Annual Financial Report

Manchester Airport Grp Funding PLC

01 July 2025

 

Issuer: Manchester Airport Group Funding PLC

Date: 1 July 2025

Manchester Airport Group Funding PLC

Company No. 8826541

Annual Results

The Issuer's parent, Manchester Airport Group Investments Limited ("MAGIL"), today publishes its Annual Financial Report and consolidated financial statements for the year ended 31 March 2025.

MAGIL's parent, Manchester Airports Holdings Limited ("MAHL"), today also publishes its Annual Financial Report and consolidated financial statements for the year ended 31 March 2025.

The Annual Reports and consolidated financial statements for MAHL and MAGIL, together with the Investor Presentation, Investor Report and Compliance Certificate for MAGIL, are available on Manchester Airports Group's Investor Relations website at magairports.com/investor-relations.

Investor Presentation

A conference call to present the results to bondholders, bank lenders, rating agencies and credit analysts will be held on Tuesday 1 July 2025 at 10.00 am (UK time). The call will be hosted by Jan Bramall, Chief Financial Officer, Iain Ashworth, Corporate Finance Director, and Neil Robinson, Chief Sustainability Officer.

MAGIL results for the 12 months ended 31 March 2025

Across its airports, MAG has enhanced the UK's global connectivity over the past 12 months, securing new services to destinations across Europe, America, the Middle East and Africa, giving passengers in all parts of the country greater choice when it comes to international travel. Continued passenger growth has underpinned MAG's strong financial performance in the 12 months to 31 March 2025.

Passenger numbers for the year were 65.0 million, an increase of 6.0% compared to the 61.3 million passengers in the previous year. That means around one in five of all UK air travellers used a MAG airport during the year, reflecting the reach of our combined catchment areas.

MAGIL's revenue has increased by 8.5% to £1,342.4 million, which has resulted in an Adjusted EBITDA of £570.3 million, an increase of £63.6 million (12.6%).  MAGIL delivered an operating profit of £264.5 million for the year ended 31 March 2025 (2024: £240.4 million).

MAGIL Key Financials	12 months ended 31 March 2025 (£m) (FY25)	12 months ended 31 March 2024 (£m) (FY24)	Change (%)
Revenue	1,342.4	1,237.7	8.5%
Adjusted EBITDA*	570.3	506.7	12.6%
Adjusted EBITDA*(excluding impact of IFRS 16)	528.0	468.2	12.8%
Operating profit (before adjusted items)	300.7	255.4	17.7%
Operating profit	264.5	240.4	10.0%
Profit/(loss) before taxation	217.7	218.0	(0.1)%

Passengers	12 months ended 31 March 2025 (m) (FY25)	12 months ended 31 March 2024 (m) (FY24)	Change (%)
Manchester	31.1	28.8	8.0%
London Stansted	29.9	28.5	4.9%
East Midlands	4.0	4.0	-  %
Total	65.0	61.3	6.0%

*Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, gains and losses on sales and valuation of investment properties, and adjusted items

MAGIL's parent, MAHL, reported an Adjusted EBITDA of £570.4 million, and a profit from operations of £263.2 million.   

Highlights

·      Manchester Airport served 31.1 million passengers, an increase of 8% on FY24, signalling a record-breaking performance. In a significant milestone, the airport hit 30 million passengers served over a 12-month period in September 2024. Passenger growth has steadily continued into FY26.

·      London Stansted saw history-making passenger numbers across FY25, serving 29.9 million people, which was a 4.9% increase on FY24. Volume was driven by growth from our existing carriers and a number of new airlines starting operations. Stansted also recorded the busiest day in its history, with more than 107,000 passengers passing through the airport on a single day in October 2024.

·      East Midlands Airport served 4.0 million passengers in FY25, the same figure as in the previous year. East Midlands' cargo operation, the UK's largest pure freight operation, remained consistent, throughout the period, handling more than 367,000 tonnes of cargo in FY25. From its central operation, 85% of the UK population lies within a four-hour truck drive. Across the globe, East Midlands Airport has one-stop access to 185 of the world's major cities.

·      MAG's global footprint continues to increase through CAVU, which is in itself an example of MAG's commitment to innovation and diversification. Since forming in 2022, CAVU has expanded both its reach and capability. Across its activities, including global lounge operations and the acquisition of airport parking businesses, CAVU now operates in 48 countries and 308 airports. In FY25 CAVU contributed £70.6 million to MAGIL's Adjusted EBITDA of £570.3 million, an increase of 11.4% on FY24.

