Manchester Airport Grp Funding PLC Interim Results (8193Q)

TIDM38LZ

RNS Number : 8193Q

Manchester Airport Grp Funding PLC

06 December 2016

Issuer: Manchester Airport Group Funding PLC

Date: 6 December 2016

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 2016.

MAGIL's parent, Manchester Airports Holdings Limited ("MAHL"), today also publishes its Interim Report and Accounts for the six months ended 30 September 2016.

The Interim Report and Accounts for MAHL and MAGIL are available on MAGIL's Investor Relations website at magworld.co.uk/investors.

Investor Presentation

A conference call to present the results to bondholders, bank lenders and credit analysts will be held on Tuesday 6(th) December 2016 at 10.00 am (UK time). The call will be hosted by Neil Thompson, Chief Financial Officer, and Ken O'Toole, Managing Director, Manchester Airport.

Dial-in details for the call are: UK free phone: 0800 358 6377; UK local/standard international: +44(0)330 336 9105. Participant PIN code is 6035058.

The presentation can be viewed online during the event by using the link: http://view-w.tv/755-1197-17688/en

MAGIL results for the six months ended 30 September 2016

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   6 months ended   Change (%) 
                           30 September     30 September 
                            2016 (GBPm)      2015 (GBPm) 
----------------------  ---------------  ---------------  ----------- 
 Revenue                          482.0            445.5        +8.2% 
 EBITDA                           217.8            201.9        +7.9% 
 Operating profit 
  (before significant 
  items)                          150.3            138.2        +8.8% 
----------------------  ---------------  ---------------  ----------- 
 
 
 Passengers       6 months ended   6 months ended   Change (%) 
                    30 September     30 September 
                        2016 (m)         2015 (m) 
---------------  ---------------  ---------------  ----------- 
 Manchester                 15.2             13.8       +10.1% 
 Stansted                   13.3             12.5        +6.4% 
 East Midlands               3.1              2.9        +6.9% 
 Bournemouth                 0.4              0.5       -20.0% 
 Total                      32.0             29.7        +7.7% 
---------------  ---------------  ---------------  -----------

Highlights

-- Group EBITDA rose by 7.9% to GBP217.8 million, driven by record passenger numbers (+7.7% to 32.0 million) and successful new route development - with Manchester and 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 EBITDA, backed up by continued investment in infrastructure.

-- Record numbers of passengers are using Manchester Airport. Passenger numbers in the six months to September 2016 were 15.2 million, 10.1% up on the same period last year. August was the busiest month in the airport's 78-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 6.4% to 13.3 million. East Midlands Airport continues to perform well, with passenger numbers growing by 6.9% in the first six months and continued expansion of the airport's cargo facilities. East Midlands is now DHL's second biggest global hub, and it 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 over 25 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 Beijing, San Francisco, Houston and Singapore. Long haul flights announced from Stansted include Montego Bay, Las Vegas and Orlando. New short haul routes from MAG airports include Budapest, Girona, Stockholm, Naples and Dubrovnik.

-- 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.

-- Work on the initial phases of the GBP1bn, 10 year Manchester Transformation Programme announced last year has been ongoing and the project is now in its detailed design phase. In March the scheme received planning consent and in July, Laing O'Rourke was awarded the contract for the initial phase marking major milestones for this transformation project. The GBP1 billion 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.

-- The Stansted Terminal Transformation Programme is now complete, delivering a significantly improved retail and food & beverage offering to passengers contributing to increases in both revenue and yield at the airport.

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

-- In June 2016 MAGIL refinanced its GBP300 million Revolving Credit and GBP60 million Liquidity facilities, which were due to mature in February 2018, with a new five year GBP500 million RCF and a GBP60 million liquidity facility, maturing June 2021, achieving significant savings in the process. MAGIL has now successfully refinanced all of the STN acquisition bank debt with this latest refinancing of its short-term facilities in combination with the issuance of two listed bonds in 2014. There is strong headroom in the Group's financing facilities with GBP147 million drawn down on the GBP500m Revolving Credit Facility at 30 September 2016.

-- Strong trading performance combined with a prudent financing policy underpins stable financial leverage (2.8x Net Debt to EBITDA) and enables MAGIL to continue to invest in the asset base and fund future growth.

-- A final dividend of GBP77.2 million was paid by MAHL in July 2016 in respect of the full year ended 31 March 2016. An interim dividend of GBP47.0 million will be paid on 7 December 2016 in respect of the full year ended 31 March 2017. 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 magworld.co.uk/investors.

Enquiries:

   Investor Relations                                               investor.relations@magairports.com 
   MAG Press Office                                                press.office@magairports.com

This information is provided by RNS

The company news service from the London Stock Exchange

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