Final Results
TBI PLC
25 June 2002
25 June 2002
TBI plc
Preliminary results for the year ended 31 March 2002
'EXCELLENT RESULTS IN A CHALLENGING YEAR'
Financial highlights 2002 2001
£m £m
EBITDA* 53.1 31.1 up 71%
Profit on ordinary activities before tax 16.6 13.2 up 26%
Earnings per share** 3.71p 2.67p up 39%
*Group operating profit before depreciation, amortisation and exceptional
items
**before normal amortisation (underlying amortisation charge excluding the
accelerated amortisation of negative goodwill) and exceptional items
Highlights
• Results demonstrate resilience of the business.
• Passenger numbers at TBI's UK airports up 7% to nearly 12m passengers,
despite effect of 11 September 2001.
• TBI's airports well positioned despite challenging market conditions.
• London Luton - markedly improved financial performance, earnings
enhancing during the first year of acquisition - higher passenger
numbers and landing fees and significant cost reductions.
• Belfast International - passenger numbers up 16% to 3.7m.
• Cardiff International - increase in profitability from similar passenger
numbers to previous year.
• Board strengthened further with the appointment of Larry Gouldthorpe.
Commenting on prospects, Keith Brooks, Chief Executive said:
'This year's excellent results demonstrate that our business has been able to
withstand substantial market pressures, and importantly is able to adapt to
change. These features remain and will, I believe, stand us in good stead for
the future. 2001 was in many ways a watershed for the aviation industry, and the
beginning of a different dynamic in air travel.
We have a very strong portfolio of regional airports and related businesses, an
excellent management team and a track record of acquiring and turning around and
improving under-performing assets. I see the coming year as a period of
relative consolidation followed by a very bright and encouraging future in the
years beyond.'
Enquiries:
TBI Today on 020 7466 5000
Keith Brooks/ Caroline Price thereafter 020 7408 7300
Buchanan Communications
Charles Ryland / Nicola Cronk 020 7466 5000
Overview
For any business connected with aviation the last year was dramatic, but for TBI
the happenings and consequences of 11 September 2001 were straddled by an
attempted hostile takeover and the loss of two major customers from our airport
in Belfast. In November, we wrote to shareholders to explain the immediate
consequences of those events and the prospects for TBI. The main thrust of our
message was that our business was well positioned to withstand such challenges
and changes to our market, and so it has proved. Passenger numbers at our UK
airports (which account for the lion's share of our business) have grown by 7%.
Of particular note is the 16% growth in passenger numbers at Belfast
International, which during the year lost wholly or in part the services of two
flag carrier airlines. That phenomenon illustrates a feature common to our UK
airports: that they are in good locations with strong established inherent
demand for air travel from their catchment area populations. In such
circumstances, the withdrawal or reduction of services by one airline is much
more likely to be replaced or indeed increased by another. The transition may
not always be seamless, but as in other areas of business the market normally
adjusts to the right supply and demand equation. TBI airports, particularly
those in the UK, are scarce resources and are part of a restricted airport
supply compared with an ever increasing demand for air travel. Furthermore, the
absence of any capacity constraints, and the unregulated nature of these
businesses, distinguishes them from many other UK airports, and emphasises their
scarce nature.
The year's good financial results were significantly aided by the contribution
from our increased stake in Luton Airport. The Luton acquisition has revealed
all the usual TBI acquisition hallmarks: a sensible purchase price followed by
improvements in financial performance, efficiency and operational competence.
The potential of Luton as London's fourth airport is, of course, enormous.
Financials
We are extremely pleased to report that despite enduring the most challenging
year in TBI's history we have delivered an excellent set of results. EBITDA
increased by 71% to £53.1 million. Of course, the comparison is distorted by the
inclusion of the contribution of Luton Airport for the first time. However, an
earnings per share comparison before normal amortisation and exceptional items
(but including interest and depreciation) reveals an increase of 39% to 3.71p,
underlining the good performance by the Group as a whole and the earnings
enhancing nature of the Luton acquisition in particular.
In consequence, the Board is recommending a final dividend of 1.60 pence per
share, bringing the total dividend for the year to 2.30 pence per share. This
will be paid on 1 October 2002.
