TIDM38LZ
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 7(th) 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 6 months Change (%)
ended 30 ended 30
September September
2017 (GBPm) 2016 (GBPm)
-------------------- ------------- ------------- -----------
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 6 months Change (%)
ended 30 ended 30
September September
2017 (m) 2016 (m)
----------------- ----------- ----------- -----------
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 EBITDA(1) rose by 8.6% to GBP236.6 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 EBITDA(1) , 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 GBP160.1m, an increase of GBP12.7m (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 GBP1bn, 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 GBP0.5bn 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 GBP207 million drawn down on the GBP500m 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 GBP300m 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 GBP93.9 million was paid by MAHL in July
2017 in respect of the full year ended 31 March 2017. An interim
dividend of GBP55.3 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 investor.relations@magairports.com
MAG Press Office pressoffice@magairports.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BXBDDBGGBGRL
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