more information, visit www.global-infra.com.

 

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