Board Changes
During the year, the Board was strengthened by the appointments of Paul Kehoe,
who is currently managing director of Luton Airport, and by Gareth Jones, who
was previously a main board director of Abbey National plc and the head of their
wholesale banking division. We are also pleased to announce that, with effect
from 1 July, Larry Gouldthorpe will also join the Board. Larry is based in
Orlando, Florida and is responsible for a large part of our North and South
American interests.
The promotion of two of our leading airport directors to the Board indicates the
considerable operational and management talent and experience apparent
throughout the Group. It also underlines the emphasis which the Board places on
safety, security and the management of risk.
Luton
A very good performance was achieved at Luton with an EBITDA contribution of
£20.4 million which bears out the potential we identified for this asset when we
acquired our controlling interest at the end of March 2001. The substantially
improved financial performance has been achieved through a combination of
increased turnover driven by increased passenger numbers and landing fees and a
significant reduction in related costs. Progress was seen in:
- Customer relationships
We inherited some strained relationships, particularly with the airport's
major customer, easyJet. However, tremendous efforts from the respective
airport and airline teams culminated in a new 20 year agreement with easyJet
with effect from 1 October 2001.
Further evidence of the better relationship is the new service to Paris (five
return flights daily), which commenced in June 2002 and which was the first new
easyJet route from Luton since 1999.
Our relationships with the charter operators have also improved and the
challenge is to ensure Luton enjoys a proper share of the market in the South
East of England. Our existing relationships with these airline customers, and
our reputation as an airport operator, undoubtedly helped the whole customer
relationship climate.
- Operational efficiency
Since we took control, operational efficiency has been substantially
improved, and has in turn helped our relationships with airlines. For example,
in the year before we achieved control, Luton closed three times as a result of
relatively light snowfall. Since we have operated the airport, the snow
management policy has ensured that in similar circumstances the airport suffered
no closures during the winter 2001/ 02.
- Cost base
A programme to reduce costs which was inherited from the previous management,
was developed and accelerated. The real key to this heading is productivity, and
staff are generally responding well to that theme and the increased
responsibility that accompanies it.
While Luton has enjoyed a good year, its full potential is still far from being
realised. It has as large and prosperous a catchment area as any airport in the
UK and good travel links to London. It is London's natural fourth airport, as
borne out by almost 7 million passengers who use the airport.
The challenge is for the UK government and its agencies to acknowledge the same
when attempting to resolve the massive disparity between predicted passenger
growth and the existing restricted runway capacity in South East England.
Belfast
On the face of it, Belfast was badly affected by events just before and after 11
September. In the event, however, passenger numbers increased by more than 16%
to 3.7 million. Nonetheless, the loss of British Airways and part of the British
Midland service to Heathrow did have a significant impact on profitability, with
EBITDA some £2.5 million down on that achieved in the previous year. Belfast
is, however, an excellent example of the changing dynamic in aviation: flag
carrier business being replaced and increased by low cost. Certainly, the
aeronautical revenue characteristics for the airport are different, so the key
to profitable growth is more passengers and increased passenger spend.
Belfast is well placed to achieve both. The massive growth in passengers to
Scotland, Liverpool and Luton has demonstrated the appetite to travel within the
UK.
We believe that there is a similar desire to fly to Europe, but currently only
one European destination is served from Belfast compared with fourteen from
Dublin. On the spending side plans are already underway to improve the range of
retail and catering facilities with a new Bar des Voyageurs, Heros pub, extended
Burger King and mini- shopping concourse.
We are also delighted to record that after a long process, planning has
eventually been granted to develop the large tract of land we own immediately
adjacent to the airport.
Cardiff
Another good year for Cardiff, which achieved a £0.5 million increase in EBITDA
from passenger numbers similar to the previous year's level of 1.5 million.
Whilst passenger numbers held up well generally, it was the charter side which
showed a slight reduction in numbers compared with a compensating increase on
the scheduled side. That adjustment illustrates a conundrum at Cardiff. In the
aftermath of 11 September, tour operators cut their capacity out of Cardiff even
though demand quickly recovered to previous levels. The scheduled side increased
despite a fare structure on the Scottish routes which, in our view, was not
attractive. It was not surprising therefore that services to Scotland were
recently withdrawn. Whilst the numbers were relatively small it demonstrates
that the travelling public votes with its feet.
