TIDM38LZ
RNS Number : 5493J
Manchester Airport Grp Funding PLC
06 December 2018
Issuer: Manchester Airport Group Funding PLC
Date: 6 December 2018
Manchester Airport Group Funding PLC
Company No. 8826541
Interim Results
The Issuer's parent, Manchester Airport Group Investments
Limited ("MAGIL"), today publishes its Interim Financial Report and
condensed consolidated financial statements for the half year ended
30 September 2018.
MAGIL's parent, Manchester Airports Holdings Limited ("MAHL"),
today also publishes its Interim Financial Report and condensed
consolidated financial statements for the half year ended 30
September 2018.
The Interim Reports and condensed consolidated financial
statements for MAHL and MAGIL are available on MAHL'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 6 December
2018 at 10.00 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:
5227777.
The presentation can be viewed online during the event by using
the link: http://view-w.tv/755-1197-20753/en
MAGIL results for the six months ended 30 September 2018
MAGIL has delivered solid financial performance in the 6 months
ended 30 September 2018, continuing the Group's growth delivered
over the past few years despite challenges presented by last year's
Monarch failure, together with air traffic and pilot strikes during
the period. This has been driven by continued route development,
successful backfill of routes to fill the gap left by Monarch,
increased focus on digital engagement with retail and car park
customers, and targeted investment to support volume growth and
customer service.
Key Financials* 6 months ended 6 months ended Change (%)
30 September 30 September
2018 (GBPm) 2017 (GBPm)
(restated for
IFRS 15)
---------------------- --------------- --------------- -----------
Revenue 504.0 467.7 +7.8%
Adjusted EBITDA** 244.8 235.7 +3.9%
Operating profit
(before significant
items) 168.5 164.6 +2.4%
Profit before tax 157.0 146.3 +7.3%
---------------------- --------------- --------------- -----------
Passengers* 6 months ended 6 months ended Change (%)
30 September 30 September
2018 (m) 2017 (m)
----------------- --------------- --------------- -----------
Manchester 16.6 16.6 0.0%
London Stansted 15.9 14.6 +8.9%
East Midlands 3.2 3.2 0.0%
Total 35.7 34.4 +3.8%
----------------- --------------- --------------- -----------
* 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 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, for the year ended 31 March 2018, using the full
retrospective method. The results in respect of MAGIL's performance
in 2018 and 2017 are presented under IFRS 15. The adoption of the
standard had 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
-- Passenger numbers increased to 35.7m (+3.8%), driven by
record numbers at London Stansted Airport ("STN") (+8.9% to 15.9m).
Manchester Airport ("MAN") had a resilient summer with passenger
numbers remaining flat (0.0% to 16.6m) as the airport successfully
backfilled the capacity previously operated by Monarch.
-- Continued expansion of the route network with important
extensions operating and/or announced to short-haul and long-haul
destinations including the arrival of Emirates at STN and new
airlines such as WOW Air, Air Corsica, Pobeda and Montenegro
Airlines which are now operating from MAG airports.
-- The growth in passenger numbers combined with commercial
yield improvements has translated into a strong set of financial
results - Adjusted EBITDA** up by GBP9.1 million (or 3.9%) from
GBP235.7 million to GBP244.8 million. The combination of the
backfill of Monarch passengers, air traffic control strikes, and
pilot strikes is estimated to have had a circa 3% drag on
year-on-year Adjusted EBITDA** growth across the across the
Group.
-- Manchester Airport Transformation Programme has been under
construction for over a year, with work on target in terms of both
cost and schedule. Manchester Airport Transformation Programme is
the largest ever private sector investment in the North West. The
Transformation Programme aims to 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, the opening of a new pier and apron, is
due to be operational in Spring 2019.
-- 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 STN,
which has secured planning approval, and 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.
-- STN remains well-placed to absorb future growth in London's
aviation demand prior to any new runway being built at London
Heathrow. STN recently received approval to raise the 'planning
cap' from 35 million passengers per annum to 43 million passengers
per annum, which will enable it to make best use of its spare
runway capacity over the next decade at a time when other London
airports are approaching full capacity.
-- The Group's total listed bonds in issue remains at GBP1,110
million. Together with the GBP500 million revolving credit facility
and a GBP60 million liquidity facility (maturing June 2023), these
facilities provide for a long-term stable funding platform ensuring
the Group has sufficient liquidity to continue to invest in the
asset base and fund future growth. In July 2018 MAGIL's parent,
MAHL executed a new GBP350 million loan facility with shareholders,
through its subsidiary Manchester Airport Finance Holdings Limited,
providing further support from shareholders towards the Group's
investment plans.
-- Strong trading performance, combined with a prudent financing
policy, underpins stable financial leverage (3.1x net debt to
EBITDA).
-- A final dividend of GBP110.7 million was paid in July 2018 by
MAHL in respect of the full year ended 31 March 2018. An interim
dividend of GBP64.0 million is due to be paid in December 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 MAHL'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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END
IR BDBDDSGGBGIU
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