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Manchester Ap Grp Fd (38LZ)

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Thursday 07 December, 2017

Manchester Ap Grp Fd

Half-year Report

RNS Number : 5803Y
Manchester Airport Grp Funding PLC
07 December 2017
 

Issuer: Manchester Airport Group Funding PLC

Date: 7 December 2017

 

Manchester Airport Group Funding PLC

Company No. 8826541

 

Interim Results

 

The Issuer's parent, Manchester Airport Group Investments Limited ("MAGIL"), today publishes its Interim Report and Accounts for the six months ended 30 September 2017.

MAGIL's parent, Manchester Airports Holdings Limited ("MAHL"), today also publishes its Interim Report and Accounts for the six months ended 30 September 2017.

The Interim Report and Accounts for MAHL and MAGIL are available on MAGIL's Investor Relations website at magairports.com/investor-relations/annual-and-interim-reports.

Investor Presentation

A conference call to present the results to bondholders, bank lenders and credit analysts will be held on Thursday 7th December 2017 at 10.00 am (UK time). The call will be hosted by Neil Thompson, Chief Financial Officer, and Andrew Cowan, Chief Executive Officer, Manchester Airport.

Dial-in details for the call are: UK local/standard international: +44 (0)330 336 9105. Participant PIN code is 5296602.

The presentation can be viewed online during the event by using the link: http://view-w.tv/755-1197-19064/en

MAGIL results for the six months ended 30 September 2017

The first half of the year has seen sustained growth, meeting or exceeding our key targets and seeing record numbers of passengers using our airports. Our Group model continues to deliver benefits and support our airports in competing to attract new passengers and airlines.

Key Financials

6 months ended 30 September 2017 (£m)

6 months ended 30 September 2016 (£m)

Change (%)

Revenue

543.0

482.0

+12.7%

Adjusted EBITDA

236.6

217.8

+8.6%

Adjusted operating profit

164.8

150.3

+9.6%

Result from operations

160.1

147.4

+8.6%

 

Passengers

6 months ended 30 September 2017 (m)

6 months ended 30 September 2016 (m)

Change (%)

Manchester

16.6

15.2

+9.6%

London Stansted

14.6

13.3

+9.8%

East Midlands

3.2

3.1

+3.2%

Bournemouth

0.5

0.4

+3.3%

Total

34.9

32.0

+9.1%

 

Highlights

•   Group adjusted EBITDA1 rose by 8.6% to £236.6 million, driven by record passenger numbers (+9.1% to 34.9 million) and successful new route development - with Manchester and London Stansted in particular both handling increasing numbers of passengers. A continued focus on investment in customer service to facilitate increased volumes, together with underlying cost control and measures to improve operating performance, has again contributed to growth in adjusted EBITDA1, backed up by continued investment in infrastructure. After deducting depreciation, amortisation and significant items, and adjusting for gains on sale of investment properties, the result from operations for the period was £160.1m, an increase of £12.7m (8.6%) on the prior period.

 

•   Record numbers of passengers are using Manchester Airport. Passenger numbers in the six months to September 2017 were 16.6 million, 9.6% up on the same period last year. August was the busiest month in the airport's 79-year history and this momentum has continued into the Autumn. London Stansted, serving more European cities than any other UK airport, has also experienced impressive growth with passenger numbers up 9.8% to 14.6 million. East Midlands Airport continues to perform well, with passenger numbers growing by 3.2% in the first six months and continued expansion of the airport's cargo facilities. East Midlands continues to be the biggest airport in the UK for all-cargo flights as customers take advantage of its strong location and convenient access to the motorway network.

 

•   The introduction of a number of new routes across the Group has helped to boost passenger numbers to record levels. The new routes include a host of destinations across the globe, including new long haul routes announced from Manchester to San Francisco, Boston, Muscat and Hong Kong. Long haul flights announced from London Stansted include daily services to New York, Boston and Toronto. New short haul routes from MAG airports include Frankfurt, Budapest, and Geneva.

 

•   Increased revenues have also been driven by more passengers upgrading their airport experience and taking advantage of MAG's award-winning Escape Lounges, Premium 'Meet and Greet' valet parking offers and fast track security clearance.

 

•   Construction work on the £1bn, 10 year Manchester Transformation Programme has commenced. In May, Galliford Try was awarded the apron and airfield contract. Laing O'Rourke was awarded the contract for the terminal extension in July. The modular programme updates and re-profiles existing long-term capital investment plans. Financing considerations are central to the refresh of the transformation master plan with the focus on component separability, and flexibility to match investment to market conditions. The programme financing reflects the Group's ongoing commitment to maintaining its strong investment-grade credit rating.

 

•   A new £0.5bn capital programme has commenced at London Stansted to be completed over the next 4 years. The new phased investment will match terminal capacity to runway capacity with the construction of a purpose built arrivals facility; transformation of the existing terminal into a dedicated departure only building; and an upgrade to airside infrastructure.

 

•   London Stansted is well-placed to absorb future growth in London's aviation demand prior to any new runway being built at London Heathrow.

 

•   There is strong headroom in the Group's financing facilities with £207 million drawn down on the £500m Revolving Credit Facility at 30 September 2017. The balance on the Revolving Credit Facility was repaid in November 2017 with proceeds from Manchester Airport Group Funding PLC's £300m 22 year bond issue.

 

•   Strong trading performance combined with a prudent financing policy underpins stable financial leverage (2.7x Net Debt to EBITDA) and enables MAGIL to continue to invest in the asset base and fund future growth.

 

•   A final dividend of £93.9 million was paid by MAHL in July 2017 in respect of the full year ended 31 March 2017. An interim dividend of £55.3 million will be paid on 7 December 2017 in respect of the full year ending 31 March 2018. Dividends paid by MAHL are funded via distributions from MAGIL.

 

Note on MAGIL Results

 

A reconciliation between the financial results of MAGIL and MAHL is available in the appendix of the Investor Presentation, which is available on MAGIL's Investor Relations website at magairports.com.

 

Enquiries:

 

Investor Relations                                               [email protected]

 

MAG Press Office                                                [email protected]          


This information is provided by RNS
The company news service from the London Stock Exchange
 
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