Bolivia
A continued solid contribution from our three South American airports which, in
the face of challenging economic circumstances, improved EBITDA by 7% to £3.7
million. Total passenger numbers fell by 9%, the major reason being a reduction
in flights to the US following 11 September. The improved profitability was
achieved through a cost reduction programme, which included a streamlining and
rationalisation of management between the three airports. This year was a good
opportunity to achieve such streamlining, because the medium term outlook for
Bolivia and its three main airports looks promising. Certainly, the government
has signalled that the country's GDP should improve over the medium term. Their
belief is based on an emerging natural gas industry which is attracting massive
amounts of foreign investment in a country which is regarded as one of the most
politically stable in South America. This improved environment has coincided
with the ambitious expansion plans of the main Bolivian airline to include more
destinations into the attractive US market.
Orlando Sanford
It was a mixed year for this business. In common with other US airports, Sanford
was completely closed from 11 to 14 September and, soon after, British charter
operators, the mainstay of this business, announced capacity cuts to Sanford of
approximately 25%. While overall traffic numbers increased by 11%, charter
traffic originating from the UK reduced by 3% and this meant a year on year
reduction in EBITDA of £0.5 million. However, set in the context of results
achieved by other airports in the US this was certainly commendable - Sanford
was the fastest growing US airport handling over 1 million passengers last year.
This relatively good performance was achieved partly through the return of
Britannia Airlines in February 2002 (which means that all UK charters to Central
Florida now use Sanford) and partly through the significant growth in domestic,
non transit, traffic. The level of domestic traffic activity doubled in the
year to approximately 300,000 passengers and continues to grow; since the year
end, services to five new destinations have started or are soon to start.
However, as is usually the case, revenues from international traffic,
particularly passenger spend, are higher than those from a similar level of
domestic business. The charter cutbacks last year were therefore sorely felt,
and not even the rapid growth in domestic traffic could compensate. A similar
picture emerges for the current year, where long haul UK charter capacity to
Sanford remains at its lowest for some five years. That is frustrating because
the appetite for travel to Florida from the UK is returning more quickly than
many had anticipated when capacity levels were set in the winter of 2001.
It does indicate a very bright 2003/04 for Sanford, with international passenger
numbers expected to return to previous levels and indeed growing, running
alongside a fast growth in domestic passengers handled.
Stockholm Skavsta
A strong and improved end to the year for Skavsta with revenues almost matching
costs at EBITDA level was not enough to compensate for a difficult and
challenging first eight months. Passenger numbers for the year were almost the
same as the previous year despite 11 September, but the cargo business continued
to suffer until the end of December. A slow but continued increase in the levels
of cargo activity since then, coinciding with a substantial cost reduction
programme, were the reasons for the improved financial performance in the final
third of the year. The potential for this business with a long runway and good
terminal facilities is still apparent, compounded by the growth in low cost
carriers, and the market for such services in Europe and Scandinavia in
particular, which remains largely undeveloped. Indeed, in recent months Skavsta
has seen the introduction of 24 weekly services to Helsinki as well as three new
services to Gdansk in Poland and Riga in Latvia. A new daily service to Paris
has recently commenced.
Airport Services - AGI
This business proved to be resilient in the face of the adversity of 11
September. Despite the significant reduction in turnover compared with the
previous years, its EBITDA contribution increased by 7%. This was achieved as a
result of a margin improvement from 13% to 16%. This improved business base will
be built on as airlines increase flight activity to pre- 11 September levels.
AGI is well placed to achieve revenue growth and it is recognised as a leading
ground handler in the markets served, and is one of the leading authorities in
the industry for fuel farm management and into-plane fuelling.
Airport Management
In addition to the management function at four North American locations, this
division has Technical Services Agreements at Luton, where TBI also has a large
(more than 70%) equity stake, and at Juan Santamaria International Airport in
Costa Rica, where TBI has a small (10%) equity stake. The teams providing
services to the latter two airports, particularly Luton, have enabled this
division to post a sharp rise in EBITDA to some £2.7 million.
The contribution to that total made by the airports at Albany in New York State,
Burbank in California and the international terminals at Atlanta and Toronto is
supplemented by the profile and potential they provide for TBI in North America.
Hotel
This business made excellent progress this year and, in consequence, enjoyed a
good financial performance. The hotel's prime location and five star product
enabled it to gain significant market share. Proximity to the Millennium
Stadium has seen the hotel establish itself as the place to stay in Cardiff for
many leading sports teams and personalities, as well as stars from the
entertainment industry. However, it is its growing reputation with the corporate
market which is the primary reason for the increase in occupancy levels and
operating margin.
