TIDM38LZ
RNS Number : 4919T
Manchester Airport Grp Funding PLC
05 July 2018
Issuer: Manchester Airport Group Funding PLC
Date: 5 July 2018
Manchester Airport Group Funding PLC
Company No. 8826541
Annual Results
The Issuer's parent, Manchester Airport Group Investments
Limited ("MAGIL"), today publishes its Annual Report and financial
statements for the year ended 31 March 2018.
MAGIL's parent, Manchester Airports Holdings Limited ("MAHL"),
today also publishes its Annual Report and financial statements for
the year ended 31 March 2018.
The Annual Reports and financial statements for MAHL and MAGIL
are available on MAGIL's Investor Relations website at
magairports.com/investor-relations.
Investor Presentation
A conference call to present the results to bondholders, bank
lenders and credit analysts will be held on Thursday 5 July 2018 at
10.30 am (UK time). The call will be hosted by Neil Thompson, Chief
Financial Officer, and Andrew Cowan, Chief Executive Officer for
Manchester Airport.
Dial-in details for the call are: UK local/standard
international: +44 (0)330 336 9411. Participant PIN code:
7186670.
The presentation can be viewed online during the event by using
the link: http://view-w.tv/755-1197-19914/en
MAGIL results for the 12 months ended 31 March 2018
MAGIL has delivered strong financial performance in the year
ended 31 March 2018, meeting or exceeding its financial targets and
continuing the growth delivered over the past few years. This is
driven by increases in passengers, continued improvement in
commercial performance and focussed expenditure to support both
volume growth and improved customer service.
Key Financials* 12 months ended 12 months ended Change (%)
31 March 2018 31 March 2017
(GBPm) (GBPm)
------------------------ ---------------- ---------------- -----------
Revenue 814.3 741.5 +9.8%
Adjusted EBITDA** 360.0 343.6 +4.8%
Operating profit
(before significant
items) 217.1 207.6 +4.6%
Result from operations 208.5 200.5 +4.0%
------------------------ ---------------- ---------------- -----------
Passengers* 12 months ended 12 months ended Change (%)
31 March 2018 31 March 2017
(m) (m)
----------------- ---------------- ---------------- -----------
Manchester 27.9 26.2 +6.5%
London Stansted 26.1 24.3 +7.4%
East Midlands 4.9 4.7 +4.3%
Total 58.9 55.2 +6.7%
----------------- ---------------- ---------------- -----------
* On 5 December 2017 MAG entered into an agreement to sell its
entire shareholdings in Bournemouth International Airport Limited
and its subsidiaries to Regional and City Airports Holdings
Limited, a subsidiary of Rigby Group PLC. The results and passenger
numbers for each of 2017 and 2018 for Bournemouth have been
excluded from the tables above.
**Adjusted EBITDA is earnings before interest, tax,
depreciation, amortisation, gains and losses on sales and valuation
of investment properties, and significant items
MAGIL adopted IFRS 15 'Revenue from Contracts with Customers',
on 1 April 2017 using the full retrospective method. The adoption
of the standard has the impact of restating revenue and costs by
equal amounts, with nil impact on adjusted EBITDA** or the result
from operations in either year.
Highlights
-- Long-term commercial agreements with airlines have generated
a significant increase in passengers (+6.7% to 58.9m), driven by
record numbers at Manchester Airport (+6.5% to 27.9m) and strong
growth at London Stansted Airport (+7.4% to 26.1m).
-- Continued expansion of the route network with important
extensions operating and/or announced to short-haul and long-haul
connectivity including the arrival of new flights to Dubai, New
York, Washington DC, San Francisco, Toronto, Montego Bay, Hong
Kong, Addis Ababa, Hurghada and Muscat.
-- The growth in passenger numbers combined with commercial
yield improvements has translated into a strong set of financial
results - Adjusted EBITDA** up by GBP16 million (or 4.8%) from
GBP344 million to GBP360 million.
-- Substantial investment in airport infrastructure. The
Manchester Transformation Programme represented the largest
individual project, with construction work commencing during Summer
2017. Other investment includes: continued development of the
Group's car park estate; improvements to the Group's IT
capabilities; and initial planning costs for new facilities at
London Stansted, which has secured planning approval, and which
will enhance the overall passenger experience and provide the
airport with the terminal infrastructure it needs in order to
enable it to continue to grow.
-- Manchester Airport commenced work on its GBP1 billion
Transformation Programme during the financial period; a scheme
which will allow the airport to continue to grow and provide
airlines and passengers with the latest technology to improve the
airport experience. The first major phase of the transformation
programme was delivered in February 2018, connecting the steel
framework of one of the new airport piers to the terminal extension
for the first time. 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.
-- London Stansted remains well-placed to absorb future growth
in London's aviation demand prior to any new runway being built at
London Heathrow. London Stansted secured planning permission for a
new dedicated arrivals terminal in April 2017. London Stansted has
also submitted a planning application to Uttlesford District
Council, to raise limits on the number of passengers that the
airport is permitted to serve from 35 million passengers per year
to 43 million. Raising London Stansted's 'planning cap' will allow
it to work with airlines to plan for the future with certainty.
-- In November 2017 MAGIL issued a GBP300 million 22 year bond
with a coupon of 2.875%, listed on the London Stock Exchange,
taking the Group's total listed bonds in issue to GBP1,110 million.
Together with the GBP500 million revolving credit facility and a
GBP60 million liquidity facility, maturing June 2023 (following
exercise of two one-year extension options), these facilities
provide for a long-term stable funding platform, and liquidity to
continue to invest in the asset base and fund future growth.
-- Strong trading performance, combined with a prudent financing
policy, underpins stable financial leverage (3.1x net debt to
EBITDA**).
-- A 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 was paid in December 2017, and a final
dividend of GBP110.7m will be paid in July 2018, making a total
dividend of GBP166.0 million in respect of the full year ended 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/investor-relations.
Enquiries:
Investor Relations investor.relations@magairports.com
MAG Press Office press.office@magairports.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR EXLFBVDFEBBL
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