·      Against a backdrop of government support for sustainable aviation expansion, MAG continued to invest strongly in our airports during the year, with plans to invest around £2.5 billion over the next five years, which would cement our position as the UK's largest private funder of transport infrastructure schemes outside of London.

o  2025 will be a significant year for Manchester, as its 10 year Transformation Programme completes. During the year, a number of important construction milestones were achieved, with passenger feedback on the new facilities already delivered continuing to be hugely positive. As MAG enters the final months of the project's delivery, it is also pleasing to reflect on its legacy. Since the start of Phase 2 in 2023, 118 jobs have been created, including 2,807 apprenticeship weeks. Of those 54% were within a 35-mile radius of the airport.

o  In October 2024 London Stansted announced a five-year, £1.1bn investment plan during the Government's International Investment Summit. These plans include an extension to Stansted's

existing terminal, the creation of a major solar farm and other capital projects, all aimed at enhancing the customer experience.

o  Underlining the role of aviation in driving growth, East Midlands Airport's partnership with Prologis was a prominent feature of the Chancellor's growth speech earlier this year. Under the agreement, up to £1 billion of investment will be unlocked around the airport through the development of logistics and advanced manufacturing space. East Midlands also announced plans to bring forward four further sites next to its runway for development, with the potential to create more than 21,000 jobs.

·      In May 2024 MAGIL executed the second of two one-year extension options on its £500 million revolving credit facility, extending the maturity of this facility together with the Liquidity Facility to May 2029. The Liquidity Facility was increased to £135 million (previously £90 million) in March 2025 to provide sufficient interest cover for future bond issuances. The revolving credit facility and liquidity facility were undrawn at 31 March 2025.

·      In April 2024 MAG issued a £300 million bond, maturing in 2042, with a coupon of 5.75% providing funding for the Group's investment activities in FY25. Earlier in the month MAG repaid a £360 million bond as per the scheduled maturity. 

·      In March 2025 MAG issued a €500 million bond, maturing in 2035 with a coupon of 4.00%. On the same date MAG entered into a Cross Currency Swap to swap EUR notional (initial and final) exchanges and annual fixed interest payments to GBP at a notional £420.35 million and a fixed sterling rate of 5.7018% p.a. There is no ongoing Euro exposure.    

·      MAGIL's £1,760 million and €500 million of listed bonds, together with the bank facilities described above and retained cash resources of £253.5 million as at 31 March 2025, provide it with a long-term stable funding platform. Together with the undrawn revolving credit facility MAGIL had in excess of £0.7 billion of liquidity at the year end.

·      MAGIL's Leverage covenant for the 31 March 2025 Calculation Date was 3.7x. Interest Cover was 6.2x. Leverage remains 0.8x lower than the pre-pandemic 31 March 2020 Calculation Date (4.5x).

·      MAG's financing strategy incorporates its strong investment grade ratings with Fitch (BBB+ stable outlook) and Moody's (Baa1 stable outlook) and a long-term financing structure to support growth.

·      A £15 million special Dividend was paid by MAHL on 31 March 2025 in respect of the outperformance of its FY25 Business Plan. Dividends paid by MAHL are funded via Distributions from MAGIL.

·      In May 2025 the Group published its new Sustainability Strategy, coming at a pivotal time for aviation as our industry embraces low-emission technologies and works towards global decarbonisation targets. Since 2007, MAG's operational emissions (scope 1 and 2) have reduced by 90% and we have developed a clear roadmap to achieve net zero carbon operations by 2038. MAG continues to play a leading role advancing

aviation sustainability, collaborating with partners and governments to ensure the sector's growth is compatible with our responsibility to decarbonise the economy.

·      MAG's latest annual Corporate and Social Responsibility (CSR) report and Sustainability Strategy is available on MAG's Responsible Business website (magairports.com/responsible-business/csr-reports/ and www.magairports.com/work-with-us/our-sustainability-plans/) 

·      MAG's commitment to implementing effective sustainability practices continues to be independently recognised. This year, the Group retained its five-star GRESB Environmental, Social and Governance (ESG) rating, and achieved a gold standard EcoVadis award which placed MAG in the top 5% of the more than 130,000 companies assessed globally.

Note on MAGIL Results

Reconciliations between the financial results of MAGIL and MAHL and MAGIL's Adjusted EBITDA (excluding impact of IFRS 16) are available in the appendix of the Investor Presentation, which is available on MAHL's Investor Relations website at magairports.com/investor-relations.

Enquiries:

Investor Relations                                               [e-mail]

MAG Press Office                                                [e-mail]        

 

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