The Future
This year has demonstrated that our business is able to withstand substantial
market pressures and, importantly, is able to adapt to change. These features
remain and will, we believe, stand us in good stead for the future. 2001 was in
many ways a watershed for the aviation industry, and the beginning of a
different dynamic in air travel.
The shape of the airline industry, the way airlines operate and the way
passengers choose to travel have all changed. In our view, that is a process
which has only just started and which is set to continue for some time. The
challenge for airports in general, and TBI in particular, is not just to respond
to that change but to anticipate it. We already have such plans in hand. In the
short term, we believe that charter airlines and flag carriers will experience a
period of consolidation, while the low cost market will continue to grow, albeit
in the context of some rationalisation running in parallel with the emergence of
new airline entrants into that sector. In the medium term however we believe the
response and changed behaviour of charter airlines running alongside the
continued growth of low cost airlines will produce a substantial increase in air
travel and business for the airports used by those customers. TBI, with its
airline customer profile and airport locations, is particularly well placed to
take advantage of such trends. In short, we see the coming year as a period of
relative consolidation followed by a very bright and encouraging future in the
years following.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2002
Before
exceptional Exceptional
items items Total Restated
2002 2002 2002 2001
Notes £'000 £'000 £'000 £'000
Turnover: Group and share of joint 186,170 - 186,170 139,145
ventures
Less: share of joint ventures' turnover - - - (14,037)
Group turnover 1 186,170 - 186,170 125,108
Cost of sales (27,078) - (27,078) (29,670)
Gross profit 1 159,092 - 159,092 95,438
Administrative expenses (126,510) (9,225) (135,735) (74,127)
Group operating profit before
depreciation, amortisation and
exceptional items 1 53,061 - 53,061 31,076
Depreciation 1 (12,235) (5,743) (17,978) (5,558)
Amortisation of intangible assets 1 (8,244) 5,630 (2,614) (4,624)
Exceptional (charges)/ credits - (9,112) (9,112) 417
Group operating profit 1 32,582 (9,225) 23,357 21,311
Share of operating loss in joint ventures - - - ( 906)
Group operating profit 32,582 (9,225) 23,357 21,311
Share of operating profit in joint - - - 539
ventures before exceptional items
Operating profit before exceptional items 32,582 (9,225) 23,357 21,850
in joint ventures:
Group and share of joint ventures
Share of exceptional loss in joint - - - (1,445)
ventures
Total operating profit: Group and share 32,582 (9,225) 23,357 20,405
of joint ventures
Profit on sale of investments and joint 4,940 -
ventures
Net interest payable 2 (11,752) (7,228)
Profit on ordinary activities before tax 1 16,545 13,177
Tax on profit on ordinary activities 3 (6,397) (5,730)
Profit on ordinary activities after tax 10,148 7,447
Equity minority interests (1,909) -
Profit for the financial year 8,239 7,447
Dividends 4 (12,854) (11,686)
Retained loss for the year (4,615) (4,239)
Earnings per share 5 1.47p 1.46p
Diluted earnings per share 5 1.47p 1.46p
Earnings per share before normal
amortisation and exceptional items 5 3.71p 2.67p
The results shown above are derived from continuing operations.
2001 has been restated as a result of a change in the accounting policy for
deferred tax. In addition, exceptional items are now disclosed on the face of
the profit and loss account for the prior year, consistent with the treatment
adopted for the current year.
BALANCE SHEETS
FOR THE YEAR ENDED 31 MARCH 2002
Restated Restated
2002 2001 2002 2001
Group Group Company Company
£'000 £'000 £'000 £'000
Fixed assets
Goodwill 141,688 149,576 - -
Negative goodwill - (5,730) - -
Other intangible assets 13,140 13,747 - -
Intangible assets 154,828 157,593 - -
Tangible assets 214,520 225,273 536 691
Investment properties 123,283 127,682 1,050 -
Investments in joint ventures:
- share of gross assets - 4,296 - -
- share of gross liabilities - (3,086) - -
- 1,210 - -
Trade investments 1,232 22,568 - -
Investments in subsidiaries - - 216,844 126,844
Investments 1,232 23,778 216,844 126,844
493,863 534,326 218,430 127,535
Current assets
Stock 1,026 1,206 - -
Debtors 45,646 54,322 290,758 381,099
Cash at bank and in hand 35,181 27,646 10,479 11,282
81,853 83,174 301,237 392,381
Current liabilities
Creditors - amounts falling due within one year (61,068) (64,612) (98,628) (67,179)
Net current assets 20,785 18,562 202,609 325,202
Total assets less current liabilities 514,648 552,888 421,039 452,737
Creditors - amounts falling due after more than one (200,037) (231,717) (88,697) (115,236)
year
Accruals and deferred income (2,747) (2,694) - -
Provisions for liabilities and charges (16,784) (12,685) - -
Net assets 295,080 305,792 332,342 337,501
Capital and reserves
Called up share capital 55,889 55,889 55,889 55,889
Share premium account 166,611 166,611 166,611 166,611
Capital reserve 49,634 49,634 69,653 69,653
Revaluation reserve 7,137 14,681 - -
Profit and loss account 18,677 23,337 40,189 45,348
Equity shareholders' funds 297,948 310,152 332,342 337,501
Equity minority interests (2,868) (4,360) - -
Capital employed 295,080 305,792 332,342 337,501
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2002
2002 2002 2001 2001
£'000 £'000 £'000 £'000
Net cash inflow from operating activities 40,345 25,834
Returns on investments and servicing of finance
Interest received 3,802 3,417
Interest paid (13,629) (8,815)
Interest element of finance lease and hire purchase repayments (419) (540)
Net cash outflow from returns on investments and servicing
of finance (10,246) (5,938)
Tax (2,601) (1,085)
Capital expenditure and financial investment
Additions to tangible fixed assets (4,331) (11,206)
Sale of investment properties - 9,250
Additions to investment properties (3,215) (5,363)
Sale of tangible fixed assets 143 757
Grant received 101 1,922
Net cash outflow for capital expenditure and financial
investment (7,302) (4,640)
Acquisitions and disposals
Purchase of subsidiaries (including costs of acquisition) - (60,931)
Purchase of trade investments (1,232) -
Other acquisitions (451) (4,878)
Net cash acquired with subsidiaries - 65
Sale of trade investments and joint ventures 28,700 -
Net cash inflow/(outflow) for acquisitions and disposals 27,017 (65,744)
Equity dividends paid (12,041) (10,664)
Management of liquid resources
Cash placed on deposit (5,499) (8,518)
(Purchase)/sale of US securities (1,629) 2,231
Net cash outflow from management of liquid resources (7,128) (6,287)
Financing
Shares issued - 35,501
Bank loans drawn down 2,829 227,690
Repayment of bank loans (28,102) (189,640)
Capital element of finance lease and hire purchase repayments (2,355) (1,979)
Net cash (outflow)/inflow in respect of financing (27,628) 71,572
Increase in net cash in the year 416 3,048
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 MARCH 2002
Restated
2002 2001
£'000 £'000
Profit for the financial year 8,239 7,447
Unrealised (deficit)/surplus on revaluation of (7,544) 11,290
investment properties
Exchange differences on overseas investments (45) (2,748)
Total net gain for the year 650 15,989
Prior year adjustment - in respect of FRS 19 (5,034) -
- in respect of UITF 24 - (894)
Total (losses)/ gains recognised in the year (4,384) 15,095
NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2002
1. SEGMENTAL INFORMATION
Business analysis
In the segmental information provided below, Airport Ownership relates to
airports which are either owned or operated under long term agreements.
2002 2001
£'000 £'000
Group turnover
Airport Ownership Traffic income 82,659 54,995
Commercial income 49,856 16,914
Tenant income 12,296 9,430
Airport Services 30,230 32,355
Airport Management 3,838 3,125
Total airports 178,879 116,819
Other operations 7,291 8,289
186,170 125,108
Gross profit
Airport Ownership Traffic income 82,659 54,995
Commercial income 49,856 16,914
Tenant income 12,296 9,430
Airport Services 4,847 4,254
Airport Management 3,711 3,037
Total airports 153,369 88,630
Other operations 5,723 6,808
159,092 95,438
Group operating profit before depreciation, amortisation and exceptional
items
Airport Ownership 52,442 34,428
Airport Services 1,804 1,693
Airport Management 2,618 1,500
Total airports 56,864 37,621
Other operations 1,322 308
Head office costs (5,125) (6,853)
53,061 31,076
Depreciation
Airports - normal (10,937) (4,059)
- accelerated (5,743) -
Other operations (1,035) (1,000)
Head office costs (263) (499)
(17,978) (5,558)
Amortisation of intangible assets
Airports - normal (8,244) (4,624)
- accelerated 5,630 -
(2,614) (4,624)
Group operating profit
Airports 35,251 29,841
Other operations 287 (1,178)
Head office costs (12,181) (7,352)
23,357 21,311
1. SEGMENTAL INFORMATION (CONTINUED)
Business analysis (continued)
2002 2001
£'000 £'000
Profit on ordinary activities before tax
Airports 35,251 28,935
Other operations 287 (1,178)
Head office costs (12,181) (7,352)
Profit on sale of investments and joint ventures 4,940 -
Net interest (11,752) (7,228)
16,545 13,177
Restated
2002 2001
£'000 £'000
Net assets
Airports 427,496 466,142
Other operations 20,214 23,927
Net debt (152,630) (184,277)
295,080 305,792
Other operations include the hotel, aircraft and unallocated head office assets
and liabilities.
Geographical analysis (origin and destination)
2002 2001
£'000 £'000
Turnover United Kingdom 128,616 65,189
Rest of Europe 3,022 4,032
North America 42,665 43,562
South and Central America 11,789 11,614
Australasia 78 711
186,170 125,108
Profit before tax United Kingdom 19,956 17,261
Rest of Europe (1,815) (1,573)
North America 2,204 1,650
South and Central America 2,928 2,702
Australasia 5,024* 365
Net interest (11,752) (7,228)
16,545 13,177
* This includes the profit on sale of investments and joint
ventures.
Restated
2002 2001
£'000 £'000
Net assets United Kingdom 343,789 358,392
Rest of Europe 25,286 26,375
North America 68,474 74,106
South and Central America 10,161 7,417
Australasia - 23,779
Net debt (152,630) (184,277)
295,080 305,792
2. NET INTEREST PAYABLE
2002 2001
£'000 £'000
Interest payable and similar charges
Interest payable on bank and similar loans 13,256 8,747
Interest on finance lease and hire purchase arrangements 419 540
Bank charges 298 266
Group's share of joint ventures' interest charges - 1,334
Amortisation of debt issue costs 483 241
Write off of unamortised debt issue costs on bank facilities replaced by - 494
the new facilities in respect of the acquisition of London Luton Airport
Total 14,456 11,622
Interest receivable and similar income
Short term deposits and corporate bonds 1,272 1,983
Interest receivable from other investments 1,432 2,411
Total 2,704 4,394
Net interest payable 11,752 7,228
3. TAX
Restated
2002 2001
£'000 £'000
(a) Analysis of charge in the year
Current tax
UK corporation tax on profits of the year - 2,365
ACT written off in the year 236 -
Adjustments in respect of previous periods (639) (167)
Reclassification to deferred tax following the adoption of FRS 19 - (1,100)
(403) 1,098
Foreign tax 959 1,304
Total current tax (Note 3(b)) 556 2,402
Deferred tax
Origination and reversal of timing differences 5,841 2,710
Share of joint ventures - (482)
Reclassification from current tax following the adoption of FRS 19 - 1,100
Total deferred tax 5,841 3,328
Total tax on profit on ordinary activities 6,397 5,730
(b) Factors affecting the current tax charge for the year
The current tax assessed for the year is lower than the standard rate of
corporation tax in the UK of 30%. The differences are explained below:
Restated
2002 2001
£'000 £'000
Profit before tax 16,545 13,177
Profit multiplied by standard rate of corporation tax in the UK of 30% 4,964 3,953
(2001: 30%)
Effects of temporary differences between taxable and accounting profit:
Accelerated capital allowances (1,384) (1,745)
Other timing differences (174) (126)
Tax losses (5,823) (2,353)
ACT written off 236 -
Prior year credit (639) (1,267)
Permanent differences 3,329 3,855
Higher tax rates on overseas earnings 47 85
Current tax charge for year (Note 3 (a)) 556 2,402
4. DIVIDENDS
2002 2001 2002 2001
Pence per share Pence per share £'000 £'000
Interim dividend - paid 0.70 0.70 3,912 3,557
Final dividend - proposed 1.60 1.60 8,942 8,129
2.30 2.30 12,854 11,686
5. EARNINGS PER SHARE
Earnings per share have been calculated in accordance with FRS 14, 'earnings per
share', by dividing the profit for the financial year by the weighted average
number of ordinary shares in issue during the year, based on the following
information:
Restated
Year ended Year ended
31 March 31 March
2002 2001
Profit for the financial year (£'000) 8,239 7,447
Earnings before normal amortisation and exceptional items (£'000) 20,768 13,593
Basic weighted average share capital (number of shares, million) 559 509
Diluted weighted average share capital (number of shares, million) 560 510
The difference between the basic and the diluted weighted average number of
shares is wholly attributable to outstanding share options.
The calculation of earnings per share before normal amortisation and
exceptional items is based on the following analysis:
Restated
Year ended Year ended
31 March 31 March
2002 2001
£'000 £'000
Profit for the financial year 8,239 7,447
Exceptional items 4,285 1,522
Amortisation - normal (Note 1) 8,244 4,624
20,768 13,593
The earnings per share before normal amortisation and exceptional items has been
presented as the directors consider that this provides a more meaningful
indication of the Group's financial performance.
6. ANALYSIS OF NET DEBT
Cash Loan Other Sub Debt due Debt due Finance lease Total
note bank total within one after one and hire
receivable deposits year year purchase
arrangements
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 March 2001 4,063 20,000 23,583 47,646 (2,874) (222,050) (6,999) (184,277)
Cashflow 416 - 7,128 7,544 (1,921) 27,194 2,355 35,172
Non-cash changes - - - - ( 4,280) 3,797 (3,061) (3,544)
Exchange (1) - (8) (9) 1 27 - 19
movements
At 31 March 2002 4,478 20,000 30,703 55,181 (9,074) (191,032) (7,705) (152,630)
At 31 March 2000 936 20,000 12,516 33,452 (8,582) (95,170) (7,687) (77,987)
Cashflow 3,048 - 6,287 9,335 187,355 (225,405) 1,979 (26,736)
Acquisitions - - 4,200 4,200 - (79,038) - (74,838)
Non- cash changes - - - - (181,463) 180,727 (1,291) (2,027)
Exchange 79 - 580 659 (184) (3,164) - (2,689)
movements
At 31 March 2001 4,063 20,000 23,583 47,646 (2,874) (222,050) (6,999) (184,277)
The funding arrangements at London Luton Airport impose restrictions on the
transferability of net debt items held at London Luton Airport to other Group
companies without the funder's consent.
The funding arrangements at Orlando Sanford International, Inc. impose
restrictions on the transferability of net debt items held at Orlando Sanford
International, Inc. to other Group companies without the funder's consent.
ADDITIONAL FINANCIAL INFORMATION
Restated
Year to Year to
31 March 2002 31 March 2001
£'000 £'000
Total operating profit before depreciation, amortisation and
exceptional items
London Luton 20,413 -
Belfast International 15,619 18,093
Cardiff International 12,574 12,123
Orlando Sanford 1,085 1,602
Stockholm Skavsta (960) (858)
Bolivia 3,711 3,468
Airport Services 1,804 1,693
Airport Management - North America 998 892
- London Luton Airport 1,220 469
- Australia 84 426
- Costa Rica 316 (287)
- Share of operating - 539
result of joint ventures
- London Luton Airport
Total - airports division 56,864 38,160
Other operations 1,322 308
Head office (5,125) (6,853)
Total operating profit before depreciation, amortisation and 53,061 31,615
exceptional items
Exceptional items (9,112) (1,028)
Depreciation - normal (12,235) (5,558)
- accelerated (5,743) -
Amortisation - normal (8,244) (4,624)
- accelerated 5,630 -
Profit before interest, tax and profit on sale of investments and 23,357 20,405
joint ventures
Profit on sale of investments and joint ventures 4,940 -
Net interest payable excluding exceptional interest items (11,752) (6,734)
Exceptional interest items - (494)
Profit on ordinary activities before tax 16,545 13,177
Tax on profit on ordinary activities (6,397) (5,730)
Profit for the financial year 10,148 7,447
Profit attributable to shareholders before normal amortisation and 20,768 13,593
exceptional items (Note 5)
Earnings per share before normal amortisation and exceptional 3.71p 2.67p
items
AIRPORT OPERATIONAL INFORMATION
31 March 31 March 31 March 31 March 31 March 31 March
2002 2001 2002 2001 2002 2001
London Luton Airport Belfast International Cardiff International
Airport Airport
Total passengers ('000)
Charter 1,402 1,365 781 817 1,133 1,149
Scheduled 562 558 1,048 1,630 322 312
Low cost 4,596 4,408 1,840 708 70 65
Transit 37 33 16 20 16 21
Total 6,597 6,364 3,685 3,175 1,541 1,547
Terminal Passengers
Spend per head £4.02 £3.65* £2.28 £2.23 £2.75 £2.38
Net passenger supplement per £3.17 £1.95* £3.43 £4.54 £6.07 £5.99
head
Total £7.19 £5.60* £5.71 £6.77 £8.82 £8.37
Charter services
Number of tour operators 25 24 23 23 36 32
Number of seats offered (' 1,656 1,567 890 940 1,250 1,289
000)
New charter destinations 3 2 - 2 6 1
Scheduled and low cost
services
Number of major airlines 7 7 8 10 5 5
Number of seats offered (' 6,424 6,430 4,164 3,350 691 655
000)
Freight tonnage 25,242 35,862 46,413 47,100 2,881 3,569
Some the of scheduled services from London Luton - Aberdeen, Alicante,
Amsterdam, Athens, Barcelona, Belfast, Dublin, Edinburgh, Geneva, Gibraltar,
Glasgow, Jersey, Madrid, Mahon, Malaga, Nice, Palma, Tenerife, Waterford and
Zurich.
Some of the scheduled services from Belfast International Airport - Amsterdam,
Birmingham, Bristol, Edinburgh, Glasgow, Liverpool, London Heathrow, London
Luton and London Stansted.
Some of the scheduled services from Cardiff International Airport - Amsterdam,
Brussels, Dublin, Edinburgh, Glasgow and Paris.
*This information relates to a period prior to acquisition by TBI.
AIRPORT OWNERSHIP WITH A CONTROLLING INTEREST (CONTINUED)
31 March 31 March 31 March 31 March 31 March 31 March
2002 2001 2002 2001 2002 2001
Orlando Sanford Stockholm Skavsta Airport Bolivian Airports
Total passengers ('
000)
Charter 949 880 - 4 - -
Scheduled 5 - 9 7 1,861 2,035
Low cost 233 136 255 258 - -
Transit 132 176 7 9 325 365
Total 1,319 1,192 271 278 2,186 2,400
Terminal Passengers
Spend per head £3.74 £4.13 £1.18 £2.32 £1.58 £1.56
Net passenger £1.42 £1.42 £0.36 £0.49 £2.53 £2.33
supplement per head
Total £5.16 £5.55 £1.54 £2.81 £4.11 £3.89
Charter services
Number of tour 23 19 - 1 - -
operators
Number of seats offered (' 999 927 - 4 - -
000)
New charter 12 4 - 1 - -
destinations
Scheduled and low cost
services
Number of major 2 1 2 3 9 9
airlines
Number of seats offered (' 473 326 409 400 3,838 3,848
000)
Freight tonnage 7,719 11,332 11,790 18,777 5,680 5,566
Some of the services from Orlando Sanford - Acapulco, Aruba, Atlanta, Atlantic
City, Bahamas, Belfast, Birmingham, Cancun, Cardiff, Costa Rica,
Edinburgh,Glasgow, Gulfport, London Gatwick, Manchester, Memphis, Mexico City,
Montego Bay, Newcastle, Portsmouth, Puerto Vallarta and Washington.
Some of the services from Stockholm Skavsta Airport - Helsinki, London Stansted
and Visby.
Some of the services from the Bolivian Airports - Asuncion, Bogota, Buenos
Aires, Caracas, Lima, Mexico City, Miami, Montevideo, Panama City, Rio de
Janeiro, Santiago and Sao Paulo.
Accounting Policy
This preliminary announcement has 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 2001, except for the introduction of Financial Reporting
Standard 19 'deferred tax'.
Audit Status
The financial information set out in this announcement does not constitute the
Group's statutory accounts for the years ended 31 March 2002 or 31 March 2001.
The financial information has, however, been extracted from statutory accounts
for those years which have been audited. The auditors' reports on those
statutory accounts were unqualified.
This preliminary announcement was approved by the Board on 24 June 2002.
This information is provided by RNS
The company news service from the London Stock Exchange
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